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Moving the City - A Mass Transit Future for Trivandrum - Part II

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(....Cont.d)

As time progresses, with major developments like Vizhinjam and Technocity reaching their full potential and demand for public transit building up on key corridors, further monorail routes will become viable. For example, some of the existing high-capacity bus routes described earlier would need to be upgraded and integrated into a third monorail line that starts at Balaramapuram, first heads West to Vizhinjam and then runs via Kovalam-Eachakkal-T3-Kochuveli(along the Veli Road)-Veli-Aakulam-KIMS-Medical College campus-Pattom-Kowdiar-Peroorkada-Civil Station-Mananthala-Vembayam. This line will be between 35-40 Km long and cost about Rs 5500-6000 Crores. At this stage, Trivandrum's monorail network will be approximately 110 Km long and cost slightly under Rs 15,000 Crores.


Another option would be to curtail the line to Vizhinjam at one end and Vattapara at the other, which would reduce the length to about 30 Km and the cost to about Rs 4000 Crores.


At this stage, the core MRTS network by itself would provide connectivity between almost every key activity and transportation node - Technopark, Technocity, Vizhinjam, both main railway stations, Airport, ISRO, the city center and the educational centers, as well as to key catchments within the city and in the key suburbs and satellite urban area. This means that a significant portion of the expected 500,000-plus commuters in the Trivandrum metro area by 2018-20 will be have access to the system, ensuring high levels of ridership.

Rail and Water Links

While the monorail system and its associated bus services will be capable of handling commuter traffic within the core of the metro area, tens of thousands of people commute daily to and from Trivandrum from as far afield as Kollam and Nagercoil. Currently, most of them spend upwards of two hours on crowded buses and passenger/long distance train. An efficient and effective travel solution for this demand not only improves the quality of life of thousands of people but also expands the catchment of employers and educational institutions in the Trivandrum metro area to a region almost 150 Km across and with a population approaching 10 Million people. At present, the regional connectivity for this vast area consists primarily of the NH 66, the M.C.Road and the Kollam-Nagercoil mainline railway. Only low-capacity bus services operate at present on the two arterial roads and passenger/long distance trains on the rail line. The obvious solution seems to be the introduction of commuter rail services linking Kollam and Nagercoil to Trivandrum.
Commuter rail services are usually defined as a passenger rail transport service that primarily operates between a city center, and the middle to outer suburbs beyond 15 km (10 miles) and commuter towns or other locations that draw large numbers of commuters. These are generally operated on main-line rail tracks which share the right of way with cargo and long distance passenger services. They are distinct from the so-called "passenger" or "local" trains which use standard passenger coaches, in that their coaches are meant for maximum capacity, short haul uses and have dense seating arrangements/standing space and no toilets. In India, commuter rail is most popular in Mumbai, where the trains move a whopping 6.9 Million people a day, as well as in cities such as Chennai, Hyderabad and Kolkata. Kerala has long been promised the services of Mainline Electrical Multiple Units based out of sheds in Kollam and Palakkad. After hanging fire for half a dozen years, the first service started a few days ago with the grand total of two rakes, basically defeating the very purpose of having frequent commuter services. Moreover, although the service was first proposed in the Kollam-Trivandrum-Neyyatinkara stretch in 2006 and a MEMU service facility was set up in Kollam, the MEMU has now been introduced in the Palakkad-Ernakulam-Kottayam-Kollam stretch. For some reason, the Railways have introduced the services on a four-plus hour long route, for which they are grossly unsuited by basic definition, rather than on the one-hour Kollam-Trivandrum route, for which they are originally meant! I suppose logic left the building  a long time ago.....


It is estimated that over 50-60,000 people commute to Trivandrum daily from Kollam and Neyyatinkara, and places in between. If the scope is extended to Nagercoil and thinking out to 2015 when a commuter rail and monorail system could be made operational, we could be looking at 100,000 people a day in either direction. With the 65 Km Kollam-Trivandrum stretch taking about 90 minutes and the 30 Km Trivandrum - Nagercoil stretch taking about 50-60 minutes, 20 rakes would be needed to maintain a 15 minute frequency during the peak periods between 6.30 AM and 8.30 AM and 4.30 PM and 6.30 PM. Off-peak frequencies can be every 30 minutes to start with. The basic reason that the MEMU has remained on paper is the desperate lack of resources with the Railways to acquire the rakes needed. 20 rakes of 6 coaches each would cost between Rs 300-360 Crores. In cities like Mumbai and Hyderabad, the State Government bears a significant part or even a majority of the acquisition cost of the rakes as well as shares in any system related expenses. With a MEMU shed already available at Kollam, the latter would probably involve minor improvements to platforms, upgradation of some of the smaller stations along the route and the establishment of a second MEMU maintenance facility, potentially at Nemom. Services on the Kollam-Trivandrum stretch should terminate at Nemom and those on the Trivandrum-Nagercoil stretch would terminate at Kochuveli, allowing the heavily congested Trivandrum Central to act only as a pass-through station with two platforms dedicated to commuter rail services. The commuter rail could interconnect with the monorail at Kaniyapuram / Kazhakkoottam (via Skywalk), Kochuveli, Trivandrum Central and Neyyatinkara (potentially via Skywalk). The Railways has completed the survey for a new line between Erumeli and Trivandrum via Pathanamthitta and Punalur. It's expected to loop to the east of the core city area and meet the North-South mainline at Nemom. Commuter rail services can be run on this line as well up to Punalur with peak frequencies of 30 minutes, requiring another 4-6 rakes. Concurrently, and working in a joint funding model, the State could work with the Railways to add a third and a fourth track to the mainline between Trivandrum and Kollam, with the two new lines capable of supporting high speed train services as previously discussed.

In short, commuter rail services will help to extend the mass transit catchment of Trivandrum all the way to Kollam and Nagercoil, and thus benefit as many as 10 Million people in and around Trivandrum, helping to create an extended metropolitan area roughly the size of Chicago. It will help to extend the metro area further and help integrate the two cities closer with the regional center of activity. These services will also significantly de-congest the NH-66 and the MC Road. Once more, the need for integrated planning becomes evident since the commuter rail system needs not just trains and tracks but effective links with other transit systems to succeed. For example, the alignment of the monorail network as well as the design of some key stations may have to be finalized keeping in view the need to maximize direct monorail-commuter rail interchanges. If the monorail and commuter rail stations are too far apart, the percentage of inter-modal use would start to fall off. With effective integration, the 100,000 or more commuters using commuter rail daily would almost all also use the monorail system to complete their journeys.

Now that we have commuter rail out of the way, let's also cast a brief glance on a less obvious but no less potentially useful form of mass transit in the Trivandrum metro area, one that uses a natural pathway - water. Kerala is well known for its water transport, having utilized its extensive system of backwater lagoons, lakes, rivers and inland waterways for hundreds of years for moving people and cargo. The Kings of Travancore were at the fore-front of water transport, and engineered water transport at that, by not-so-minor feats of construction such as the Parvathy Puthanar canal, which includes what are probably the only cargo waterway tunnels in India.

Historic Imagery of the Parvathy Puthanar canal (Source: Life Photo Archive by Google via Scorpiogenius.com)

Needless to say, this proud canal system has fallen into disuse and all the State's horses, departments and dredgers have not managed to resurrect it till now despite multiple projects intended to clean out and operationalize the canal. The bulk of the waterway development has been concentrated on the Kollam-Kottapuram stretch of the so-called National Waterway III (as in many, many Crores spent but nothing much achieved). Preciously little has been done about the Kovalam-Kollam stretch despite many an announcement in the past few years. Systematic encroachment of the canal is one major hurdle which needs to be overcome before it can accommodate traffic. This can be achieved as can be the need to  dredge the length of the canal to reach an adequate operating draft, with enough effort and money, neither of which are in particularly short supply especially in view of New Delhi's interest in developing inland waterways through the Inland Waterway Authority of India. The IWAI has commissioned exhaustive research on the development of the Kollam-Kovalam stretch as well as for the Poovar - Colachel stretch (I didn't even know this existed!). Unfortunately, none of this is publicly available and little traction seems to have been achieved despite the enormous potential of the route because projects with an investment upwards of Rs 30,000 Crores - Technocity, Technopark, VSSC, Trivandrum International Airport and the Vizhinjam port - are all located along it.

The truth of the matter is that development of water transport has been lagging in part because of the absence of a clear demand pull despite frequent and loud discussions about the potential of inland cruise tourism and cargo movement. National Waterway III from Kottapuram to Kollam has seen only limited cargo movement even after being in development for over a decade and after expending hundreds of Crores. This in turn is due to the fact that neither passengers nor cargo are likely to take a different mode of transport unless there is no other alternative (as in parts of Kuttanad, for example) or (when trying to divert road/rail traffic on to water), it is significantly cheaper or faster. Water transport, as a whole, tends to be cheaper due to scale economies and the low cost of the transportation medium itself, as opposed to roads or rails which need constant maintenance. The key question is whether it would be faster. In the case of passenger transport on inland waterways, the answer is probably no considering the relative narrowness of the canals and the large number of bridges along the way (unless you have the skills and gadgets of 007 in Moonraker!). On average, canal boats could probably achieve 40 Km/hr and for select destinations like Chirayinkeezhu and Varkala town, which are closer to the canal than the NH 66, this could make sense for commuting to and from Trivandrum. The real attraction could be for cargo transport to and from Vizhinjam, although this would need significant expansion of the tunnels at Varkala.

The real potential for water transportation could lie along the coast where fast catamaran ferries can meet and beat the average speed of road/rail transport between key destinations such as Trivandrum, Varkala, Kollam and Colachel. These fast twin-hulled ships are widely used around the world to provide coastal and inland transit services, including here in Boston. Large catamaran ferries are fast, comfortable and can operate in pretty much all weather conditions. During off-peak hours and on holidays, they could be used for tourism and leisure activities, which will be a boon to the tourism sector. 

Image Courtesy: My-dreamboat.com
 
Trivandrum has a ready-made ferry terminal already in the form of the Valiathura sea pier that was once Kerala's busiest port but has now been reduced to a dilapidated relic by decades of administrative neglect and the abject denial of the obvious fact that the pier continues to have great tourism potential. If renovated, at a relatively small cost, the sea-pier can become a world-class ferry terminal, given its natural draft and its extreme proximity to the city center, the International Airport, Kochuveli railway terminal and the NH 66. Catamarans can cruise at 70-80 Km/hr, reaching Kollam (Thankasseri port) in less than an hour from Trivandrum and can be operated on a PPP basis at costs comparable to other modes of public transit.

Roads for a Million Vehicles

While mass transit is expected to reduce the demand for private vehicles in the coming decade, there is no denying the fact that the growth in the population of cars and private vehicles is also driven by income growth, which is likely to accelerate in Trivandrum over the next decade or two. People don't buy their own vehicle just because they NEED to (because public transport is deficient) but also be cause they WANT to and CAN buy. Even in cities with excellent public transportation, each household tends to have a car or two (if they can find affordable parking at or close to their residences!) for non-work and leisure travel. Trivandrum's vehicular population has already edged north of 1 Million (it has one of the higher per capita car ownership levels among large Indian cities) and it is growing at almost 70-80,000 vehicles per year. And this does not take into account the thousands of out-of-district and out-of-State vehicles brought in by the folks who come to work at Trivandrum (at Technopark, ISRO and so on) from elsewhere, or the thousands of cargo vehicles that come into the city every day from all across the country. The fact that the city's road network, including the newly completed TCRIP roads, are getting overwhelmed is painfully apparent for those driving around in Trivandrum and needs no further scientific proof. Even with the proposed mass transit systems, there needs to be a lot of road infrastructure development, not only to meet the needs of a modern metropolis but also to catch up with decades of lagging investment. Oh yes, let's not forget the tens of thousands of multi-axle trucks added on to the roads when the 6 Million container a year transshipment terminal at Vizhinjam comes online (even if 20% of the containers come in and out, we would be adding up to 4000 trucks a day to the city's traffic!)

At the top of the list is the NH 66 from Kazhakkoottam to Karode, whose four-laning has been delayed for various reasons - mostly the lack of political will - for over a decade now, even as the road itself exceeds the traffic threshold for six-laning! With Technocity, Technopark, VSSC, multiple industrial parks, the International Airport, Kochuveli rail terminal, Kovalam and Vizhinjam port all located along a 30 Km stretch of the road, it is by far the most critical piece of pending road development in Kerala. Fortunately, at long last, the project is moving forward with land acquisition for the part of the road not already acquired having commenced a few days ago. Dr Shashi Tharoor played a crucial role in persuading the Ministry of Highways to proceed with the strategic road even as other stretches of NH 66 continue to be plagued by the "45 m-or-not-45 m" debate. Work on expanding the desperately congested road to four-lanes is expected to begin later this year at a cost of Rs 800 Crores. One hopes that saner minds at NHAI will sanction a concurrent six-laning because the Kazhakkoottam-Vizhinjam stretch has already breached the traffic volumes that call for it. Next in line is the widening of the equally grid-locked Karamana-Kaliyakavila road, the old alignment of the NH 66. This is currently at the mercy of the State Government, the previous edition of which had proposed a Rs 640 Crore project, but the current administration has not yet allotted even the funds needed for acquiring the land for the project (the Center had earlier sanctioned some funds). The project is facing the usual alignment and land acquisition protests but should be completed with the highest priority. Despite a skimpy 30.2 m width, there is the chance that it could be developed with 6 lanes and should definitely be built according to international standards like the TCRIP roads. Finally, to close out the list of priority regional roads are the MC Road and the proposed Outer Ring Road (ORR). The former has already received a healthy make-over under KSTP but needs to be widened to a full 4-lanes at least till Anchal/Punalur before development solidifies on either side. The latter was proposed under Phase VII of the National Highway Development Program and although NHAI called for consultants to prepare a detailed report, nothing has been heard of it since. This needs to be immediately pulled out of cold storage and put into construction, since land acquisition will progressively get more difficult as the Eastern fringes of the city get more densely populated. Running from Attingal/Kaniyapuram to Venjarammoodu to Nedumangad to Malayinkeezhu and then terminating at Neyyatinkara, the ORR would be upwards of 60 Km long and cost upwards of Rs 1200 Crores. Together with mass transit lines proposed earlier in the article, this road would help speed up the development of these areas and make the city's rapid growth more equitable and efficient.

Between the mass transit system, the NH 66, the MC Road and the ORR, most of the main traffic axes are covered but these need to be supported by an efficient system of secondary corridors - most likely roads with high-capacity bus services. While TCRIP has helped establish an effective set of roads within the Corporation area, the same needs to be replicated on a metropolitan area-wide basis. Roads like Sasthamangalam - Vattiyoorkavu - Aruvikkara - Peyad, Peroorkada - Karakulam - Nedumangad - Vithura,Peroorkada - Civil Station - Mananthala - Sreekariyam, Kovalam - Vizhinjam - Poovar and so on need to be developed concurrently to 4/6 lane widths (not 2/3 lanes as many TCRIP roads were, only to be found wanting as soon as they were ready). Many of these would need to be widened before monorail lines are built along their medians.  Inner city roads like Medical College - Kumarapuram - Nalumukke, Paruthipara - Muttada - Ambalamukke, Sasthamangalam - Pangode - Jagathy - Thampanoor, PMG - Pottakuzhi and so on also need to be developed to 4-lane width with medians, automatic signals, bus-bays, paved sidewalks and streetlights. Some of these have found mention in the current State Budget. A total of about 60 Km of roads that could cost about Rs 300 Crores. Equally importantly, all major secondary and tertiary city roads (read, 2 lanes and up) need to be fitted with sodium vapor lighting - starting with the 6-lane Kesavadasapuram-Pattom and Vellayambalam-Thycaud stretches which inexplicably continue to languish in darkness over a decade after being widened.

Then there is always that usual member of road wish-lists put together by citizens' organizations in Trivandrum, the Kottur/Kallar - Ambasamudram Eastern highway assumes significance as it can reduce the distance to Tirunelveli and the vital NH-7 by over 70 Km. This will help to improve access from Central and Southwestern Tamilnadu to Vizhinjam when the deep-water port opens, helping to expand the hinterland that the port can make use of.

More wide roads mean more traffic, volume-wise and complexity-wise. This calls for better designed intersections and more effective grade-separation. While it took several years for Kerala's first grade separator to be built in Trivandrum, it will be the first of many. Junctions like Kazhakkoottam, Technopark, Anamugham, Chackai, Eanchakkal, Pattom, Kesavadasapuram, Peroorkada, Mananthala, Vellayambalam, Killipalam, Balaramapuram and Kovalam have either already exceeded or will soon exceed the threshold traffic for the use of grade-separators as opposed to signals. Many of these need to be planned along with the monorail system so that there is no conflict later as in the case of the elevated approach road to the New International Terminal which now clashes with the widening of the NH-66.

Where will the money come from? 

Whew! That was a lot of infrastructure development that we talked about, it's time we put a number to all those ideas and the whole concept of a metropolitan transportation plan and system. A Rupee number, of course.

Monorail Line I (Phase I + II)  : Rs 5500  Crores
Monorail Line 2                      : Rs 3000  Crores
Monorail Line 3                      : Rs 6000  Crores 
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Monorail Total                       : Rs 14500 Crores
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Commuter Rail (rolling stock): Rs 600     Crores
New Rail Lines - State's Share: Rs 500     Crores
Catamaran Ferries (PPP)        : Rs 300     Crores

Purchase of 500 LF buses       : Rs 200     Crores

Outer Ring Road                     : Rs 1200   Crores
Arterial Road Improvement    : Rs 1000   Crores
Feeder Road Improvements    : Rs 500     Crores
Construction of 12 flyovers    : Rs 400     Crores
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Grand Total                           : Rs 19200 Crores
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That's a lot, even though it pales in comparison with State's current champion white elephant, the Rs 160,000 Crore Trivandrum - Kasargode bullet train system. Moreover, this cost should be compared to the total life-time economic benefit that it will facilitate. Projects like Vizhinjam, Technopark expansion and Technocity bring in direct and indirect investments totaling over Rs 30,000 Crores and will help generate over 150,000 direct high end jobs in the coming years. Over a 30 year operating period, these projects will generate over Rs 200,000 Crores of direct economic benefit. However, without world-class infrastructure, such world-class projects can operate in an optimal fashion. This means that the investment in infrastructure is a direct input to the economic future of Trivandrum, Kerala and India (Vizhinjam, for example, brings competitive advantages to the entire country's economy). On the other hand, even if the transportation system saves 10 minutes a day in travel time for the estimated 500,000 commuters who will use it daily, that is nearly 10 man-years saved each and every day. A mere Rs 10 saving per day per person in travel costs results in Rs 200 Crores of savings a year. Unlike the proposed budget-breaking investment in bullet trains which may (or may not) benefit a small section of society and will have little or no direct economic benefits, the metropolitan transportation system benefits an entire population (500,000 people a day Vs a few thousand) and adds economic capacity in both promoting mass employment (by reducing the cost of employment that includes commuting costs) and by creating significant incremental cargo capacity (by de-congesting roads and adding new infrastructure).

It's obvious that the State or the city alone cannot pay for the entire investment upfront. Nor would New Delhi shoulder more than a share of the burden. The funding has to be innovative, tapping as many sources as possible and providing incentives to ensure efficient and effective use of the funds. Splitting up the projects and seeking individual funding sources is not only inefficient but is also likely to see just a few projects finding the money with the majority left high and dry. A far smarter strategy would be to bundle up as many projects as possible into an integrated plan and to seek funding for the sum as opposed to each of the parts. This strategy has been successfully followed for initiatives like the Mumbai Urban Transport Project, which is 45% funded by the World Bank. The latter is now placing a high degree of emphasis on urban development as it has realized that cities will be the key drivers of socioeconomic development in the 21st Century. Moreover, it is a multi-lateral development finance institution (DFI) and unlike JICA, will not insist on restrictive sourcing requirements for the projects it funds. Another option is the ADB, which, like the World Bank, already has experience funding urban development projects in Kerala. Since the monorail project needs to approach a DFI and the Central Government for funding its Rs 5500 Crore cost, it may be prudent to roll supplementary projects such as the road improvements and the first commuter rail services into it and seek funding for an integrated Rs 7000 Crore project. As a complete metropolitan development proposal, a much stronger case can be made for DFI funding. Another source of funds would be JNNURM 2.0, perhaps making up for our disastrous performance in getting funds from the first edition. Other than the 65% that would be cumulatively funded by the DFI and Govt. of India, the State can raise its share from some of the following sources:

A) User Fees - Fares on each of the various transportation systems can be maximized with respect to what the market will support. For example, monorail fares can be bench-marked to a level between ordinary bus fares and Volvo fares. Commuter rail fares can be bench-marked to be lower than the comparable local passenger train tickets.

B) Public Private Partnership - While it is unlikely that a pure BOT model will be viable in light of the high capital costs and the constraints on fee-based recovery, a version of the landlord model being used at Vizhinjam could bring in an efficient private sector operator that can maximize revenues from the transit system and pay back the operating costs as well as help the State meet the cost of capital through a revenue share.

C) Tax-based Recovery - In initiatives, such as the development of mass transit systems, where the projects will create incremental economic development, some of this activity can be channeled through appropriate taxes and cesses back into funding the projects up front. 

Let's assume that a monorail line will promote new business parks that make Rs 10,000 Crores of new IT exports. At a taxation rate of 10%, this brings back Rs 1000 Crores to the Government. If we attribute 50% of this back to financing the monorail line, the contribution can help meet the debt service for a loan of Rs 5000 Crores over a 10 year period. This principle, called Tax Increment Financing(because it raises funds on the assumption that the project so financed would more or less directly increase tax incomes) is widely used in the US to finance urban infrastructure projects. A direct application would be to boost the Floor Area Ratios (FARs) for real estate development along monorail routes and around stations, and to charge a fee for the additional FAR. A fee of Rs 100/SF would be minor compared to the revenue/SF but would bring significant benefits to the developer in terms of access to its project. Over the built-up area envisaged in Technocity alone, this would yield Rs 600 Crores up-front. Additionally, real estate taxes on buildings along mass transit routes can be higher since these buildings tend to get higher rents than ones further away. These taxes are an annual income stream that can help finance the transport projects.

D) Transit-Oriented Development - involves enabling high-density, mixed use, sustainable real estate development very close to mass transit stations. Real estate developers would pay up-front premiums or an annual lease for the space, which would help fund the system. However, this may be difficult in densely built-up parts of the inner city where land near stations is already developed. That said, stations on the fringes of the urban core like Pallipuram, Kaniyapuram, Nedumangad, Vembayam and so on are more suited for TOD in terms of availability of land.

It is evident that putting together the funding for such a complex and capital-intensive initiative, let alone managing a massive project that will span 10-15 years and involve hundreds - if not thousands - of contracts, very sophisticated planning, maddening conflicts with existing infrastructure and with land-owners and so many things that cannot even be imagined right now is far beyond the capabilities of the motley crew of agencies that exist today. A MTA is the only solution, firstly to bring all the stake-holders under the same umbrella and then to build the competencies needed to manage the project and to put the money together.

That's the very first step towards a world-class future for our favorite metro. As far as I know, very few Indian cities, perhaps with the exception of select metros such as Mumbai, have fully integrated transportation agencies. If Trivandrum can lead the way in establishing an MTA and an integrated metropolitan transportation project, there is no reason that it cannot be a true differentiator that sets Trivandrum apart from the dozen or so Tier II cities jostling to graduate into the big league. In private discussions with the senior management at several leading global firms looking at Trivandrum as an investment destination, this has been the single major lacuna identified in the city. No reason that transportation could not become our trump card, when it is the pain-point for the likes of Mumbai and Bangalore (no wonder that they are splurging tens of thousands of Crores on it!) and when Trivandrum's evident strengths - such as its world-class human resources, intellectual capital and strategic location - already give it an edge. As much as it seems like a challenge worthy of Hercules himself, it is also a massive opportunity. Let's get cracking!




Technopark - End to End!

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For all of you who want to see how big Trivandrum's technology zone has really become (in real life!) and also for the few who still haven't accepted the emergence of India's newest technology hub.........

Here is a composite of a set of amazing aerials of Technopark Phases I, II and III, shot by my buddy, Sudheesh Nair. 330 acres of IT powerhouse, with over 10 Million SF of space in operation or under construction, with over 300 companies and nearly 40,000 employees.

 (Click for the full-size image, it's worth it!)




Remember the High Court Bench in Trivandrum?

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Does anyone remember the (still ongoing) struggle to re-establish a Permanent Bench of the High Court in Trivandrum? Yes, Trivandrum is still the only Capital of a major State not to have at least a Bench of its High Court established in the city. Yes, many (not enough, it seems) of us have been clamoring for the establishment of the Bench in the Capital for close to five years now, and that's just the latest edition of demands stretching back many a decade! No, the Bench has not been established since the honorable Justices at the Ernakulam High Court do not seem to be favorably disposed to relocating to the State Capital nor are are the hordes of lawyers and Government officials who mint money from having the Court 200 Kilometers away from the Capital in favor of having some of the moolah taken away for such trifling reasons as the public interest. After all, what does that matter?!

For over 2 years, there was a relay hunger strike in front of the District Court, to which I had the honor of chipping in with 12 hours of zero nutrition time. Twice, the State Legislature has called for the Bench which will save anywhere between Rs 50-100 Crores a year for the State Exchequer by eliminating the cost of conducting Government-related litigation, which accounts for the vast majority of cases in the High Court, in Ernakulam.  

If the suspicion till May 2011 was that the reason behind the lack of any evident interest in Delhi for expediting the process was the political misalignment between the State (Left) and Central (Congress-led) Governments, even that last shred of an excuse was removed with the UDF coming to power almost a year ago. Alas, we were wrong, just as it seems we were wrong in a great many things with respect to the current power equation. Not even a peep has come out on this subject from the Secretariat's North Block.

Well, it seems that at least one person in a position of power has not forgotten or forsaken this issue. Last week, Trivandrum' MP, Dr Shashi Tharoor, introduced a Private Member's Bill 'that proposes the establishment of a Permanent Bench of the High Court of the State in any State Capital that already does not have one. The crucial element in the Bill is that the Bench may be created by the President of India if recommended by the State Legislature. It does not need the consent of the High Court, which has been the only thing holding up the creation of the Bench in Trivandrum for so many years. Since every single political party including the Congress, BJP, CPM and CPI backed the demand for the Bench, it stands to reason that all of them should support the Bill in Parliament (unless some State does not want a Bench in its Capital city!). Now, we will have a real chance to see how truthful all those eloquent promises of support really were. At least, we will know if the 20 MPs from Kerala are all on the same page with respect to that usually forgotten reason for which they were elected in the first place, the Public Interest!

A Knowledge City for the City of Knowledge!

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Okay, I admit that this article is being put up to avoid May becoming an embarrassingly silent month on here!! I do have an excuse....I have been in Trivandrum, running around to put together all sorts of deals and such-like. 

In the midst of a seemingly endless bevy of meetings and travel, I did manage to make on minor impression on the path of development in our city. I had the great privilege of meeting Dr Sam Pitroda, the Chairman of the National Innovation Council, and Mr R Gopalakrishnan, the Council's Member Secretary, to discuss the proposal to establish the Knowledge City project in Trivandrum. More on this soon, after I get back to Boston. Cheers!

Presentation to Sam Pitroda

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Wow, nothing...zilch...zip...in June. Which is why I have been forced to be sneaky and post this with a back-date in June! Here's the presentation that I made to Sam Pitroda and R. Gopalakrishnan at the end of May about why the proposed Knowledge City project is best located in Trivandrum.

Knowledge city trivandrum
View more presentations from Ajay Prasad.

(c) All Rights Reserved, Ajay Prasad MMXII

As always, comments and feedback are welcome.

I am working on the next project which discusses the shocking mess around two of the most important infrastructure projects in Trivandrum, a topic that should be discussed and, hopefully, acted upon before it is too late. Stay tuned!

Who needs a World-class Port...and the God of Small Rails!

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In the weeks that have elapsed since my last (honestly dated) post, things have come to a head for two of Trivandrum's most important infrastructural projects. The way that they have been treated, one would be forgiven for thinking that all reason has deserted the higher echelons of power in the State. I believe it's high time that we took stock of what's been happening and apply some logic and sound reasoning to the whole mess.

Who Needs a World-class Port Anyway?

The tenders for operating the $2 Billion Vizhinjam deepwater port and container transshipment terminal were opened in August last year, then more than half a year was wasted in getting security clearance for the bidders - a process which should have taken weeks not months - and one of the two bidders, a 100% Indian company that operates the nation's largest private port, was knocked out. This left the Welspun consortium, primarily civil contractors, as the lone bidder. Since their bid was opened in February of this year and found to require the Government to pay them a grant to operate the port for 30 years, they have been engaged in a back-and-forth dialogue with the Government with the latter wanting the grant knocked off. Although Welspun did lower their grant demand, it seems the project has reached an impasse. With the Government unwilling to countenance a pay-out for its star infrastructure project, it looks likely that Vizhinjam is headed for a re-tender or down the MoU route.

From their conservative approach to the bid, it seems that Welspun doesn't want to risk anything on the operational economics of the project, something that they have no experience with while hoping that the operations contract will give them an advantage in the Rs 3000 Crore ($600 Million) civil engineering contract to the build the port itself (the tender gives the operator a sort of reverse Swiss Challenge right for the civil contract) which is in their core sphere of operations. That said, one cannot blame them for not putting  a lot of expectations on the revenue potential of the project when the project's master consultant, the IFC, itself casts doubt on the same. The consultant and its traffic planner, Drewery, have grossly underestimated the potential of the project, failing to account for potential uses such as fuel (coal/LNG) import and shipbuilding (if we ever manage to locate the proposal by CSL that seems to have gone Missing In Action!), and by assuming very tame traffic forecasts for containers which apparently do not factor in Vizhinjam's strategic advantages (depth, location and operating costs) while considering its competitive potential viz a viz the likes of Colombo, Dubai or even other Indian ports. The saddest part is that no one at VISL or the Government even bothered to question even the most glaring (and common-sensical) issues in the reports BEFORE the bids were called. If they had done so, the response to the bid may have been much better and we may already have had an operator.

Without crying over spilt milk, the most pragmatic thing to do is consider options to try and fix this badly executed bid. First and foremost, VISL should have and can still get the market study re-visited in order to get a better estimate of the true potential of the project. While it may be a stretch to suggest that IFC/Drewery were bent on driving away potential investors from a project that they were supposed to be selling (a salesman spiking his own sale?!), it wouldn't take a rocket-scientist to see that they had done a poor job of promoting what is a very capital intensive greenfield project. If VISL had spent the months in between bid submission and opening on this task, it may have had a great tool to renegotiate terms with Welspun. Even now, it's not too late as a updated study could prove invaluable if VISL goes in for a re-tender or if it tries to identify an operator via the MoU or G-2-G route. Additionally, it would have made sense to ask Welspun to identify and bring onboard a terminal operator into its consortium as soon as it emerged as the lone bidder. The operator would have had a much better idea of the port's potential than a pure contractor like Welspun does or than VISL, for that matter. 

As India's logistics effectiveness slips and it begins to directly and serious impact the nation's economic growth, the market demand for a game-changer like Vizhinjam, which could allow 10,000+ TEU container ships to call at an Indian port for the first time ever, will be hard to over-estimate. Existing ports like JNPT, India's premier container terminal, and even new ones like Dhamra, are struggling to achieve or maintain adequate operating depth. The story with the port at Ernakulam and its much heralded container transshipment terminal's struggles to achieve even a comparatively tame draft of 14 m are now as sad and notorious in the maritime community as they are a clear pointer to why Vizhinjam which already has a natural draft of 18 m is an urgent national need. 

Do we have a Master Plan in the room?

Despite the very evident struggles to find an operator for the port, VISL has pressed on gamely with the work of awarding the civil tender to build the basic infrastructure of the port, such as the breakwaters and the berths, as envisaged in the "landlord" model of development currently in force. Or so it seems.

The argument behind proceeding with this is that perhaps an operator may be more convinced about the project if it is already under construction. However, it is really a chicken-and-egg scenario because constructing a project of this magnitude without inputs from its future operator is a major risk since the construction plan has to meet key requirements such as operating draft, length of berths and so on could prove disastrous. Going by the reports submitted by IFC and its technical consultant, Royal Haskoning, the emphasis has been on cost reduction and not on maximizing the potential of the project. For a port that bases its viability on being able to out-compete other ports in India and in the South Asian region on the basis of its depth and ability to handle 6th and 7th generation container ships, a master plan that limits its depth and capacity to that of existing ports is self-defeating. It's sort of like a super car that's being pitched on its higher top speed but is actually speed-limited to less than that of a school bus! The master plan has been handed over to AECOM, a leading global engineering, design and project management firm and so when they came up with a design a couple of weeks ago, it was no surprise that it didn't exactly inspire a lot of confidence!


Vizhinjam Master Plan; Image Courtesy: The Hindu

It doesn't take a PhD in Marine Engineering to see that there are a lot of elements that are out of place here (although I did get feedback from a  friend of mine who makes a living out of design ports and has a couple of snazzy degrees to back it up!) First and foremost, the second Phase of the container terminal seems smaller than the first, which doesn't exactly inspire confidence in the growth prospects of the project. Phase I needs to have a capacity of at least 1-1.5 Million TEUs and Phase II needs to be similar sized, if not bigger. Secondly, there is a cruise terminal stuck right in the way of future expansion! Yes, a cruise terminal is a good addition to the project and will be a fine boost to the regional tourist industry, if not a great source of direct revenue to the port itself. After all, I happen to know someone who's been talking about the potential of Vizhinjam as a cruise hub for years and years now, including whispering not-so-quietly in VISL's ears.



Moreover, the cruise terminal has been apparently included right in Phase I of the port to assuage the feelings of a section of the tourist industry which believes that it will be wiped out if the project is built (well, in all truth, we are talking about 3-4 resorts located in the area where the port is being built, not some catastrophic decline in the industry but these resorts apparently have a well-oiled propaganda machine and a bunch of "experts" on their side!) The trouble with the location of the cruise terminal is that it blocks the expansion of the container terminal and probably takes away valuable space that could be used for a dry-dock perhaps (well that shipyard proposal is still MIA!). My marine engineer friend tells me that container berths have to be located along the coast because they need stacking areas adjacent to them and hence cannot be built out to sea due to the need for very expensive reclamation (Vizhinjam's advantage of natural deep draft works against it to make reclamation expensive). Hence it's best to devote all available berth length along the coast to container operations and move berths for other uses such as cruise ships and LNG tankers out on to the breakwater side of the port basin. This brings us to the third issue with the current master plan which is the fact that the breakwater itself is so tightly designed that there is no space for a line of berths alongside it. If the image that appeared in the media (above) is correct the basin itself is wide only to accommodate the turning circle for the ships. Now, it remains to be seen whether the turning circle has bend designed with the biggest ships likely to call at Vizhinjam (the 400+ m long Emma Maersk or Triple-E classes of ships) or whether cost-cutting has been the main design input here too. Fortunately, it is understood that Dr Tharoor has intervened with VISL on the master-plan and that discussions on the same will be held soon. What is clear is that unless the port is designed with maximum potential in mind, it will be doomed to failure right at the outset. Yes, this will probably increase the cost by a not-so-insignificant margin (for example, due to the need for a bigger breakwater) but that is far better than spending all those thousands of Crores on a project that is born crippled by an unimaginative design. 

Finally, VISL also needs to take into consideration the need to have an industrial zone for the port and take advantage of the proposed changes in the SEZ Act that allow for smaller and discontiguous SEZs to set up a port-based SEZ (on 100 acres as opposed to the current 250 acres), if not a multi product SEZ (625 acres instead of the current 2500 acres), especially since an SEZ may be a necessity for the container transshipment terminal to receive relaxation from Customs inspections, as has been recently allowed for the terminal at the Ernakulam port.

Vizhinjam's natural potential, to become a port capable of challenging Singapore or Dubai, is undiminished although the development process of the last two years has done it scant justice and it's not too late to reverse these unflattering moves and to recast the project as the superstar that it really is. All it will take is some pragmatic but quick action on the part of VISL and the State and Central Governments and Vizhinjam will be back on track. Let's just hope that someone who can make a change's listening.

(Stay tuned for the concluding part of this article which discusses how "divine" intervention by a certain elderly gentleman is driving the Trivandrum MRTS project round in circles!)

Who needs a World-class Port...and the God of Small Rails! (Part 2)

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It's official, the Government is going to dump Welspun's bid citing the grant that they had asked for to operate the port for the next 30 years. 

On one hand, one wonders why there's so much stinginess at paying out a few hundred Crores when there is no concern whatsoever for splurging over 120,000 Crores of the same taxpayers' money on a white brontosaur of a bullet train project or when there are no compunctions about handing out multi-hundred Crore contracts without even the formality of a bid! Of course, it seems that the regulations have to be followed down to the "T" only in the case of one district, which sadly for its sake happens to be the Capital of the State! That said, considering the fact that the Welspun consortium seems to be extremely conservative in its expectations of the potential of the project and more interested in the EPC contract than in port operations (understandably so, since the consortium is comprised of three civil contractors, nary an port operator in sight!), it may not be in the project's best interests (and not of the city or the State) to hand over a greenfield mega-project which needs an aggressive and capable operator to a half-interested-at-best entity. Of course, the Billion dollar question now is what next? A re-tender is what seems to be the default (and least effort intensive) option for the Government, although a more pro-active G2G effort may yield better results. In either case, the need to update the market study and master plan of the project becomes paramount.

Considering the time taken to reach this underwhelming and anti-climactic conclusion to the latest bid process for the project as well as the reason for the said conclusion, one almost wishes that Welspun had called in the services of the one man who can get anything done in Kerala (from bullet trains flying on magnets to trash disposal), thus convincing the current Government of the need to dispense with trifling formalities such as a bid!

Which brings us to the second project in Trivandrum that is going around in circles (or a closed loop of rails, as may be more appropriate). This ladies and gentlemen, is the much-heralded Trivandrum Mass Rapid Transit System. What, you don't remember it? Well, I can't blame you, the idea's been mired in red tape and in the hyperactive imagination of E. Sreedharan and the lack of imagination of the concerned Minister for several months now, dropping out of the public eye just as quickly as it grabbed attention when first proposed in 2011. Here's the story so far....

About a decade ago, a study conducted by L&T Ramboll on MRTS possibilities for Trivandrum and Ernakulam suggested that an MRTS be implemented in the State Capital. Keep in mind the fact that the city was about half its current size and population at that time, and this was before Technopark, Technopark or Vizhinjam.

Then in 2006, DMRC (or Sreedharan & Co) prepared a report that vetoed an MRTS in Trivandrum and proposed one in Ernakulam, even though both cities were of the same size and population (if at all, Trivandrum was already the bigger Corporation). DMRC recommended suburban rail services.

In June 2009, a Bus Rapid Transit System, believed to be more suited for Tier II cities, was approved in principle in Trivandrum. This sank without  a trace even as cities such as Ahmedabad and Indore successfully implemented it.

After a couple of years of slumber about mass transit in Kerala's biggest and fastest growing city and IT hub, the new Government announced plans to set up a monorail MRTS in Trivandrum and asked NATPAC to prepare a preliminary report.

At this point, E Sreedharan who has abruptly retired from the DMRC and has wrangled a position as advisor to the Ernakulam MRTS project, is of the opinion that monorails are suited only for amusement parks despite hundreds of kilometers of operational monorail-based MRTS in cities across the world.


However, as the feasibility report for the monorail in Trivandrum is under preparation, Sreedharan's opposition to the monorail starts to mysteriously vanish and he starts supporting the monorail project in Kozhikode.

The feasibility report for the monorail project in Trivandrum was approved on March 1st. The 42 Km route stretches from Technocity to Neyyatinkara and is planned to be implemented in two stretches, from Technocity to Thampanoor and then onwards to Neyyatinkara. Although NATPAC pays lip service to feeder bus services, there is no talk about further routes or about an integrated transportation system.


Thereafter, the project vanishes into the depths of the bureaucracy and nothing is heard about it for months. In the meantime, a MLA from Malabar becomes Transport Minister and our Metroman takes over the Kozhikode monorail after smoothly swallowing his avowed skepticism for the technology. 


Soon after, he is found sniffing around the much bigger project in Trivandrum (in fact, in route length and cost, it's the biggest MRTS project in Kerala). Despite the fact that the gentleman had been loudly proclaiming the fact that the capital city doesn't deserve an MRTS and that monorails are meant only for Disneyland, the reins are happily turned over to him in May. The reason? Sreedharan is acting as an "advisor" or a sales agent for DMRC which charges a whopping 8-12% of project cost as its consulting fee or commission! For the Rs 5500 Crore Trivandrum MRTS project, this means anywhere from Rs 450-660 Crores and all without even the pretense of a tender. A tidy sum for a retiree working from the comfort of his wife's house in Ponnani (yes, hundreds of kilometers from any of the project cities!). Not only is awarding a contract of this size without a tender ludicrous, so are DMRC's consulting rates which easily exceed those charged even my global firms such as AECOM, PB or Bechtel. Even more so, since unlike any of these giants with experience in hundreds of projects across the world, DMRC has no experience....absolutely zilch...with monorails.


In the meantime, the formation of the Special Purpose Company that would execute the project, just like VISL does for the Vizhinjam project, has gone nowhere and to add insult to injury, it turned out that Rs 190 Crores allotted for the preliminary road improvements (from Ulloor to Kazhakkoottam) necessary for Phase I had been "temporarily diverted" to the Kozhikode monorail project. Oh yes, and the Minister apparently decided on a whim that the monorail would be extended to Varkala, about 30 Km to the North. At least he can be forgiven for not knowing the difference between urban transit and commuter rail.


And then to add to the confusion, the right honorable Metroman opined that instead of the monorail, the Trivandrum MRTS should be a higher capacity "metro" and not just any ordinary metro, but one that uses magnetic levitation. He even very conveniently lined up representatives of the Korean Hyundai ROTEM consortium to make a pitch on this highly untested technology. Magnetic levitation propulsion is valued for its high speed capabilities but is complex, requiring super-strong magnets to suspend the train above the guide-rail, thus eliminating friction. It has been used on experimental tracks and on a few showcase routes such as from Shanghai Airport to the City Center. With its high speed, maglevs seem more suited for longer distance, city-to-city routes than on intra-city routes, where stations are hardly 0.5 to 1 Km apart. It's common sense that a MRTS train cannot exceed a certain acceleration/deceleration profile to avoid discomfort to its passengers, unless all of them are onboard to enjoy roll-coaster thrills!! In any case, bringing in an untested technology is a sure-fire way to delay the project indefinitely. Sreedharan tried the same trick in the case of his pet project in Ernakulam but was thwarted by the officials in the SPV.


In short, we are in a fine soup indeed! The project doesn't have a working structure yet as the SPV is still in limbo. That needs to be formed first and given a clear mandate, funding and a competent staff (easier said than done!). There is talk of having a single SPV for both the Trivandrum and Kozhikode projects, which is a horrible idea because the two projects are very different in scale, complexity and locational context. It reminds one of the way in which separate SPVs were not formed for the JNNURM buses allotted to Trivandrum and Ernakulam and how funds from the former were used to subsidize the latter and both had to be operated at the same fares, even though the buses in Trivandrum had greater subsidies from the Central Government and hence a lower cost of operation. No, we need separate SPVs for the two projects.


And the SPV for Trivandrum should be given the freedom to choose a competent consultant or consultants, not have any agency stuffed down its throat because a celebrity advisor comes free with it. 


A) The SPV needs to bring on board management consultants to understand the best development model for the project. Currently, pure Build-Operate-Transfer has been mooted, which is unlikely to work for a public transit system and that too in a Tier-II city. Other options such as the hybrid landlord-operator model being used in the Vizhinjam project or the public funding + development institution debt model being used in Delhi, Chennai or Ernakulam need to be considered. With JNNURM-II promising financial assistance for MRTS systems, this is much easier than before. And anyways, why would the State Government only use tax-payer money to pay for one city's MRTS and expect the private sector to pay for the other two. As we like to say in Kerala, everything should be equal, right?


B) The SPV also needs to float a global-tender for technical consultants with actual experience in various MRTS options such as monorail, light and heavy rail systems to first of all conduct an independent study on the best choice of technology for Trivandrum as well as to revalidate the traffic study, with a view to create a multi-route network.


If Sreedharan & Co are left to their work, we will probably end up with a Find-Replace-Copy-Paste version of the report they prepared for some other city in the past, with Trivandrum suitably inserted. DMRC did precisely this for the much-trumpted initial report for Sreedharan's other pet idea, the bullet train, where the report had clear traces of having been "adapted" from the project report of the Jaipur Metro! With his obvious focus on the Ernakulam project, it's most likely that Trivandrum will languish in the files indefinitely. Moreover, the skeletons are beginning to tumble out of DMRC's cupboard, the biggest one thus far being the shutting down of the flagship Delhi Airport Express line because of a drastic failure in construction executed by DMRC, including the failure of no less than 91% of the critical bearings that support the line itself on its support piers. While this glaring and potentially lethal failure in construction was detected by the line's operator, Reliance Infrastructure, one hopes that more dangers do not lie hidden along the rest of the Delhi Metro network. It may be recalled that the Comptroller and Auditor General of India had harshly criticized DMRC's quality control measures in a 2009 report, a report that the Government managed to stop from being tabled in Parliament. Shortly after the report was made, one of the deadliest accidents to hit the Delhi Metro had seen an entire span collapse, killing five people, one of many accidents in the project, that resulted in a total of 109 deaths in Phases I and II alone. When one begins to consider disturbing facts like these, the facade of invincibility around DMRC vanishes very, very quickly. 




Span collapse - July 12, 2009 Courtesy: The Guardian, UK


And this is the agency that we want to trust blindly with a technology, namely monorails, that it has no experience with?! With all due respect to E Sreedharan, one cannot depend on just a single individual, even if we ignore the fact that he is pushing 80. What happens if this individual is not able to perform his duties for whatever reason, will DMRC be abruptly replaced or the project terminated, after spending thousands of Crores of public money?


That said, the scariest part is that this Government has committed itself to a plethora of massive infrastructure projects - the Rs 8000 Crore Vizhinjam port, the Rs 5500 Crore Trivandrum MRTS, the Rs 5000 Crore Ernakulam MRTS, the Rs 3000 Crore Kozhikode MRTS and the Rs 2000 Crore Kannur International Airport, not to mention the grand-daddy of white elephants, the Rs 120,000 Crore bullet train! The awful realization must be starting to dawn in various high places that these projects, even after excluding the bullet train fantasy, would need the State Government to pump in close to Rs 10,000 Crores as direct investment in the next 3-4 years if all of them enter construction. Which is a lot more than the shaky Treasury can afford! The State's debt load just hit Rs 87,000 Crores (well over 70% of annual GDP!), having soared by over Rs 10,000 Crores or over 14% since the current Government took office in May 2011. So, I suspect that the current strategy may be to slow-pedal some, if most of the projects, so that the ones that have the right political backing will get whatever limited funding there is. The rest, well the rest can wait for better days. And anyone who understands the current political clout of the capital, or rather the evident lack thereof, would not bet on Vizhinjam or the Trivandrum MRTS being anywhere but at the bottom of the priority stack. Maybe that's why re-tendering in the case of the first and testing out new technologies for the second are very convenient indeed?!


The one thing that is clear - neither of Trivandrum's so-called "dream" projects is making any real progress. Without urgent, strong, pragmatic and pro-active intervention from its elected representatives and the general public (no, I am not calling for a lynch mob, not yet anyway!), it's unlikely that any progress can be expected any time soon! 


Especially not unless our legislators and Government can find more to agree on besides this!!!

Open Letter to Ye Who Stop Formula 1!

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To all those who filed the Public Interest Litigation against Narain Karthikeyan's Formula One demonstration drivein Trivandrum,

First of all thank you for the immense concern shown in upholding the letter, if not the spirit, of the law on speed regulation on the roads of Trivandrum. If it had not been not been for your timely intervention,surely the citizens of Trivandrum would have been put in grave danger by speeding Formula One cars, after all aren't those things dangerous even if driven by an expert driver and even if the roads are cleared and secured?! Even if we are not run over, we would be all so inconvenienced by the disruption of traffic on the road. Who cares if the Formula One demo drive would have gained national attention and perhaps garnered a few measly extra tourists. A State like ours that can afford Billion dollar bullet trains doesn't need extra revenue from tourism, does it? Of course not, the 40 Km/Hr speed limit is sacrosanct, a true holy cow!

Even if some may call such activism Personal or Publicity Interest Litigation, we appreciate the Public Interest behind your actions. Now, in case, you are on the lookout for worthy, if not equally important subjects, to file further PILs, here are a few which may benefit the rest of us:

A) Why hundreds of Crores of taxpayer money has been wasted thus far because the honorable High Court does want to take up a demand expressed unanimously (twice!) by the elected Legislature of the State to establish a Bench of the Court in the State Capital in order to avoid unnecessary expenditure related to litigation involving the State Government?

B) Why successive Governments have placed the State's most important infrastructure project, the Vizhinjam deep water port, far from the top of their agenda and why the most recent bid process took a lazy 12+ months to move through its evaluation and approval even with a bevy of Kerala ministers at the Center?

C) Why is no action being taken by the State Government to resolve the waste management crisis in the capital which puts the health of two million people at grave risk and has probably put hundreds into the hospital, if not into the grave? This despite a clear directive from the highest Courts in the land to resolve the crisis, by force if necessary?

D) Why are contracts worth hundreds of Crores being handed out without tender in the case of projects near and dear to certain parties in the current Government when critical infrastructure projects like Vizhinjam, the Karamana-Kaliyikavila road and so on lie idle for want of funds?

E) Why are a dozen MLAs heading on tour to China to study the "model of development" in a totalitarian regime, which gives no property ownership rights and which prints its own money, when there is apparently a paucity of funds to buy modern fire-fighting equipment even in Kerala's biggest cities?

Oh yes, and please include these too:

F) A PIL against every political party under the Sun for openly flouting directives issued by the High Court and Supreme Court against gatherings along public roads and for disrupting public life. (You can start with this one and do make sure your full name and accurate addresses are provided in your PIL - since you are no more concerned about the local cadre of the aggrieved political outfit paying you a friendly visit as you are about aggrieved F1 fans)

G) A PIL against the blocking of traffic for any religious event or community gathering. After all, we shouldn't disrupt public life be it for Narain Karthikeyan, Vishnu, Jesus or Allah! Oh yes, no blocking traffic for Dr Manmohan Singh, Pranab Mukherjee or Mitt Romney either.

F) A PIL against any VVIP car or escort going over 40 Km/Hr within city limits unless there is a real emergency, which excludes coffee breaks, inauguration ceremonies, free lunches at marriages et al. Not to mention, the unmarked luxury cars and SUVs that seem to be speeding about the roads of the capital with police escort these days!

....and maybe one against the Monsoon for cheating of us of our god-given Right to Rain, threatening our power supply and drinking water, while you are about it.

Do let us know if you would like white paper (or legal sheets), pens, inks, stamps or tongues to lick those stamps, we will all be glad to chip in.

Yours Thanksfully,

The Adoring Public whose Interests you have Litigated for!

If any of you folks who read this know the gentlemen who care more for maintaining the 40 Km/hr speed limit in Trivandrum than anything else in the world, please show this open letter to them, tweet it to them, email it to them or take a print out and stick it on their front door!

Seriously, if this is the most important issue worth filing a PIL for, then perhaps I am writing about a Trivandrum in a parallel Universe, where Vizhinjam is the world's busiest port, we have 300 Km of operational monorail lines and honey/beer runs in the gutters! 

Sadly, the Tourism Industry that would have benefited the most (other than the purveyors of street food along the route of the demo drive, wait, we exterminated them along with shawarma!) should have been up in the arms to ensure that the event happened, unfortunately they are too busy trying to sabotage the project that would deliver upwards of 60,000 high-paying foreign tourists every year to them. As for the honorable Tourism Minister, he is in Kashmir - probably busy researching how to "promote tourism"! With no help in sight from the Government, the HRT F1 car is stuck in Frankfurt and will not reach Trivandrum for the drive.

Fear not, we may get a demo with a bunch of toy cars or perhaps Narain can chauffeur VVVIPs for Emerging Kerala. Hats off to him and his friends who made a brave effort to showcase Kerala on the world stage, but it looks like we would rather preserve the sanctity of our speed limits!

Did Kerala Emerge?

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The State Government's massively hyped investment promotion event, Emerging Kerala, recently concluded leaving behind a plethora of questions about its success and likely impact on the State's future development. While reactions to the event have been passionate and in some cases furious, both partisan and non-partisan, here's my take on it both as a (self-styled) development activist and a participant of the event.

The Event

Ever since it was first proposed in 2011, Emerging Kerala has been igniting passions, for and against it. That much is clear. The Government had initially portrayed it as a sort of one-shot-fixes-all solution to what is widely perceived as a lack of interest among investors to put their money into the State. The first memory that came to the mind of most observers of the event would have been that of the Global Investor Meet, held by the previous UDF-led Government in 2003, that ultimately was a washout in terms of converting its lofty promises of investment into actual projects.Although "Emerging Kerala" was first proposed as an investor meet to solicit investments in the State, the Government later distanced itself from the concept and re-labelled it as an investment promotion event that would build awareness of Kerala among investors and also bring together thought leaders and business stakeholders to generate ideas about how to build the State's economy. Call it a climb down or expectation management, but that's the official line.

The event itself would be spread across 3 days and would include a series of plenary sessions that would discuss key concepts in the development of the Statesuch as Public Private Partnership (PPP) and the Kerala Development Model, sectoral presentations for each major sector such as Ports and IT and a large number of Business-to-Business (B2B) and Business-to-Government (B2G) meetings intended to promote investment activity. Oh yes, an exhibition and "cultural programs" thrown along with the all-important free lunches and dinners.

So how did it go down?

The Good

Given my standard left-of-center leanings and generally critical attitudeof how the development agenda of the State has been run over the past couple of years, you'd forgiven for expecting a harsh appraisal of the goings-on from September 12 to 14, but that's not the intention here. There have been some genuinely positive developments that should not be lost in the sea of (often deserved) criticism.

First of all, there are a couple of interesting developments that I would like to call out and appreciate. The first is the promise to expedite the establishment of a Kerala Maritime Board and to promote water transportation via coastal shipping and inland waterways. With over 600 Km of coast line, two major ports (Ernakulam and Vizhinjam) and over a dozen minor ports, not to mention the unique geography which places most of the population within 50 Km of the coast, Kerala is a perfect case study for water transportation. So, to say this move is long overdue, is an understatement. 

The other is the proposal to have a Kerala Investment Board, which would be sort of a single window clearance mechanism for major projects. Kerala's had a checkered history with the single window process, with some notable success in the case of Technopark, but generally precious little else, giving rise to a popular joke that this only helps in hearing "NO" from one window as opposed to many! That said, instead of having Clearance Boards for each sector, it'd make sense to concentrate resources and expertise into one entity, making things that little bit easier for investors. The Board should also be a pro-active investment promotion agency as opposed to a passive approval mechanism. And it should be nimble while still retaining authority to grant sweeping approvals. 

The number and diversity of speakers, ranging from Adi Godrej to Som Mittal to our very own Kris (Gopalakrishnan), and diplomats that attended the meeting was not only very impressive (thanks in no small measure to CII, that was the event's co-organizer, no doubt!) but could also pay long term dividends if at least a few of these luminaries took home a favorable impression of the State, as was the case with the NASSCOM summit organized in Trivandrum last year, where the attendees were so impressed by the Capital city that some came up with firm investment proposals in Technopark.

An aside, but let me spend a minute on the remarks by the Deputy Chairman of the Planning Commission of India, Dr Montek Singh Ahluwalia, which I had the opportunity to hear with my own ears. He opined that keeping in mind Kerala's evolution as an economy, that is now far more concentrated in the Service sector than in Agriculture, it may make sense for us to stop clutching only at inherently paddy cultivation and to embrace higher-value crops that make better economic sense from the point of view of Kerala's high cost of cultivation and scarcity of land. He got duly roasted at the spit and nearly burnt at the stake for that heretical suggestion. Reading the collective onslaught detailed in the press the next day, I wonder why it's so offensive to suggest that an activity that's clearly no longer economically viable in Kerala should be prolonged for mere sentiments' sake? Without employing cheaper labor from other States, the only option is mechanized farming but even that seems doomed unless the necessary scales of economy can be reached which is difficult considering the paucity of arable land in the State. Maybe it does make sense to concentrate on our strengths, which in the case of agriculture could be high-value crops and value-addition in the food supply chain. Kerala's already a leader in this, with exports in sea food, spices and tea. There's no reason that the State should force its farmers to struggle with a product that cannot pencil out with our cost base. In an open market, the most economical producers are the natural choice. In the case of rice, that's not Kerala. This is already the case for the vast majority of our food supply. While it's disconcerting to note that a lorry strike or tiff with our neighboring States could literally put sand in the soup (or cockroach in rice gruel, as the local version goes!), it wouldn't be extraordinarily naive to expect reasonable security within a reasonably functional Indian Union! Imagine if the folks in Chattisgarh or Rajasthan wanted security in their seafood supplies!

Last, but not the least, I believe that the dozens of B2B and B2G meetings that happened will generate some tangible investment proposals for the State and will pave the way for a more institutionalized B2B and B2G "market" in the State, which can be a continuing dialogue rather than a one-off event. 

There was one particular meeting on the sidelines of Day One, of which I had the privilege was part of, with Dr Tharoor chairing it and the attendees being the senior management of VISL and a top representative of AECOM, the master plan and project management consultant for the Vizhinjam project. More on that later, stay tuned!

And Now...the Bad

Emerging Kerala's legacy has already been cast in a seemingly never ending series of criticisms or gaffes, ranging from suspicions of land grabbing, to environmental degradation, plagiarism of the event's logo (or "creative inspiration" as Anu Malik would call it!) and down right falsification of investment proposals, the most notorious of which is the Rs 2000 Crore VW plant that never was. But I don't want to talk about those, the media and the social networks having quite comprehensively highlighted the cases of the Emperor's new clothes.

My first and major grouse lies with the purpose of the Meet, or rather the lack of an evident one. If one espouses the "Investment Meet" angle, I'd start with the three key factors necessary for active investment in any markets.

A) Attractive Projects: Let's make it short, projects that provide an attractive return (KSIDC, please note: an Internal Rate of Return (IRR) of 3% will NOT attract investors!!!), are relatively straightforward to execute and provide some competitive advantage.

B)Capable Investors: With expertise in the field concerned, a proven track recordand preferably, well capitalized with a serious interest in the projects on offer.

C) Conducive Investment Climate: An often abused term, I would define this to include among other things, a supportive public policy framework - which encompasses everything from regulatory support to financial and non-financial incentives, a favorable impression amongst investors and adequate resources - intellectual and monetary - on the public sector side necessary to act as an equal partner with private sector giants.

It would be instructive to score Emerging Kerala on these parameters and see how it stands on each.

On the matter of projects, one cannot fault the organizers for having too few. In fact, it was quite the opposite, with everything under the Sun from comparatively tiny "agro processing projects" to the Rs 1,50,000 Crore bullet train on offer side by side. Quantity comprehensively won over quality, with few if any projects being well laid out. Even the biggest projects on offer - the Trivandrum and Calicut monorails, the bullet train, the Life Sciences Park, Technocity and so on - had no promotional material or project reports available online - either at the Emerging Kerala website or in their host departments (whatever those be!). Except for that copy-paste DPR for the bullet train, that is!VISL did come come up with a compact brochure, but that was at the Event itself by when it was too late to attract any potential investors to attend it. I got the impression that the actual implementing agencies, such as VISL, were being kept at arm's length by the nodal agencies of the meet and hence there was a pronounced lack of clarity about the projects in question. Some projects were lucky to have a few slides or pages uploaded about them, most had none. All in all, the meet should get a F for homework! 

Some of the best management consultants out there had been roped in to prepare presentations for each of the sectoral presentations (I attended four - Ports, IT, Energy and Infrastructure) and none did a sterling job of selling the respective sector, with most of the slides being rambling descriptions drawn from other studies and tired management frameworks. Maybe they weren't well paid or may be the folks in high places didn't want their thunder being stolen by the hired help. Pity, either ways! If at all, these presentations and studies should have been made available BEFORE the event not during it, in order to stoke interest among potential customers.

Even the comparatively few private project proposals that were available in advance were very short on details. And while this cannot be directly attributed to the organizers, it would have made a lot of sense for them to do a sanity check on each proposal before it was made available to potential investors, or better still, have provided a project proposal template that each proponent should adhere to, to ensure quality and uniformity. This creates a sense of professionalism and seriousness as far as potential investors are concerned. The multiple private investment proposals that I received, despite their sincerity of purpose, left much to be desired in terms of their content and focus.

In the end, out of the 40-odd investment proposals that the Government received at the end of the event, none were for the projects that were proposed at the beginning of the event. Most of the incoming proposals were real estate related, a fair number already floating around before the meet and very few, if any, were from non-Keralite/non-NRI entities. For example, out of the 32 projects proposed in Trivandrum district, none found investors, while the 5 major proposals including a Rs 400 Crore pharma plant by Terumo Penpol that were put forward by investors were not on the initial list at all. 

Moving on to the question of investors, anecdotal experience doesn't paint a very rosy picture either. Out of the 2500 odd "delegates" at Emerging Kerala, reviewing a small, random sample of profiles showed that the majority were individuals, "consultants", teachers and even management students. Without disparaging the importance of small entrepreneurs to the economy, one would feel underwhelmed at the attendance and the potential for investment therein. It may have been a better strategy for the organizers to vet each prospective delegate, in terms of their background and intent, before officially registering him or her. The surge of attendance just before lunch and dinner and the crush at the doors (reminiscent of the surge towards the dining hall at weddings!) when lunch was announced at the end of the inaugural session make one suspect that the priority for not a few of the delegates was not investment but culinary in nature. Even where corporate delegates were present (most likely thanks in large part to CII and NASSCOM), they were far more interested in business opportunities related to contracts likely to be handed out by the State Government, than in investing in the State via PPP channels. Case in point, the interest shown by UK firms in the Vizhinjam project was in the area of the construction contract not the operations of the project where PPP is envisaged. I spoke to the representatives of one of these firms, a leading global engineering and construction company, and they confirmed that their interest was in the Rs 4000 Crore EPC contract, not in the port itself, despite the fact that they have a large BOT/BOOT portfolio. Right project but the right type of investors were missing.

Once again, it's the lack of focus evident across the event that comes to the fore here. A glaring example is that the Rs 8000 Crore Vizhinjam deep sea port and container transshipment terminal gets the same one page on the Ports department's brochure as a comparatively tiny houseboat project! While each sector of the economy deserves its share of attention and the appropriate set of investors, combining all types of investors in the G2G, B2B and B2G arenas in one event makes no sense at all. In typical Pareto fashion, a small number of key projects will account for the bulk of the investments in the State. Similarly, only a small number of investors are appropriate for such projects. These large projects not only create significant impact through the direct effects of investment in them, they typically also have an outsize effect through indirect systemic benefits (as in the case of Vizhinjam) or by promoting a  better image of the investment climate (as in the case of Technocity/MRTS). When the main aim of Emerging Kerala is to foster an positive image of investment and growth in the State, the success of a few key projects will go a lot further than a plethora of minor ones. We can have dozens of small and medium-scale real estate projects coming together, but their impact will not even be close to that of a deep water port, as far as prospective investors are concerned because the latter makes a strong statement on how investment friendly the State is. With all its road shows and Crores in ad-spend, it seems that Emerging Kerala was not very successful in bringing in investors relevant to the State's flagship projects. Wherever a key decision maker such as the head of an industrial conglomerate such the Godrej or GVK Groups attended the event, the reason was to make a speech (usually as an office-bearer of CII) than to pay any serious attention to the investment opportunities in Kerala. It'd have worked out much better, if the State had identified a small number of key projects, worked out who could be the best set of potential investors for each and then engaged at a top management level with each. Instead of fancy roadshows at expensive hotels which are little better than photo-ops, one-on-one discussions with investors at their offices would have yielded much more tangible results. Why? Because it's our need, not theirs, and we have to go the extra mile! That's why!

And last but not the least, how about the conducive investment climate score? The "hartal" on the day after the event closed notwithstanding, the fact that the State's Industrial, IT and Labor policies were gathering dust even as the event went ahead is a pretty damning indictment of the lack of a policy support for the investment promotion initiative. Add to that the fact, the Kerala Maritime Board and a slew of other support initiatives were given lip-service at the event rather than being put in place in advance.It'd have generated a lot more confidence amongst investors if the State had checked those boxes in advances and was able to say that "we have done our bit, now's your chance" rather have each Minister promise to do a lot but have precious little to show till date. As the ol' saying goes, talk's cheap and actions speak a lot, lot louder than words, especially when those words in question concern policy promises from a shaky coalition Government. I have one more pending action to add to the list of "will-dos", putting into practice the lengthy recommendations of the High Power Committee to Expedite Major Projects, that was set up by the previous Government to study reasons for delays encountered by major projects like Vizhinjam and to suggest policy initiatives to avoid these going forward. Sadly, those have been gathering dust too, for the last two years.

With the vast majority of the investment proposals received in the real estate development sector, there are a couple of other issues  clouding up the investment climate (pun intended) - the fact that the State has been sitting on a proposal to amend the Kerala Municipal Building Rules (KMBR) to include changes such as a higher FAR (Floor Area Ratio - a measure of density, it governs how much area can be constructed per square foot of land area) and that none of the urban areas of the States, including Trivandrum, Ernakulam and Calicut, have a proper urban area level master plan that is necessary to shape and foster sustainable and inclusive growth. While there are proposals in place at least for Trivandrum and Ernakulam, it's uncertain whether state-of-the-art urban design and regional planning paradigms have been used in their preparation, given that the exercises have been all-Government affairs involving various departments of the State Government and the concerned local bodies but no external experts, academic or industry, as far as I know. Moreover, it's very doubtful whether they encompass the entire current and future urban agglomeration in each city's case and it's very likely that they will be made out-of-date by the rapid urban growth in Kerala even before they are notified and made "official". After all, the current plan for Trivandrum dates from the 80s or the 60s, don't remember which, but way before there was ever a Technopark or a Vizhinjam!! The combination of uncertainty at a urban design policy level and at a master plan level will significantly slow down the pace of real estate development, a sector that could be central to economic growth in Kerala.

The one bright spot at the end of this entire....ahem...circus... is the fact that it may not be a one-off like its failure of a predecessor, but may be held as a biennial event. While it'll be unrealistic for much to evolve out of this edition, other than a bunch of real estate projects that were anyway in some sort of motion before the event, I'd hope that if nothing else, the learnings from what didn't go right will be incorporated into the next edition, if there's one. Since 2014 will be the fag end of this Ministry, it'd be dicey to see if the momentum built up now will still be around, especially after what is shaping up to be a brutal General Election that year.But if things do shape up for one more go at an event of this type, a few key things could help the organizers pull off something better than they did this time - fewer investment proposals with far more robust pitches for each, a better screened and selected set of investors and a clear policy framework for investment promotion put in place well before the event. In fact, if the Government does its homework between now and then, there may be no need for a fancy event at all, the investments will flow in without any ado. 

But then who doesn't like a free lunch and few photos on the front page?!

A Vision for Vizhinjam: Crowdsourcing an Improved Project Plan

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Over the last few months, the saga of Kerala's flagship infrastructure project - the Vizhinjam deep water port and container transshipment terminal - has wound a new stretch in its long running and tortuous route - losing its lone bidder for the what would seem to be the coveted position of port operator and then getting met by a propaganda offensive by a vested interest lobby consisting of a few small resorts in the project area who are hiding behind environmental and social concerns to ensure that the nests are not disturbed even if it means sabotaging a multi-Billion dollar project that would benefit the entire nation. 

The current Government's performance on what should be their top priority in terms of developing world-class infrastructure has been lackadaisical at best, with nearly a year elapsing between the receipt of two financial bids and the opening of the same, more months dragging along as the Government vacillated about accepting or rejecting Welspun's bid that demanded it be paid to operate the bid and for its limp response to the audacious assault by the resorts, one of which apparently has not-too-subtle links to the powers-that-be. Today, there is profound confusion as to how to proceed, with the crucial element of the project operator still very much amiss. Add to that the fact that the market study and project options report prepared by the UK consultant Drewery and the project's principal consultant, the International Financial Corporation (IFC) were gross under-estimations, at best, of Vizhinjam's potential and, at worst, near criminal manipulation of reality. In short, it looked like the bases were heavily loaded against this dream project. On this, a lot of people were in agreement. On what, if anything could be done about it, there were a lot of differing opinions, I am sure, most tending towards a shrug of the shoulders and resigning ourselves to the tender mercies of foreign port operators and not-so-foreign envious powers.

On the other hand, we can pause before shrugging things off our shoulders and put up our hands to provide inputs to improve the project's current dismal lot. Of course, there are two key elements to create an effective intervention in a project of this magnitude. First, bring together people who have relevant knowledge and experience, and equally importantly, a passion to contribute. Secondly, and just as critical, is to have a way to cut together the usual frustratingly opaque and impervious bureaucracy that controls public projects and to get attention at the highest levels. 

In the case of Vizhinjam, the first part started to come together when a friend of mine and fellow CET alumnus, Deepak Benny, who has now specialized in port design since his CET days, contacted me with a number of suggestions that he had about improving Vizhinjam's design. Soon we combined forces with a long-time friend and co-conspirator of mine (again of the ol' Kulathoor tribe, a'la Royal Mexx circa 1993) - Hari Gopinathan, a well-known gent at the HQ of tech giant Oracle Corporation. Despite having only a third of the combined neurons qualified to talk about marine structures with any confidence, we put our heads together to come up with a focused set of improvements on key aspects of the project - the master plan, the business concept and the way ahead. Crowd-sourcing is much more commonly used to crunch numerically intensive problems and R&D challenges but this was as worthy an application as any. The second component, the delivery/intervention mechanism is equally, if not more, important to the success of the initiative. In this case, the answer was obvious, reach out to the one Director of VISL who could and would assimilate our suggestions and put them into action. No prizes for guessing that I am referring to Dr Shashi Tharoor. Having collaborated with Dr Tharoor on many an initiative to benefit Trivandrum, including facilitating the arrival of Oracle into Kerala's capital city (that's a whole other story, which will await a detailed account at another time), we resolved to pitch our suggestions to him.

Three Focus Areas 

Reviewing the nearly 800 pages of bid-related documents from Drewery, IFC and Royal Haskoning uploaded by VISL, and the initial master plan put out by them based on the rather conservative recommendations given by the trio of consultants, we identified three key areas where a quick intervention was needed to ensure that not only was the project's potential was maximized but that a capable operator could be attracted sooner rather than later.
First, it was essential to take a fresh view on the potential of the project. Drewery's predictions were rather meek, to put it mildly. They essentially predict that Vizhinjam will jostle with the crowd of existing Indian ports rather than take the fight to regional hubs such as Colombo, Dubai, Salalah and Singapore despite having superior draft, strategic positioning on the main shipping lanes and direct access to the rapidly growing Indian market. Drewery would have us believe that even after offering massive discounts to the tariffs at Colombo, Vizhinjam would capture but just a fraction of its business. Moreover, it blithely ignored the fact that shippers seek the most efficient and cost-effective supply chain, so if Vizhinjam offers a faster, better and cheaper way to reach Asian, European and American markets by attracting mainline ships, cargo currently using other South Indian ports could easily shift to Trivandrum. Finally, Drewery had completely played down the potential for other types of cargo such as energy import (Vizhinjam is ideally located with respect to the most important sources of coal and natural gas in the region - Australia, Indonesia and South/East Africa), cruise traffic and the potential for a deep water shipyard (citing a rather dubious need to make the port "green and clean"!) Our approach was to be bold, to try and maximize the potential of the port and to identify the ways and means to achieve that. While our rudimentary approach is admittedly far from what a Drewery could do, it was based on simple concepts of logistics and market economics. More on this later.

Second, we looked at the master plan released by VISL in early July 2012. Taking direct input from the recommendations of the project consultants, whose focus seemed to be cut corners at the expense of giving the project the tools it needs to compete with regional hubs like Colombo and Dubai - deep draft, adequate berth length and basin size/turning circle radius (all necessary to accomodate the biggest container ships around, like the current Maersk E-class or the upcoming Triple-E class).

Image Courtesy: The Hindu

By shrinking the port's basin and positioning the breakwater close to shore, the plan virtually eliminated the possibility to have a second line of berths located on the other side of the basin along the breakwater. Since the project has limited quay length along the coast (due to populated areas North and South of the site), the only way to expand it would be to build berths along the breakwater. Locating the cruise terminal at the end of the Phase I container terminal would hinder further expansion of the container facility.

Third, it was evident that the Government needed to change the game-plan for the project if it was to get off the drawing board. Rather than focus just on the port itself and expect the best of the best among port operators to form a line round the block to run it, the Government needs to expands its horizons and look at the enabling infrastructure and policies, as well as to build more demand drivers for the port through the establishment of logistics zones and a port-based power plant, for example.

Part 1 - The New Game Plan

After many a deliberation, over the phone and, more often, over email, even more hours spent researching unfamiliar subjects ranging from marine engineering to gas turbines, and even, even, more cups of coffee, a coherent vision document emerged which sought not only to correct some of the issues that we perceived with the port's concept and design but also to provide what we hoped were innovative and game-changing solutions to make it a premier, world-class facility set up to succeed. The easiest way to get the message across was deemed to be that trustworthy tool of the ilk of Mitt Romney (ahem....management consultants and PE bandits, that means you!) - the Power Point presentation. And here it is, for your purview and critique, ladies and gentlemen.


I do hope that all of you will take the ten minutes needed to run through it with the level of detail that will enable you to appreciate how complex this project is and how rewarding it can become. The slides are pretty self-explanatory and I will pretend that we understand all of it any better than you do. However, let me take the liberty of pointing out a few key ideas to exemplify the line of thinking that went into the document.

Right at the beginning, on Slides 3 through 5, we have sought to demolish the rather under-assuming, almost apologetic at times, market assessment of Drewery and IFC, with a more bullish outlook based on the project's inherent and undeniable strengths. Next, on Slides 6 through 11, we identified four key pillars on which the project should be built - its Strategic Location, its Global Scale, Globally Competitive Operating Costs and the potential to be a Gateway Port to the whole of South India (as opposed to just a narrow strip between Tuticorin and Ernakulam, as Drewery espouses!). Slides 12 through 15 discuss non-container uses at the port, namely LNG import, cruise traffic and a deep water shipyard, which found scant mention in the original market report.

Next we get to the section that discusses improving the master plan, explained in some detail in Slides 16 through 19, focusing on what we call, in typical Vegas fashion, an "All-In" strategy that seeks to swap the cut-corners, minimalist design out with one that provides the facilities that can maximize the potential of the project and position it as a unique facility that can accommodate bigger, (and consequently) more efficient ships than any other Indian port at a similar distance from the shipping lanes. This includes expanding the terminal's capacity right from Phase I, moving the cruise terminal to the breakwater and expanding and deepening the port basin.

The next couple of slides are devoted to suggesting simple modifications to the Landlord Model of port development, that seek to simplify the picture for a private operator while improving the State's payback from the project for the $700 Million that it will invest in Phase I's marine and landside infrastructure.

Slides 22 through 28 focus on the infrastructural and policy support that the State and National Governments have to provide in order to ensure that this project vital to the national interest, succeeds. These include creating adequate road and rain connectivity to ensure that cargo unloaded at Vizhinjam can reach as far as Hyderabad in 36 hours or less, which calls for an average travel velocity of just about 40 Km/Hr (not a tall order if you have relatively congestion-free rail lines or a 4 lane highway all the way, which as we know, is definitely not the case at present, at least till we hit Kerala's borders!) There's a lot that New Delhi can do, such as funding the road and rail improvements and ensuring that the much deeper and better located Vizhinjam gets the same policy support, such as Cabotage exemption, as the container terminal at the port in Ernakulam recently did. Being a State-project and structured in a way such that the Viability Gap Funding option is unlikely, Vizhinjam will most benefit through direct support from the Center, as described above, as soon as the Center figures out that rather than pour money into its "Major" ports, most of which are now becoming uncompetitive, it should focus on strategically important ports like Vizhinjam that can actually further our nation's interest by weaning Indian cargo away from foreign ports like Colombo and Dubai. For example, the port at Ernakulam needs hundreds of Crores of dredging each year to achieve and maintain a draft of 14 m (which it has failed to achieve even after three years of dredging), whereas Vizhinjam has a natural draft of 18 m from day one! The same advantage is held by other new ports such as Mundra, Pipavav and Gangavaram. 

We conclude with a brief suggestion on the immediate way forward that VISL and the State Government need to pursue - essentially to complete the master planning process, the Environmental Clearance process and simultaneously try to identify and engage a world-class port operator, even as the tender process for the massive construction contract also moves forward. After a couple of discussions with folks in the Indian ports business (working with two of the biggest port developer-operators in the country), it's pretty evident that the best choice for operator would be one of the leading global players, ideally one with a tie-up with a major container line. Of course, the option # 1 is AP Moller Terminals, the terminal operating arm of the APM Maersk group that also operates the world's largest container ship fleet, that includes the biggest class of ships in the world. APMT already operates a terminal at Pipavav and another in Colombo, but may be looking for a deep water port in South India close to the main shipping channel. Vizhinjam fits the bill perfectly.

Part 2 - The Right Channel

Prior to all the detailed deliberations and to preparing this slide deck, we had raised the alarm with Dr Tharoor, as soon as the first VISL master plan became public. It was a natural choice to reach out to him, not just because of his ex officio roles as the MP and a Director of VISL, but because these complicated issues needed someone with global exposure and strong intellectual ability to understand. We were trying to improve on the work of some of the world's most famous and highly-paid consultants, after all, so things would get a bit complex! Having worked with Dr Tharoor on many occasions, there was not an iota of doubt that he was the ideal, I'd even say the only, person to reach out to and to explain all our concerns and suggestions to.

In the midst of a busy travel schedule, one would have expected him to take a few days to act up on our red flag but we were about to be pleasantly surprised! On the same day, he called a meeting with the senior management at VISL and impressed the need to make changes on them. To their extreme credit, both VISL and AECOM were very receptive to Dr Tharoor's inputs and their request for detailed inputs led to the slide deck above. Eventually these led to a re-worked master plan and a detailed discussion with VISL and AECOM on the side-lines of Emerging Kerala, chaired by Dr Tharoor. More on the outcome later, stay tuned!

Hopefully, this initiative will have made at least a small but tangible change in the course of this behemoth of a project, and a positive change at that. Because both the risk and the opportunity in a project of this type lies primarily in its concept and development strategy as opposed to its actual construction, we believe that an intervention of this nature will be able to steer the project in a more successful direction, where it banks on its inherent strengths to boldly go where no Indian port has been able to go before and take the fight directly to the regional hubs and prove that Indian logistics will not always be the inefficient mess that it's been till now. If this little venture plays a part in that, it'll also vindicate a new application of crowd-sourcing, one which is catalyzed by the right kind of elected representative.

Trivandrum International Stadium - Breaking New Ground

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Kerala's first purpose-built International Cricket Stadium is being built at Karyavattom, a northern suburb of Trivandrum. A state-of-the-art 50,000 seat stadium, it will confirm to international standards for both cricket (ICC specifications) and football (FIFA specifications).

In addition to the stadium, the 35 acre complex will also include up to 100,000 sq.ft. of modern retail, a convention center, a sports club and sporting complex and guest suites. This will be a first for any sporting complex in India and this project is also the first of its kind to be built on a Public Private Partnership in India, with IL&FS being the developer. 


 
 
 
 
 
 
 
 
 
6-lane approach road from the old National Highway

Gantry crane being erected for pre-cast concrete construction. This will help speed up the development of the stadium which is aiming for a December 2013 deadline.

Concrete batching plant up and running

Foundations under construction

Technopark Phase I seen in the background - A 50,000 seat international stadium and a 50,000 seat business park in the same frame, now that's rare!


Images Courtesy: IL&FS, SSC Trivandrum and its forumers Vjfile and Viveks

You can Help the Vizhinjam Project - with an Email!

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If you are wondering how your email can help a $2 Billion project that has been becalmed of late as a result of poor luck, poorer management and a pronounced lack of interest on the part of the current State Government, read on.

The project is currently passing through a very sensitive phase as its Environmental Impact Assessment is well nigh complete after a year-long study by a specialized consultant and the Master Plan has just been finalized by AECOM. VISL is pushing ahead with the Environmental Clearance process which will most likely result in hearings in December 2012 or early 2013, hopefully leading to the project being cleared for full-scale construction by mid-2013. Only after this will the Engineering, Procurement and Construction (EPC) contract to built the marine infrastructure be issued and actual design and construction work begin, hopefully by end-2013, to commission the port by early 2016.

In the meantime, determined attempts have been made by a lobby of vested interests, primarily the owners of a number of small resorts in the project area to stop the project dead in its tracks in order to maintain their business interests. When attempts to rustle up the local population failed, they have taken to the media claiming doomsday scenarios such as the construction of the port wiping out the beaches in Kovalam, destroying the tourism industry and devastating the fishing community. Pretty scary stuff, but without a shred of evidence in sight. These folks ignore the benefits that the project could bring to the tourism industry and themselves, such as by bringing upwards of a 100,000 additional foreign tourists to the area via its cruise terminal.

They have now filed a complaint with the Compliance Adviser Ombudsman of the International Finance Corporation (IFC), which is the project's main adviser, alleging that the IFC and its consultants overlooked key negative impacts of the project and that they painted a wrong picture of the net benefits from the project. One may wonder why the Ombudsman of a US entity has any business talking about a sovereign funded project on Indian soil? Good question. The short answer is that the environmental study was funded by the IFC (yes, our Government cutting corners again, probably to pay for E Sreedharan & Co!), thus any delay in resolving this complaint could adversely affect the environmental clearance report.

The Ombudsman is visiting Trivandrum on October 27, 28 and 29 to gather more facts and to meet all stakeholders first hand. The resort lobby will try its best, using all its resources, to paint a negative picture of the project. What we need to do is to make sure that the Ombudsman understands that the general public, that's us, don't agree with this very small group of vested interests and that we want this project to proceed. So, please, please take five minutes to copy the following text, paste it into an email, add in your name at the end (and a couple of lines about you, if possible) and send it to the CAO/Ombudsman's email address (at the bottom of the text). Five minutes, that's all it will take, I promise.
 
"Subject: Re: Memorandum Refuting the Allegations against the Vizhinjam Port Project in Trivandrum, India

Respected CAO/Ombudsman,

I am writing to you to express my strong protest against the malicious allegations raised the much-anticipated Vizhinjam deep-water port and container transshipment terminal project, a copy of which has been posted on your website. 
As an Indian who has sincere aspirations about the Nation's progress, I would request you not to indulge the machinations of a handful of shadowy resort owners with dubious records of their own who are intent on trying to delay or scuttle a major infrastructure project, that not only has bipartisan political and public support, but which can significantly improve the livelihood of large numbers of people, especially the economically disadvantaged sections of society.

The complainants have stated that the potential of the project has been overstated and that its environmental and socioeconomic impact has been understated in the reports prepared by the IFC and its consultants. Please note the following points in this regard:

1) The reports prepared by IFC and its market study consultant underestimate the potential of the project by being conservative about the container traffic potential at Vizhinjam and not estimating additional traffic volumes such as those from potential energy imports (LNG/coal).

2) Even with a throughput of 1.5 Million TEUs/year as envisaged in Phase I of the project, the container terminal at Vizhinjam alone will generate revenues of $150-200 Million/year. At full capacity, the project could generate revenues of over $400-500 Million a year.

3) The actual economic impact of port projects is mostly indirect in nature, by spurring industrial development and employment in the surrounding region. Thus the boost to Kerala and India's economy would be manifold than any estimate of the direct benefit.

4) The resorts falsely claim that they have a greater role in the economy than the port. There are only about 30 in all, that claim to be impacted by the project. These are mostly small properties, the largest two having between 25 and 35 rooms. They may have no more than 200-300 rooms in all. All are in the 2-3 star category or below. Considering the prevailing market rates in Kovalam, a quick back of the envelope calculation shows that their annual revenue is of the order of $3-3.5 Million (300 rooms X $50/night X 365 days X 60% occupancy). In short, they have grossly overstated their own economic importance.

5) None of the resorts is being forced to close down. Their only loss, if at all, would be their sea views. It is cruel to scuttle a project that could benefit the entire State and Nation for the sake of the views out the windows of a few small resorts.

6) No resort outside the immediate project area has filed a complaint or raised a protest. The vast majority of the resorts in the Kovalam-Poovar tourist belt lie outside the project area and have not joined the complainants in their dire predictions that beaches in the vicinity will vanish.

7) It's understood that the broader tourism industry and the business community are in favor of the project and thus the claims of the complainants that tourism in the entire region will be destroyed are gross exaggerations and not shared by other stakeholders in the vicinity.

8) The construction of a cruise terminal in the port could bring at least 50-60 ships a year and over 100,000 new tourists to the area, because of Vizhinjam's proximity to the shipping lanes that carry hundreds of cruise ships each year. (The port in Cochin, which is 200 Km further away from the shipping lanes and which does not have a dedicated cruise terminal, received over 40 ships and 60,000 tourists last year alone). This would be a massive boost to the tourism industry around the project, especially to resorts in the immediate vicinity.

9) While the complainants have alleged massive environmental damage from the project, they do not have a shred of scientific evidence to back this up nor have they demonstrated any professional competence to make this claim whereas the environmental study commissioned by VISL and IFC has been conducted in a rigorous scientific manner by experts in the field.

10) The complainants' environmental conscience is extremely questionable as they are operating resorts in a coastal area where it's forbidden to have any permanent construction except for port-related structures. If they respected the environment as they claim to, their first action would have been to shift their operations to a different location. Thus, their concern for the environment seems very dubious and was probably highlighted only to further their vested interests.

11) The economically disadvantaged fishing community has repeatedly come out in favor of the project because they understand that the project will not only bring in direct and indirect employment opportunities but it will also create avenues for value addition to their catch and for quick and direct exports of the marine products which will improve their economic standing.

12) It will also be possible to expand the heavily congested fishing harbor at Vizhinjam in conjunction with the port project, while the new roads, power and water supply being built for the project will benefit the community around the project.

In short, you are being asked to sit in judgement on a complaint that has no basis in truth, science, sincere concern for the environment or for the welfare of the community. This is an attempt to pervert the very purpose of an institution like the Ombudsman to serve very narrow vested interests of a small group of individuals. The Vizhinjam port project has been the dream of an entire State for over five decades and I certainly hope that you will help it to reach fruition at the very earliest.

Warm Regards,

XXXX"

You can email this to cao-compliance@ifc.org

The sooner you can send it out and the more people you can convince to send it out as well, the better. We live in a democracy, the IFC subscribes to it as well, and public opinion does matter. 

Thanks in advance! 

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Second Innings for Dr Tharoor - Another Chance for Trivandrum!

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 Image Courtesy: Firstpost.com

With the latest reshuffle of the Union Cabinet, Trivandrum's MP is back at the most important table in the land. There can be few better choices for the Ministry of Human Resources than an erudite scholar and internationally acknowledged author, although it seems that Dr Tharoor requested the particular portfolio instead of a stint back at his forte, External Affairs, in order to focus more on his home constituency. That would be a very rare occurrence in a day and age where most politicians would first look at the personal benefit from a portfolio before even bothering with such optional niceties as working for their constituents.

Many of us would immediately hope that his ascension would lead to a quick solution to all the issues that Trivandrum faces. Let's be practical, no one has solved such a plethora of problems in a single day since that hallowed carpenter of lore from Nazareth. That said, we can expect that Dr Tharoor's new role will help him get better access to the workings within the North and South Blocks, the apex of power of the country and help facilitate key initiatives within his portfolio and beyond.

A few of the key agenda items have been enumerated in this article. Do let us know what you think and whether there are more areas where you would like to see our MP focus on in the year or so left in the tenure of this Ministry. Please drop in a comment here or on the Thiruvananthapuram Updates blog. Thanks in advance.

Once again, let's all join to congratulate Dr Tharoor on his new role and to support him in his endeavors for our city.

The Irony of the US Election

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(The following post may sound like a rant, but do read on....)

 Image Courtesy: Patdollard.com

Yes, it's official, Romney lost and what-is-his-name won. Now the electorate have nothing else to blame, after all, one can make a mistake once. The second time, well, that's being stupid. And yes, I was rooting for the other guy because the only economic system still ticking over in the G-8 is the one that did not dabble too deeply into socialist, big Government philosophies.Anyways, that's not the reason behind this post (yes it is...no, it's not!).

Perhaps the most curious thing about the long, bruising campaign before Election Day and the often hysterical celebration after it was not the various nut-cases who took part, the batty ideas which swung votes this way or that or even the assorted gaffes from either candidate, but the fact that one of the groups cheering the incumbent on the loudest was the one which had no business doing so and which should have encouraging the other guy. No, I am not talking about the Jewish electorate, but about the non-voting Indian crowd. Namely, those holding Indian passports and not having the oft-coveted "Green" cards.

It's pretty curious indeed that a set of people who are here on work or education visas, who have no votes and often have no grasp of the real issues or the complex social context of the election, are rooting for the guy who blames outsourcing to India as a reason for job losses in the US, wants to get tough on H1B visas and generally takes a soft stand with China. Did I get it all wrong, but didn't the incumbent try to grill the challenger for promoting outsourcing when he was in charge of real businesses as opposed to being charge of the law library at the University of Chicago?Oh and didn't the challenger say he'd be more open to making sure more qualified immigrants (read Indians) would be invited to live and work in the US? Maybe I got it all wrong.

In addition to a storm of activity on the favorite medium of all arm chair activists and intellectuals - Facebook - where many of my closest friends, now in the US on H1Bs and F1s, were rooting for Obama and dissing Romney for not supporting windmills and solar cells, his stance on abortion and for threatening to deport illegal aliens (no, not cute lil' green men!), there were even some folks who went around with Obama-Biden buttons! 

The most ironic image that comes to mind is coming across an Indian gentleman in a subway train on election day, carrying an "Infosys Technologies" backpack yet wearing not one, but three "Vote for Obama" buttons. Does he want his H1B and his job, or want to see the guy who wants to end all that in the White House?!

Anyways, my point is completely different. Being passionate about the democratic process and social issues, even ones completely disconnected from our place of birth, is all fine and dandy. But what galls me is that not even a fraction of this passion is visible for issues at home, in Trivandrum. 

Right now the city is going through a public health nightmare because the State Government lacks the resolve and the interest to find a pragmatic solution. Having proven themselves incapable of implementing an order from the Kerala High Court to re-open the waste processing plant at Vilapillsala, our intrepid CM and his gang are now taking their time trying out various crack-pot schemes ranging from dumping waster into quarries to baling it to burning it in some mobile contraption. Key projects that are of vital importance to the State from the $2 Billion Vizhinjam port to the expansion of the International Airport to the missing-in-action mass transit system are either stuck like fliesin molasses or running around in circles like headless chickens. Ladies and gentlemen, these projects matter to us and our families and pretty much everyone we know, far more than the US Election, unless one plans to pack his/her bags for the Land of the Free permanently.

I am sure a scientific examination will bear out my anecdotal observation that posts, tweets and updates by many Trivandrumites about the US Election would have swamped those, if any at all, about these pressing issues at home by a very significant margin. What difference would a few tweets or a couple of status updates make to Vizhinjam might be the question. What difference do a few tweets and status updates make to the outcome of an election in another country, I ask you back? The point is that the lack of interest for even the most important development issues on the social media is symptomatic about apathy towards these issues on the ground. Also, even the littlest evidence of public support, such as when over 1000 of you read the post appealing for support for the Vizhinjam port and (hopefully) sent emails to the IFC's Ombudsman, can make a real difference. There are people and organizations watching how issues are perceived on the social networks, and there are savvy politicians like Dr Shashi Tharoor, who do take such responses very seriously and respond to them. 

It appears that the current Government takes Trivandrum for a "silent" constituency that can be ignored and abused to the max, which will still dutifully come back and send some of these same MLAs/Ministers back for another five year paid vacation. Without a pronounced communal, caste or political leaning, Trivandrum is the most cosmopolitan of all districts in Kerala, electing representatives from both major groupings. Little wonder that Dr Tharoor chose it to be his constituency, because Trivandrum was the only urbane, educated constituency that would value his world-class capabilities and experience over his lack of a communal-caste-political equation. Sadly, this open and cosmopolitan nature of the Trivandrum electorate has been abused by all parties, the UDF more guilty of the two by some margin now. A perception of apathy from voters only makes the political establishment more confident in continuing the policy of feeding scraps to us and sending the prime cuts elsewhere at our expense.

I am not inciting a rebellion or a lynch mob here (personally I am in agreement with Sir C.P. in his argument that we would be better off on our own!), but if all of us could spend a little more attention to what's happening at home, it might make a little difference for the better. All of us love to play the blame game. Thampanoor gets a few inches of flooding after the latest cloud burst and there is a predictable cacophony calling for the blood of all and sundry, Dr Tharoor being the most common villain, all the way to the right honorable Mr Chandy and his merry band (Yes, New York is still messed up ten days since Sandy dumped about 1/25th the rainfall we receive during one Monsoon season, but Thampanoor has no right to flood!). For everything that goes wrong, there is always someone else to blame. How about us? How many of us would cast our votes based on a development agenda? How many of us bother to cast our votes at all? Has any of us organized or signed an online petition (takes 1/10th the time the average user spends liking the photos of his/her friend's friend's friend's neighbors new puppy!) urging the Government to speed up its act on a critical development project? Yes, our voices do matter. 

Actions matter even more. Even small ones. The next time someone asks about our home city, let's say something nice. Not that it's full of trade unions who would love to ruin any business that happens to set up there, or that hartals are our national pastime, or that there's nothing to do after hours. How about that we are the fastest growing technology cluster in India or that we will soon have India's best port, or that we are a great, safe place to live in? Those are all true, by the way! Or the next time that we have nothing better to do, why not chat about something a little bit more pressing than who will do better on the next episode of The Voice or its local incarnations? Perhaps chat about how we can make our city better. We could even go and meet our elected representative (they don't bite, well most of them don't!) and tell him/her in a very subtle tone that he/she will lose your vote if they don't get their act together and fight for your city. It's a lot less fun than catching a nice movie for the third time, but it might make a little difference not just to us but our kids and theirs. 

In the end, it all boils down to that eternally relevant dialogue uttered by Prithviraj's character in Madhupal's excellent "Thalappavu" - "Only a responsive electorate can demand a robust Government. Instead of complaining, we must question and react."

Watch from 3.00 onwards.

The next time we reach to click on the "Like" or "Tweet" buttons, let's spend a few seconds on causes more urgent than Obama's latest messiah proclamation or that cute puppy that belongs to someone you barely know. Then we can complain. Then. 


P.S: This was not personal, apologies to anyone who may feel it was. And a heartfelt round of gratitude to all of you who read my appeal for support for the Vizhinjam projectand sent emails to the CAO. Initial reports suggest that we have made an impact, stay tuned! 

The Life of PI - A Trivandrum Connection

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When I recently saw the movie adaption of the Booker Prize-winning novel, Life of Pi, little did I realize that the movie and the book that I read a long time ago had a very profound connection with our city and with a place which has created its own share of fond memories for me, over the past three decades.


It appears that the author, Yann Martel, sourced a lot of his inspiration behind the rather eccentric premise of the book from time spent in the Trivandrum Zoo in the 1990s. In fact, it seems that many of the characters including the rather dashing Bengal tiger that plays the supporting role in the book and film, were based on real animals that he observed at the zoo.

Curious?Read on here and then check out how the lilting title credits music seems to tip its hat toward a very famous and familiar tune also connected to Trivandrum.

And yes, all of us who scoffed at the idea of visiting the Zoo when we grew out of our school shorts (and pinafores), we should reconsider knowing that one of the most popular literary works of the last decade, one which many of us would proudly add to our reading lists, had its roots in that very place.

The connection of our Zoo with Life of Pi was reported in the media in 2002. Had it been anywhere else, and that very fact could have been used to bring in a few million very curious and very interested touristsfrom across the world. Kerala Tourism, are you listening at all?

P.S: For the best collection of photos and news updates about the Zoo, do browse through this forum.

A Vision for Kovalam?

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The Tourism Department has very belatedly proposed a master-plan to develop Kerala's original and premier tourist destination, the famed beaches of Kovalam, with a view to foster planned and sustainable development over the next 30 years. Is there a sure and simple way to do this?

In early November, The Hindu carried a report that the Tourism Department has decided to carry out a master-planning exercise for Kerala's flag ship tourism destination - Kovalam - that helped launch the tourism industry in the State just as surely as Technopark is solely responsible for bringing IT to Kerala. Surely, they'd have thought about it in the 40 years that have elapsed since the first tourists lounged on the sands of Kovalam? Subscribing to the universal Indian adage that late is always better than never, we should perhaps be thankful that the Department remembered that Kovalam still exists despite their best efforts, and still draws more foreign tourists than any other place in the State. With the rapid emergence of Trivandrum as a metropolis with a strong presence in IT, education and medical value travel, it's a no-brainer that the tourist traffic to the city will only increase in the future, fostered by concepts such as Meetings, Incentives, Conventions and Exhibitions (MICE) tourism and by the new-found fame of the city's patron deity and its lovely zoo.

Considering the fact that the nearly every inch of beach between Vellar and Poovar has a resort on it and that there's not much spare land left in this densely populated coastal belt, one would wonder if there is any point left in a master-plan. After all, if there's no developable land to plan, what use is a master-plan? Well, maybe there is still something that we can do.

Before we see what can be done, let's quickly look at what has already been done because this is not the first time a "master plan" has been proposed for Kovalam. Back in 2005, a Special Tourism Zone (STZ) was put together for the Kovalam-Vizhinjam region, although the jury's out on whether it ever came into effect or not, with almost everyone concluding that it didn't. In sum total, it was not much of a master-plan and never a development plan by any standards because all it did was suggest land-uses for various regions in the Kovalam-Vizhinjam area as well as development guide-lines that essentially spell out what can be built and what cannot be. No details of how the zone is to be developed are mentioned and it omitted key areas such as Poovar and fails to even acknowledgethe $2 Billion Vizhinjam deep water port project located right in the middle of the tourism zone (Pssst....don't let the resort lobby hear that!) In short, it doesn't help anyone much.

 Different Zones in the Special Tourism Zone, 2005

 Suggested Land Uses within the STZ, 2005

So what needs to be done better? First and foremost, the Tourism Department needs to understand that while the master-plan exercise is essentially under-pinned by an urban design process (yes, most of the area is within Corporation limits and wholly within the Trivandrum metropolitan region), to be truly effective it also has to combine policy and development strategy components to become a holistic and implementable Development Plan. Next, it needs to acknowledge that there is very little additional land available in the area and thus must focus on enhancing the existing tourism cluster as much as on developing new facilities. Third, the exercise has to be truly forward-looking, in terms of anticipating emerging trends in tourism rather than looking back at the past to chart out the future. Finally, the Plan has to be backed by action and adequate funds, the latter usually a necessary condition for the former, and both dependent on the will-power and interest to execute among the powers-that-be. In order to keep our recommendations short and simple, we will focus on three key aspects - urban planning, infrastructure and development policy.

Urban Planning

By definition, urban planning is a scientific and political process which seeks to create a holistic plan for urban development by integrating land use planning, urban design, transportation, infrastructure and so on. This is exactly what the tourism zone needs.

First things first, what area are we talking about. I'd go out on a limb and call for everything from Veli (at least) in the North to the Poovar Estuary on the TN border in the South to be included in the Development Plan because common aspects like the focus on tourism, the coastal location and so on are shared and because the overall idea is to create the best experience for tourists and the local community as a whole. That said, it seems that the Tourism department likes to confine the scope to between Kovalam and Poovar. An extension up to Thiruvallam should definitely be considered. 

As mentioned in the STZ report, the area under consideration should extend a few kilometers inland to give adequate scope for development. This means an area roughly 23 Kilometers long and about 3 Kilometers wide, totalling 75 Square Kilometers or 18750 acres, give or take. Not a piddling patch of land by any stretch of the imagination, especially not in our State where every square foot counts.

While there are a wide variety of approaches that can be followed to kick-start the urban planning exercise, the most intuitive is to identify key nodes and paths (following in the footsteps of Lynch himself), as well as the pre-dominant uses - both current and future - and then to see what changes need to be made, if any, in the existing structure to arrive at the optimal solution. In the case of the Thiruvallam-Kovalam-Poovar zone, this is relatively straightforward, at least in terms of nodes and paths. The zone is pretty linear (23 Km X 3 Km). Key nodes include Thiruvallam, Vellar, Kovalam itself, Vizhinjam and Poovar with sub-nodes within many of these such as the three key beaches at Kovalam - Samudar, Eve's and Light House. The key path is the National Highway 66 till Kovalam and thereafter the Kovalam-Vizhinjam-Balaramapuram road, recently renovated by KSTP for the Vizhinjam project. An additional node that will soon gain in importance will be the Vizhinjam port itself, while the widening and  completion of the NH-66 till Kottur will make it the dominant path for the entire stretch. Tourism and fishing are currently the pre-dominant uses while port-based logistics will weigh in soon enough. The area is also densely populated with houses making up the vast majority of existing structures.

A simplistic solution to propose is the creation of self-contained activity clusters at each key node, by the planned development of mixed-use projects that include retail, commercial space and infrastructural components such as bus stops and parking facilities. This can be accomplished through a combination of passive incentive zoning and active PPP-based development. The tourism zone currently has no modern format retail and beyond the few souvenir shops that dot the sides of the road, little organized retail of any sort. This is a major missed opportunity for a destination that attracts millions of tourists every year. The same holds true for entertainment, beyond the Sun, sand, surf and the spas. The nearest decent movie theater is a long way off, for example. The mixed use clusters should be planned to provide a wide variety of shopping and entertainment options including multiplexes and restaurants, cafes and pubs.

The key paths would continue to be the NH-66 and narrower but still adequate coastal road developed by KSTP.  Additional paths could potentially be developed, such as a revived National Waterway 3, a new MRTS line and the mainline railway itself, as and when commuter rail services become operational and the nearby stations at Nemom and Balaramapuram become developed.

The urban design would need to preserve and enhance the natural beauty of the area which is a key attraction, by protecting green areas and adding landscaped areas in public spaces and mandating green areas for new and existing developments (already a part of most low density resorts). Most importantly, while upholding the development controls of the CRZ/CZM regime, the urban design guidelines should not be restrictive and should encourage significant new development. For example, restrictions on the aesthetic design of resorts (such as all roofs must be made of tiles and sloped between X and Y degrees from the horizontal!) are usually unnecessary as long as environmental quality is maintained. 

Infrastructure

As with any urban development project, the Kovalam master plan will encompass transportation, power, water supply and waste disposal infrastructure. In addition, because it focuses on a specific sector for its economic impetus, it'll also need to develop sector-specific infrastructure.

The NH-66 will play the role of an axial connector from Thiruvallam till Kovalam. Since the stretch between Kazhakkoottam and Kovalam will be developed as one with urban character, it will have the requisite service roads and street lighting to more than adequately meet the needs of the tourism zone. The NH-66 will also serve as the primary access road for the zone from the North and the South. Thereafter, the Kovalam - Poovar road, developed under KSTP to act as a preliminary construction access route for the Vizhinjam project will do duty as the primary access route. While this road has been widened and strengthened, it needs more work - street lighting, signage and junction improvements including signals.

Looking further ahead, the Kovalam-Poovar tourism zone needs to plan for connections with upcoming mass transit systems. At long last, the MEMU services along the Neyyatinkara-Kollam mainline have gotten rolling, with a strong final push from Dr Tharoor. As these commuter trains increase in frequency over the coming months, it will be helpful to plan feeder bus connections touching the nearest stations such as Nemom and Balaramapuram and various key locations in the tourism zone. This will also apply to the first route of the Trivandrum MRTS which will run along the Karamana Kaliyikkavila road till Neyyatinkara. As the MRTS network does expand with new lines, a top candidate for a new line will be an alignment that connects the tourism zone and the port with the central urban core, the Airport and other transportation hubs. This should be included in the Master-Plan and forcefully be put forward to the agency implementing the MRTS project.






A couple of possible MRTS networks that include lines to Kovalam-Vizhinjam 

With thousands of hotel rooms in addition to tens of thousands of residences in a very densely populated semi-urban area, there's a strong and urgent need for urban infrastructure for water supply, sewerage and municipal solid waste (MSW) disposal, in the area. There are some initiatives to provide an effective water solution in the area in association with the Vizhinjam project and with funding from the Tourism department. But a comprehensive development plan needs to include a comprehensive solution to the water needs of the area rather than a patchwork of schemes and this component of the plan should be forward looking, anticipating needs from the development spurred not just by the plan itself but by the growth of India's deepest and most efficient port. A high-capacity line from the city's main water-supply following the NH-66 can be supplemented with water drawn from the Vellayani Lake and the Karamana River, but the critical link will be to lay the distribution lines, which has repeatedly proven the Achilles' Heel of various water supply and sewerage schemes in the past. The same applies to sewage treatment for the area, where most resorts depend on their on treatment plants or septic pits to dispose of their waste. Considering the fact that it's a densely populated region located right on the coast,, permeated by number of water bodies, it is essential that a sewage network be included in the development plan, to convey waste water to the new sewage treatment plant at Muttuttathara sewage, which would of course need to be expanded well above its current capacity of 104 Million Liters per Day (MLD). There is already a plan to install 1,400 biogas plants in resorts and homes in the area, to make up for the disastrous MSW situation in the city but in the end only efficient centralized processing can be a sustainable solution and this needs to kept in mind as well.
 
We talked about sector-specific infrastructure at the beginning of this section and the top items that jump out in the case of Kovalam-Poovar are a world-class convention facility, a theme park attraction and, of course, the cruise terminal at the Vizhinjam port.

The convention center is a very important addition to the attractions that Kovalam can provide because Meetings, Incentives, Conferencing and Exhibitions (MICE) tourism is becoming a very important driver of traffic across the world and can also help to balance out the seasonal traffic pattern seen at Kovalam, where peak occupancies seen during October - May are followed by an off-season between June and September. Kovalam currently only has one large facility, the 1000-seater Rajiv Gandhi Convention Center at The Leela. However, it's understood that the resort's new owner, Gulf-based industrialist Ravi Pillai, is upgrading the convention facility to a state-of-the-art 3000-seater with an investment of Rs 300 Crores (unless of course, the RP Group is planning to develop the proposed convention center at Aakulam). Additionally, the Muthoot-owned Vivanta by Taj, Kovalam, is adding a smaller 500-seater facility. Being privately funded expansions of existing properties, these projects should be straightforward (unlike the six-year long struggle with the public-private Aakulam convention center complex) and should provide more than adequate convention capacity, making one element of the development plan easy. A theme park, potentially a water-based one, can also help balance out the annual ebb and flow of tourists, as well as draw in new demographies such as kids. An ideal location would be one of the disused quarries in Vellar, at any rate a much better option than filling them with garbage.

The final element of specialized infrastructure is the cruise terminal. The good news is that it's a firm part of the latest master plan of the port, the not-so-good news is of course the ambiguity that still prevails with the timing of its development. While the terminal would be funded by VISL and/or the port operator, including it in the development plan for Kovalam may make additional funding available. Vizhinjam's fishing harbor has been receiving small cruise ships without any kind of terminal for years now and considering that dozens of large ships call at the ports in Ernakulam and Mangalore each year, a deep water port with a purpose-built cruise terminal, that's much closer to the shipping lane and has many more tourist attractions around it, will likely receive a lion's share of this traffic when operational. This would bring tens of thousands of additional foreign tourists to the zone. And if Vizhinjam can home-port some of these ships, it'd serve as a source of room-nights for the resorts.


 The Port of Barcelona - Container and Cruise Terminals
Photo Courtesy: HDTimeLapse.net 
(click on the link to see an interesting time-lapse video)

The final aspect of the development plan for the Kovalam-Vizhinjam-Poovar tourism zone should be a clear and bold development policy framework. Policies need to encompass and govern key areas that will facilitate and execute the development plan such as planning guidelines, fiscal and non-fiscal incentives, funding and an effective oversight and promotion mechanism.

Planning guidelines and fiscal/non-fiscal incentives go hand in hand to facilitate and implement the development plan. While we can imagine whole reams of such guidelines and incentives, I will propose just one set, which may be a little controversial. At the risk of sounding like a proponent of corporate-style tourism, I'd push for a package of incentives that will incentivize the development of large resorts and the establishment of major international (and domestic) hospitality chains. Not that I am trying to play down the contributions and importance of small and medium resorts (which indeed make up more than 90% of all rooms in the area) but my point is that to attract more international and domestic tourists, we need major chains to operate high-end, large capacity resorts because their booking networks and promotional campaigns can reach far further than small resorts or even Kerala Tourism itself can. Having interacted with almost every major hotel chain in the world and having studied the industry in great detail, it's very clear that there are a great number of people out there who depend on the name of the chain to make a booking. They'd rather go where their favorite brand - Hilton, Marriott or Four Seasons - is rather than spend a lot of time researching a destination and then risking a stay in a hotel they are not familiar with. I believe this is one reason why Goa has stolen a march on Kovalam and Kerala in terms of international tourists. The same holds true for Phuket, Malidives or Bali, which have at least one out post of almost every hotel chain one can think of. We need more of these! And this works to everyone's advantage because a higher profile for the destination will lead to spill-over benefits for all classes of hotels, as it very evidently has in Goa or Phuket. 

Counter-intuitively, it is often the bigger resorts which need incentives at the beginning to make financial sense, because of their need for large parcels of land and massive up-front capital expenses. Each five-star hotel usually costs between Rs 80 - 150 Lakhs per room! That is, upwards of Rs 10-20,000 per Sq.ft, which is far more than the most luxurious residential apartment in Kerala. Giving these hotels incentives similar to the IT industry - tax breaks, density bonuses on non-CRZ land (because the CRZ rules severely restrict density) and starting a land-bank, would be a very good idea because the resorts will create direct (taxes, employment etc) and indirect economic benefits (spending in the local economy, employment in support services etc). World-class infrastructure and a guarantee that specialized facilities such as the cruise terminal and theme park would be built on time would also indirectly incentivize major developers and operators to consider taking a risk at Kovalam instead of Mali.

Funding is as crucial as anything else because even the most ambitious and well-drawn up master plan is nothing but a piece of paper without the requisite funds to put into action. This fate has been suffered more often than not by almost every master-plan we have heard about in Kerala. The Tourism sector generated revenues of about Rs 19,000 Crores in 2011. With at least a 20% share in this total, Trivandrum district would have accounted for Rs 3,500-4,000 Crores, and at a mean taxation level of 10%, generated Rs 350-400 Crores of direct revenues to the Government, not counting for indirect tax flows. So an annual budget commitment of Rs 100 Crores to the Kovalam development plan, growing at 10% every year is not a big ask, it's a rightful plough-back. Keeping in mind the fact that great bulk of tourism development is privately funded, this budget could realistically fund the public components of the infrastructure development needed to support the region well into the future.

Finally, we need a pragmatic and effective mechanism to oversee and promote the development plan. This is no easy ask, as we have seen how very large and well-established organizations such as TRIDA and the Trivandrum Corporation have miserably failed at similar tasks over the last six decades. No, Kovalam doesn't need just another inefficient, bureaucratic body to run it into the ground. It needs something autonomous and compact such as Technopark or VISL. A Governing body composed of the powers-that-be (the CM, assorted Ministers, the MP and MLA (s)) and industry experts, to guide an efficient management composed of tourism professionals. It could be called the Kovalam STZ Development Authority or whatever else the Government wishes to but it should have great clarity of purpose, the necessary executive authority and, just as importantly, the necessary budget. The latter can be funded by the Government contribution mentioned above as well as by voluntary and compulsory contributions from the resorts in the area. The compulsory component could be in the form of a tax or cess on room revenues at each resort, a common form of revenue generate for tourism related projects such as convention centers and stadiums, across the world. Indeed, the India Convention Promotion Bureau could be an interesting model to base the development authority on.


There should also be a strong and sustained umbrella destination branding campaign which promotes Kovalam, period! Not God's Own Country or Incredible India but Super-amazing, Awesome Kovalam! It should be handled by a professional branding and advertising agency and funded by the body mentioned above. While small and medium resorts would contribute through the cess/tax levied on them, large resorts and hotel chains would also commit to spending part of their ad budgets on destination branding and also to prominently include their properties at Kovalam in their national and international marketing campaigns. Given how short vacations are becoming and how much business travel is expanding, it'd be safe to say that a large segment of potential visitors are looking to choose between destinations, making the idea of promoting the specific destination amid the clutter of messages out there even more critical. Indeed, Kerala tourism has already rolled out this concept for new destinations like Bekal, making it all the more mystifying that they should not be doing it already at their flagship attraction, that's also the earliest to draw tourists to the State.

In conclusion, let's look at what could be if the Kovalam development plan is well thought and equally well executed.  Sentosa Island in Singapore is a tiny 5 Sq. Km  spit of land in the middle of the Port of Singapore attracts over five million visitors a year. Over the years, the Government of Singapore invested about $250 Million (Rs 1250 Crores) to create a multi-Billion dollar tourist destination which is now a must-see for any tourist in South-East Asia that combines Singapore's own culture, history and flora and fauna with world-class amenities and attractions such as the $5 Billion (Rs 25,000 Crore) Resorts World Sentosa. Kovalam has a much greater area at play (25 Km of beaches compared to Sentoas's 2 Km!), access to a much larger population and far more adjacent attractions, so this certainly is food for thought. At the risk of sounding like a day-dreamer, a great development plan with adequate funds could transform Kovalam into a truly world-class destination that competes with the likes of Dubai, Singapore and Maledives rather than dukes it out with the likes of Goa or Mammallapuram. As I usually end it with, fingers crossed and stay tuned!  


 Sentosa Island, Singapore
Photo Courtesy: Wikipedia.org 

Welcome IFFK 2012

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Come December, and there are two events that I look forward to - the good fun and food associated with marking another year spent on this Earth, and the best film festival in India. Sadly, I have been missing the latter for the last three years butas a film lover, I am proud to welcome the latest edition of the International Film Festival of Kerala to the State Capital.


This year, IFFK will add not one but four spanking new venues to its portfolio in the form of the newly renovated Kalabhavan, Kairali and Sree, together with the new kid on the block, Nila. 

 Yes, that's what Kalabhavan looks like now!
(Photo courtesy: Metromatinee.com)

This year too, IFFK has had to dealt with one of the strangest case of counterfeiting in the world, a duplicate film festival being held in Ernakulam and that too with the support of the State Government. The old adage holds that imitation is the sincerest form of flattery but this is ridiculous! 

I am sure IFFK 2012 will be great, I envy all those of you who'll be able to go sample the world's cinema in a dizzying week of great filmography. Enjoy!

Next year maybe.....hopefully.... 

Can't Trivandrum anchor a South Indian Industrial Corridor?

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Even as the Chennai Bangalore Industrial Corridor marches down the trail blazed by its predecessor being developed between Delhi and Mumbai, Kerala is sitting out of this golden opportunity even as it possesses the very catalyst which could help hasten the industrial development of South India.

As India marches boldly into 3rd position on World's ranking of economies (measured on Purchasing Power Parity), it's starting to launch a slew of massive infrastructure projects needed to bridge the gulf between infrastructure demand and availability that has been hampering the nation's growth over the past two decades. It's widely recognized that we need to invest upwards of $1 Trillion into infrastructure over the next few years - power, roads, railways, ports, urban infrastructure and so on. 

There's a scarily large gap between power generation and demand in almost every single State, including Kerala, and the fragility of the grid was laid bare by the massive blackouts across North India in July, which have the dubious distinction of being the biggest in history. Two of India's industrial powerhouses, Tamilnadu and Andhra Pradesh are crippled by power shortages. And there seems no end in sight despite the half-dozen Ultra Mega Power Plants (UMPPs) coming up near ports and coal mines.The other major enabler of industrial development, logistics, is in a terrible shambles as well with as much as 13-14% of our GDP expended on moving things around compared to 7-8% in most developed nations.

The first steps in the right direction began in 1998 with the National Highway Development Project, a program of highway-building to rival the interstatesin the US and the autobahns in Germany. Over 32,000 Km of highways have been or are being 4/6 laned with a further, with a further 17,000 set to be shortly. The initiative to build giant UMPPs is also promising as is JNNURM. There have also been lots of mis-steps and missed steps, including the National Maritime Development Programme and the usually wayward railway development over the last decade or so.It's clear that we have just scraped the tip of the trillion dollar infrastructure gap icebergthat threatens to scupper our economy. There are many years, perhaps decades of work left to close that gap, not surprising how long it has taken the likes of the US and Germany to build a critical mass of infrastructure. Even China's break-neck campaign to build infrastructure, that our politicians and press love to wax eloquent about, has been in progress since the late 1970s.

Rather than wait for the entire country to reach a truly world-class standard in infrastructure, one approach is to focus on particular areas, to expedite infrastructure development there and to use that nexus to jump-start industrial and economic development. The biggest such initiative thus far has been the Delhi-Mumbai Industrial Corridor (DMIC), a $90 Billion project to develop an logistics-industrial corridor between Delhi and Mumbai.

Industrial Corridors


According to the DMIC website, "Industrial Corridors recognize the inter-dependence of various sectors of the economy and offer effective integration between industry and infrastructure leading to overall economic and social development. Industrial corridors constitute world class infrastructure such as high-speed transportation (rail, road) network, ports with state-of- the-art cargo handling equipment, modern airports, special economic regions/ industrial areas, logistic parks/transshipment hubs, knowledge parks focused on feeding industrial needs, complementary infrastructure such as townships/ real estate, and other urban infrastructure along with enabling policy framework."

The DMIC will be strung along a Dedicated Freight Corridor (DFC), a high-speed, high capacity railway line which will transport cargo up and down the Industrial Corridor in tandem with highways. It will have no less than nine industrial clusters or cities along its length in between Delhi and Mumbai and be spread across the States of Delhi, Haryana, Uttar Pradesh, Rajasthan, Gujarat, Madhya Pradesh and Maharashtra, that together account for more than half of India's population and GDP.A key aspect of the Corridow will be that it will be supported by key ports located in Gujarat and Maharashtra, namely Mumbai/JNPT, Kandla, Mundra, Pipavav, Dahej and Hazira (all but the first in Gujarat). These ports serve as the all-important gateway to bring in raw materials and the energy resources needed for the Corridor and also help to export its products to the rest of the World. And these ports are not created equal, although Mumbai/JNPT and Kandla are called "Major" ports, the action's shifting to the deeper, more efficient, so-called minor ports such as Mundra and Pipavav. The ports are able to out-compete the legacy ports, not just on their deeper drafts but also operational efficiency and relatively congestion-free infrastructural linkages. This is evident across the country, with examples such as Chennai Port and Ennore, and Vizag and Gangavaram. Without cost-effective and efficient logistics support from world-class ports, the Industrial Corridor would not be able to be globally competitive.

In the short time since it was conceptualized, the DMIC/DFC project has achieved significant progress. About 80% of the 10,000 hectares private land needed for the axial DFC has been acquired, in addition to nearly 6000 hectares already available with the Government. The Japanese International Cooperation Agency has sanctioned a nearly $4 Billion loan for the DFC, in addition to a $5 Billion loan for the DMIC. Tenders for construction of the DFC are expected to be awarded in 2013. The much bigger DMIC is also making progress with the Japanese again playing the role of international sponsor but the project will take longer to fructify because of its sheer scale and because of the challenges in acquiring the much bigger swathes of land needed for it.

In the meantime, in addition to the Eastern DFC project spanning Delhi to Calcutta, the proposal for a Chennai Bangalore Industrial Corridor (CBIC)has come to the fore in recent months, with the Japanese again plan the role of the prime movers. South India, especially Chennai and Bangalore, play host to a large number of Japanese companies. Chennai alone hosts nearly 30% of all Japanese firms operating in India. The Japanese have committed to be an anchor investor in the CBIC project, and the project may be expanded in scope in response to requests from the Governments of Andhra Pradesh and Karnataka to extend it to the deep-water Krishnapatanam Port and Chitradurga.


Characteristically, while the other South Indian States are jostling to be part of the multi-Billion dollar project that could be a game changer from an economic development angle, Kerala has thus far kept itself out, choosing to focus on day dreams spun by an old man. 

Kerala has a unique opportunity to tap into industrial development on a scale hitherto unseen in the State (for reasons such as our population density and lack of natural resources) and a scale that would be impossible on our own. What can Kerala offer, given the fact that we are dwarfed on the industrial front by the other three South Indian States and that we have little or nothing to offer in terms of natural resources or land? Well, in one word - Vizhinjam.

Vizhinjam and a South Indian Industrial Corridor 

The current dispensation of the CBIC has access to a clutch ports on the East Coast- Chennai, Ennore, Kattupalli and Krishnapatanam, not to mention Vizag and Gangavaram. Almost all of these have at at least 14 m of draft with Krishnapatanam and Gangavaram stretching that to 18 m, placing them at the top of ranks of the deepest ports in India. However, these ports are located hundreds of miles and days of sailing from the main shipping lanes. This means that while terminal services (where all the cargo is to be delivered to/picked up from one port) will call at this ports, they may be inefficient propositions for mainline container services which seek to maximize efficiency of their huge carry capacities (now routinely over 10,000 TEUs and headed towards 18,000 TEUs). This makes the East Coast ports, especially the ones in Andhra Pradesh poor candidates to become transshipment hubs or ports of call for the largest and most efficient of container ships. This is obviously where Vizhinjam comes in.

As we have discussed many a time, Vizhinjam is an ideal transshipment hub where giant container ships can drop off and pick up their multi-thousand TEU loads and then have the containers moved on to their final destinations or vice-versa by smaller feeder vessels. In this way, while the entire trip can be made by ship, the bulk of the journey (to and from the transshipment hub) can be accomplished on the biggest, most cost-effective vessels.However, if a sufficient hinterland connectivity can be provided to and from Vizhinjam, the port could actually service faraway points in the hinterland without transshipment. Which is why our plan to expand the potential of the project had efficient road and rail hinterland connectivity as a key recommendation.


 Road and Rail Connectivity proposal for Vizhinjam

This is the first reason to establish a South Indian Industrial Corridor (SIIC) with Vizhinjam as its southern anchor port, in association with Tuticorin. With its 18 m draft easily scalable to 25 m, Vizhinjam is future-proof in terms of handling the biggest ships in the world, including the 18,000 TEU Triple-E ships that Maersk is currently building. It can also handle the biggest supertankers, dry-bulk carriers and LNG tankers out there as well. The way the CBIC is currently planned, almost all the traffic to and from it would be handled by the Chennai cluster of ports together with Krishnapatanam. While this may justify mainline container calls, together with calls at Mundra/Pipavav but overall it would be a far less ideal choice because these ports would be far less efficient than Vizhinjam at transshipment to other South Indian ports like Tuticorin, Ernakulam and Mangalore, and thus less likely to challenge Colombo's current dominance, at least in the foreseeable future. With its location at the top of the sub-continent Vizhinjam is ideally positioned to service both the West and East coasts and thus offers the most efficient option to aggregate loads meant for ports along both coasts, an advantage hitherto enjoyed by Colombo enabling it to out-compete deeper, bigger ports such as Singapore, Salalah and Dubai for Indian cargo. Vizhinjam can bring this same advantage to the SIIC, but on Indian soil!

The second reason that the SIIC makes even more sense that the more limited CBIC proposal is because it allows for a much larger industrial base to be tapped, rather than just that present in the Bangalore-Chennai-Cuddalor belt. An SIIC can tie together the entire industrial heartland of Tamilnadu, including well established clusters such as Salem, Coimbatore, Tirupur, Erode, Karur, Tirunelveli, Sivakasi and Tuticorin, and would be anchored by deep water ports at either end. Such a combined corridor would encompass nearly 50% of the over $400 Billion GDP of the four South Indian States.

The third reason answers those of who may ask why this cannot be done within Kerala, so that our own State can maximise the benefit from Vizhinjam for which the State Government is shouldering 75% of the cost. The simple fact is that Kerala simply does not have the land to support such a large industrial super-cluster. Even the much smaller industrial cluster projects, trumpeted at Emerging Kerala, will need extensive land acquisition, including agricultural land/wetlands, and wide-spread displacement of people. With plenty of land available along its length in Tamilnadu, the SIIC would be unhindered in its growth. 


 Proposed alignment of the South India Industrial Corridor
(Industrial nodes are marked in Red; Ports in Blue)

There are two possible alignments between Chennai and Trivandrum to be considered. The first is Chennai-Tiruvannamalai - Trichy - Dindigul - Madurai - Tirunelveli - Trivandrum, with a link to Tuticorin. The second is Chennai - Tiruvannamalai - Salem - Erode/Tirupur - Coimbatore - Dindigul - Madurai - Tirunelveli - Trivandrum, again with a link to Tuticorin. The second alignment also brings the Palakkad industrial region, on the Kerala side of the border near Coimbatore, into play as a beneficiary. The first alignment follows the existing Chennai - Trivandrum railway line via Trichy. Indeed, the best option would be to have both alignments developed simultaneously.

Corridor Infrastructure 

As with the DMIC project, the core of the SIIC has to be a high-capacity freight transport system, preferably rail-based because rail transport is more cost-efficient and environmentally friendly. The existing rail lines can be beefed up with two additional dedicated tracks capable of supporting high speed passenger (150-200 Km/hr) andheavy-weightfreight trains. Or a completely new rail alignment can be developed depending on the availability of land, with the latter opening up the option of developing new industrial clusters in areas with low density of population.

The recent decision of the Union Cabinet to allow private investment in enhancing rail capacity along mainlines in addition to building spur lines for factories, power plants, ports and mines, will be a key enabler of the construction of the rail infrastructure.The keen interest shown by the Japanese to fund the CBIC project will surely extend to the much larger and more rewarding SIIC project as well. Other multinational institutions such as the World Bank and the ADB can be roped in as well, in addition to private investors.

A key hurdle to the industrial of South India has been the acute energy shortage facing the region in the recent past. Already reeling under a 20% power deficit, the rapidly growing South will suffer worse shortages as capacity addition is well behind demand. For example, till date only one UMPP - the long-suffering Reliance project at Krishnapatanam - has been awarded yet, compared with two (Tata Power and Adani) just at Mundra Port in Gujarat! The SIIC would be a disaster if this crisis is not resolved quickly. One pragmatic solution would be to harness the world's fastest growing energy source, no not solar or wind, but natural gas that is rapidly breaking down the bastions of the reigning energy kings, coal and oil. Spurred by massive gas discoveries in the US, Australia and East Africa, natural gas is likely to become the fuel of choice for power generation and industrial uses across the world. Global prices are beginning to match those of coal on an energy equivalent basis and short of nuclear fusion being discovered in the next few years, it seems inevitable that natural gas import (India's domestic supplies are limited and even those have been under-performing) has to be an integral component of the development of industry anywhere in the country. Liquified Natural Gas (LNG) is the preferred mode of import and needs the establishment of LNG import terminals which receive giant tankers carrying the liquified gas, re-gassify it and store it before it is distributed via pipeline or sent to a power plant. Currently, the only LNG terminal in South India is the long delayed and yet-to-be commissioned Petronet terminal at Ernakulam. This project is currently starved of demand because its pipeline has not been able to make much headway through densely populated Kerala and because its anchor customer, NTPC, pulled out. 

This much is clear, as is the opportunity to develop an LNG import terminal as part of the Vizhinjam project. As one of the very few ports in India capable of handling the world's biggest LNG tankers, the recently commissioned Q-max class, Vizhinjam can import natural gas in greater volumes and consequently at cheaper rates, than any other Indian port. As mentioned in the discussion on Vizhinjam's masterplan, the port is also closest to emerging LNG sources in Australia and East Africa, not to mention potential imports from the US and Russia (via the Straits of Malacca). Building a high-capacity gas pipeline along the SIIC will enable distribution of natural gas to industries and power plants along the Corridor. A pipeline from Chennai to Tuticorin, planned as an extension of the Kakinada-Chennai gas pipeline had been awarded to Reliance, but the contract was recently terminated owing to non-performance. This idea can be revived and the gas can be used to directly fuel industries such as fertilizer, textile and cement manufacturing as well as to set up de-centralized generating facilities and Combined Heat and Power (CHP) systems. Energy can also be transmitted as electricity, by locating one or more large gas-fired power plants near Vizhinjam and transmitting the power along high-capacity lines built along the Corridor. Gas-fired power plants are very compact and very efficient. Even with the land constraints around Vizhinjam, a 2000 MW plant is quite possible since it would need less 100 acres of land. If we consider using 260,000 ton capacity Q-Max ships to import the LNG, Vizhinjam could easily include a 10 Million tons/year import terminal with just a single berth located near the South end of the breakwater.

 The LNG terminal is mentioned (as a non-container berth) in the lower right corner

To put a 10 Million tons/year LNG terminal into perspective, it's about as much LNG import capacity exists in all of India as of today or it can generate nearly 10,000 MW of power, nearly 3 times as much as Kerala needs today. 

In short, the inclusion of Vizhinjam in a possible SIIC project will be a strategic advantage enabling it to not only compete with the DMIC for investments from national and global firms but also to make it truly world-class and able to compete with upcoming and established industrial clusters across the world in places from China to the Middle-East to the US. 

In return, Vizhinjam will get access to world-class connectivity that links it to an extensive hinterland that encompasses over half of South India that will enable it to more quickly realize its potential to be a world-class hub port. It will help the port diversify beyond container transshipment, to cargoes such as LNG. Of course, consolidating the LNG demand in the densely populated Southern districts of Kerala and the industrialized southern districts of Tamilnadu would easily justify an LNG terminal on its own, albeit a smaller one. This will generate more direct and indirect employment from the port, especially if a logistics/industrial cluster can be developed close to the port, even if at a smaller scale than would be possible in the wide open spaces in Tamilnadu.

One thing is very clear, Kerala is much better off being a partner and investing in an industrial corridor of this kind rather than on day dream projects that would probably end up costing as much and not return a single bent nickel in the end. But then we need to convince decision-makers who cannot even see the value of the Vizhinjam project itself and have very publicly chosen to consign it to the last rows of the priority list, buried well below "dream projects" and barrels of pork for their constituencies.  

A tall task, but the only really lost cause is the one left unpursued!

Flying High Over Trivandrum - Towering National Pride

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After getting delayed for over a year due to issues with clearance from the Airports Authority of India, one of India's tallest flagpoles will soon bear the National Flag over the historic Kanakakkunnu Palace in Kerala's Capital. The 200 foot flagpole, paid for by MP and Billionaire Naveen Jindal's Flag Foundation of India, was laid low (pun intended) because the Kerala Tourism Department neglected the minor detail of getting permission from the Airport Authority of India for putting up the towering structure in the center of the city and literally across the road from its headquarters building, Parkview.

The project is one of the many being promoted by Trivandrum MP and Union Minister of State for Human Resources Development, Dr Shashi Tharoor. It seems that after a slight trimming of height, the giant flagpole will soon bear an equally enormous tricolor, with a huge mobile crane lifting the pole into place during the night of December 19th. A friend of mine promptly snapped the operation and sent me a few of his pics.

May it fly forever above the historic and proud Capital City, and may it herald years of prosperity and happiness as its smaller counter-parts do before festivals at our temples and churches!

Jai Hind! 





 

Photos Courtesy: Saranjith at Trivandrum Developments FB page


Flagpole and Flag at Jindal Global University campus in Haryana

Update

Pictures of thecompleted flagpole, again courtesy of the same friendly photographer.



 

2012 Round Up - A Forgettable Year

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It's official, there is a 2013, the Mayan Calendar got it wrong or got it too soon. Quite a few souls must have breathed sighs of relief, well, except for those who spent thousands of dollars on life-boats, arks and other assorted devices to save themselves from the Apocalypse. For the people of Trivandrum, a collective sigh of relief at the end of an eminently forgettable year cannot come too soon, albeit the way ahead doesn't seem any better.

Eventhough all bets were off ever since the UDF came to power, with its mix of regional interests representing nearly every part of the State except for erstwhile Travancore, 2012 plumbed new depths in terms of development, or rather the evident lack of it. 

Every single one of the major development projects in and around Trivandrum, with the notable exception of Technopark, has become becalmed or has been sabotaged with extreme malice.

First and foremost, the Vizhinjam project has lost its way since the culmination of the operator bid process initiated by the LDF Government in 2010. After only a single bidder made it all the way to the end, following the disqualification of the second one on "national security" grounds, the Government deemed its bid inadequate to meet its exacting standards and dumped it in mid-2012. At the same time, they were busy handing out contracts for projects in other cities without even the pretense of a tender and dreaming of Rs 1,60,000 Crore bullet trains. Since then, the project has not made any tangible process other than the finalization of its master-plan, in which a small team of citizens, including yours truly, was able to play a small part, with the timely and able assistance of Dr Shashi Tharoor. The project was then hit by a determined attempt by a group of local resort owners to block its development using the ombudsman of its prime consultant, IFC. Not for the first time, popular opinion and reaction rose to the project's support but the jury is still out on the outcome of the sabotage attempt. In the meantime, the Government has dilly-dallied on the environmental clearance, the land acquisition and on the task of finding a new operator. In the wake of failures of bids for major container terminals at Mumbai and Chennai, the best way forward seems to be the MoU route to find and engage a capable operator on mutually beneficial terms, but not a single effort along these lines has been taken. Vizhinjam found scarcely any mention in the Government's much trumpeted, but apparently ultimately unsuccessful investment mega-drama, Emerging Kerala. Without forceful and quick action on finalizing the environmental clearance, identifying a capable operator and getting the construction tender underway, the project looks like it's going to be stuck in limbo for a long time yet, perhaps until the people of Travancore decide to reverse the mistake that was made on November 1, 1956. The only other relatively bright note in this half-a-century old saga is that VISL has achieved financial closure for the project.

Two more long-pending infrastructure projects ended the year as they had started it, going nowhere fast. The 4-laning of the NH-66 between Kazhakkoottam and the TN-Border, not to mention between Cherthala and Kazhakkoottam, that was stuck in the "how wide should roads in Kerala be" debate, has made scant progress. Towards the end of the year, Dr Shashi Tharoor seems to persuaded the powers that be to take a pragmatic step towards breaking the deadlock by getting the NHAI to agree to widen the stretch between Kazhakkoottam to Kottukal where land is already available and then following it up with the rest of the project as and when land is acquired. Hopefully, works should begin in mid-2013 towards widening at least the 28 Km stretch where land is available but 2012 was filled with nothing but traffic congestion and a string of tragic road accidents. This was even more horribly true of the Karamana-Kaliyikkavila, the 4-laning of which has made absolutely no progress since it was announced in the twilight of the last Government. Other than a string of promises to speed it up, precious little has happened on the ground despite intense public pressure and multiple accidents and thousands of man-hours lost every day. While hundreds of Crores are spent on land acquisition for projects in other districts and land acquisition officials meant for the project often diverted to other duties, the desperately needed project to widen one of Kerala's most congested roads gets more and more lost in the endless tangles of red tape.

Meanwhile, the Trivandrum City Road Improvement Project which yielded a major upgrade of the Capital City's arterial roads over the 2005-10 period has made little progress with its last few pending components such as the Thakaraparambu flyover, the Pettah rail overbridge, the widening of the bottleneck at the Pattoor or the widening of the Vanchiyoor-Court stretch. The Government's dilly-dallying with funding for the project and its lack of resolve in moving traders from the flyover site have resulted in nothing further than a few piles being driven in the last 12 months. A tussle over a few trees has dead-locked the widening in front of the Court complex at Vanchiyoor while the State Government seems to have made little headway in working with the Railways on the lone rail overbridge that has now been pending for 7 years. The only silver lining for the pioneering urban infrastructure project is that the Medical College-Kochulloor and the Overbridge-Thampanoor-Aristo stretches will soon be completed despite the best efforts of agencies like the Kerala Water Authority to prevent that ever happening! So even as the Government announced plans to emulate TCRIP at a half-a-dozen other cities, it has shown a very evident lack of resolve at completing the prototype itself.


Another area where Trivandrum was supposed to have shown the way for the rest of the State was in solid waste management. After a year where the waste processing plant at Vilapilssala was shut down after widespread protests over pollution caused by its irresponsible management by the Corporation, and an even more irresponsible response by the State Government, which came up with a series of hare-brained solutions to cover up its inability to solve the issue despite a strong directive from the High Court, Trivandrum teetered on the edge of a public health disaster. The Corporation and the State Government spent more time trading barbs and insults than they did on trying to come up with a pragmatic solution. The former is to blame for running the plant in a predictably unprofessional manner and not expanding its facilities to meet the needs of a growing city and to prevent air and water pollution. The latter showed utter disregard for the health and wellness of the people of Trivandrum, not to mention the cleanliness of the State Capital, and has not shown any genuine interest in solving the impasse which affects the lives of about 2 Million people. Their proposed solutions have included dumping waste in quarries, burning it in a truck and autoclaving it with steam - every single one of which has blown up in their faces (not literally, not yet anyways!) in very short order. Oh yes, the honorable Minister for Health (who happens to have been elected from Trivandrum, although he seems to have long forgotten that inconvenient fact) was on tour in the US at the time the epidemics were at their peak. The year ended as it began, in dead-lock and with the citizens concerned for their health and their lives.

One would think that this is sufficient ground for a Public Interest Litigation, but apparently not. The State Capital's tired public seems to have extended its apathy at half a century of neglect to this issue as well. All the more surprising when a so-called "concerned citizen" did find enough time and money to file a PIL against the first-ever demonstration drive by a Formula 1 car in Kerala, planned by Indian race driver Narain Karthikeyan, because it would violate "speed limits". Lo and behold, it seems that the demo drive, even on a cordoned off stretch of road, was deemed too risky as if everyone else, including assorted cars belonging to Ministers, KSRTC and private buses and every other private individual always drives below 40 Kmph on city roads! In the end, as with almost everything else related to our city, the State Government failed to take a strong decision in a timely fashion (the Tourism Minister was apparently touring Kashmir at the time to study how to promote tourism!) and the whole event, which could have attracted a lot of tourist interest, fell through. I am sure the intrepid litigant has a speed limiter installed on his car or maybe he still drives an old Premier Padmini that can do no better than the magical 40 Kmph. Talk about utter joblessness.

2012 began with much ado about the mass transit project proposed in Trivandrum, but it ended with little or no progress made, and a lot of confusion in between. The project began all topsy-turvy with the Government fixing the route and technology BEFORE the scientific study commissioned through NATPAC. The usual practice is to let the experts study the market and determine the best route network and the most appropriate technology for the particular area, rather than have politicians who have no clue whatsoever about the technical complexities of a mass transit project fix everything based on gawd-knows-what! In the middle of this, the Government also came up with a rather ridiculous "pod-car" proposal. For a while this threatened to further screw up the mass transit system by claiming to share the same route along M.G. Road. While this threat seemed to have abated later in the year, a new one showed up almost as soon as the NATPAC report came out. E. Sreedharan, the Kerala Government's go-to-man for any problem under the Sun, abruptly reversed his very public skepticism of monorails (the multi-hundred Crore fee streams must have been very interesting!) and pronounced himself the savior of the monorail projects in Trivandrum and Calicut. Since then procrastination has been the very definition of the project with a very sketchy detailed (or not-so-detailed) project report being submitted by Sreedharan & Co only a couple of weeks ago, a report which not only reduced the scope of the project nearly in half but also doubled its implementation period (supposedly due to concerns about "land acquisition", which are conveniently absent in the case of its other projects in Kerala). In the meantime, the Government was caught red-handed trying to divert money allotted for the Trivandrum MRTS project to its pet project in Calicut and Sreedharan tried to muddy the waters further by proposing first a heavy-rail metro and then a magnetic levitation monorail in Trivandrum. All in all, we are left with a curtailed project, a completely uncertain schedule, a totally disinterested Government that's only focusing on the projects in Ernakulam (for which they recently moved Heaven and Earth to rubber stamp DMRC as the project agency) and Calicut and nothing more than lip-service about raising funding for the project. In short, our MRTS project is going nowhere fast, especially not when it has been clubbed under one company with its cousin in Calicut. We can guess where the money will go to. My suspicion, something shared by a lot of other people as well, is that the project in Trivandrum was just proposed as a smoke-screen to justify the all but sure expenditure of State funds on a large scale in the project in Ernakulam where external funding still has not been tied up, despite Sreedharan's claims that he takes decisions for JICA and will unlock their coffers for them.

While on the subject of rails, the long pending railway development needs of Trivandrum have made very little headway, other than the commencement of two services announced a long time ago - the Trivandrum-Kollam commuter rail and the Trivandrum-Chennai Duronto - both of which were brought to fruition by the intervention of Dr Tharoor with the Railway Minister and the Chairman of the Railway Board. These services are still plagued by the chronic shortage of coaches that afflict the Trivandrum Division. The development of the Kochuveli and Nemom terminals, which would solve this among other problems such as the congestion of Trivandrum Central and the long list of pending services that are yet to start off due to lack of capacity, have made little or no progress respectively. Add to this, the constant hijacking of key railway offices allotted in the Divisional HQ at Trivandrum to Ernakulam by vested interests in the hierarchy of the Railways and this has been a mixed year at best and another bad one at worst. Since its expansion in 2011, the Trivandrum International Airport's growth plans have also been on ice with the Governent showing little interest in acquiring the 25 acres needed for the next phase of development even while it pushes ahead with acquiring hundreds of acres for the Kannur airport and rubber stamping the filling of hundreds of acres of paddy fields for the Aranmula Airport (yes, there's an international airport planned there!).

The list of woes continues but I will not try to paint an even gloomier picture than it already is. For example, a section of lawyers based in Ernakulam want to wind up the Kerala Administrative Tribunal (KAT) set up in Trivandrum, an initiative of former Law and Ports Minister, M. Vijayakumar. Not content with denying the restoration of the High Court Bench in Trivandrum, this lobby is probably very vexed that the majority of service-related cases that form the majority of the case load at the High Court in Ernakulam, will shift to the KAT and threaten their cushy existance even if it means saving Crores for the State in terms of not having to pay for the expenses of Government officials traveling 200 Km North to testify and participate in these cases. Here again, the only voices raised in protest were those of Mr Vijayakumar and Dr. Tharoor. The Government curiously has been keeping mum.

There have been rare instances of light shining through the firmament of dark clouds over the city. Most notably, Techopark has been making solid progress with completion of its mammoth 1 Million SF first building within its Phase III campus, as construction proceeds apace at the TCS, Infosys and UST Global campuses, adding nearly 3 Million SF of additional space and generating 30,000 more jobs. Infosys also took another 50 acres, this time at Technocity, for its second campus in Trivandrum, that's expected to add another 2 Million SF of space and 20,000 jobs to those in the first campus which is partly operational. The reason that this progress has been unaffected? Because, most of these are independent of the Government. The IT companies are of course paying for their own sprawling campuses and the last Government gave the go-ahead for the Phase III buildings. Despite the rapid consumption of the space available in the new building by companies including Oracle, Accenture, Cap Gemini and ITC Infotech, this Government has taken no step to commence construction of the next building in order to ensure a steady pipeline of space for incoming companies. Surprising, isn't it, especially considering that there has been no significant space absorption in any other IT park in Kerala and that this Government has made no headway with its own Frankstein creation, the so-called "Smart" City? Not so surprising, if the game plan is to put a "take deviation to Ernakulam/Calicut" sign once space sells out at Technopark, a strategy that has been put to use in the past many a time, starting with Wipro and CTS almost a decade ago. On a geographically contiguous note, the construction of the 50,000 seater world-class cricket and football stadium for the 35th National Games of Indian, just 1 Km from Technopark, is well underway. This will be Kerala's first International Cricket stadium and is expected to be open for business towards the beginning of 2014.

In summation, 2012 was not a year to look back on with fond memories. Period. It was a year that should make us wonder about the choices at least some of us made in the elections of recent years. There are at least a couple of people to vote for again (no, I am not trying to influence you.....!). The rest don't seem to care about us, at all. The bottom line also is that there's widespread apathy amongst us, and little urge to act upon this abject neglect for the State Capital. Till we start to react - be it little things like participating in an email campaign for Vizhinjam or correcting your cubicle mate when he/she bad-mouths the city - or perhaps, hoisting the Travancore colors on the 200 foot flagpole at Kanakakkunnu and declaring the end of the 56 year-old travesty that we have suffered. Tempting, isn't it?

How will 2013 be? Who knows, but stay tuned for my stab at predicting if this year will be any better than the last. 
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