Chokka Thangam

About Sethusamudram and its Global Impact

July 15, 2008 · 3 Comments

This is a school project which was written before the canal became a major topic of debate. Let me also confirm that I think the current rounds of opposition to the project is stupid. This paper presents a somewhat optimistic analysis about the canal and its benefits. It is about Sethu Canal’s national and international impact (with specific focus on Singapore). I shall write about my views on the ongoing debate later on. But I am sure a lot of you will find this informative.

Sethusamudram and its National and Global Impact

Location

The canal is located along the South Eastern coastline of the Indian peninsula between the Indian state of Tamil Nadu and Northern Sri Lanka.

The proposed canal consists of two main sections. The first part connects The Gulf of Mannar to Palk Bay by cutting across the Adam’s Bridge or Rama’s Bridge. This is a shallow region between the Dhanushkodi on the Pamban island of India and Talaimannar on the Mannar island of Sri Lanka. The second part cuts through the shallow areas in the Palk straits towards the Coromandel Coast. The total length of the two channels is 89 kms.

Conception and Implementation of the Project

The first proposal to cut a canal across the Palk straits came from A.D.Taylor, a commander of the Indian Marines, in 1860. Apart from this, there were eight other proposals with various modifications suggested between 1860 and 1922 by the officers of the British colonists. They were never seriously considered as the project was thought to be unviable.

Since independence, there have been four official assessment reports on the feasibility of the project. They are:-

  • The Sethusamudram Project Committee Report – 1956. Committee headed by Sir A. Ramaswamy Mudaliar.
  • Nagendra Singh Committee Report – 1967. The committee was set up by the Union Government to examine the feasibility of the project.
  • Lakshminarayan Committee Report – 1981
  • Pallavan Transport Consultancy Services (PTCS) Report – 1996

Each of these reports found the project viable. The first three weren’t acted upon by the Government, possibly due to lack of sufficient funds for the project and lack of political will. During the 1990s, the Indian economy grew rapidly and the Government was generally optimistic about investing in the country. The PTCS was asked to submit a project feasibility report by the State Government in 1994. The report, apart from suggesting various changes to the proposed canal routes, made suggestions regarding improvement of infrastructure of the canal in order to facilitate easier movement of traffic. After studying the report, the Ministry of Surface Transport appointed the Tuticorin Port Trust (TPT) as the nodal agency to implement the project. The Ministry, in July 1997, asked the National Environmental Engineering Research Institute (NEERI), Nagpur, to prepare the Initial Environmental Examination (IEE) for the Project. The report from NEERI suggested the canal posed no significant threat to the environment. However, the report recommended a particular alignment of the canal along the Pamban Island in order to minimize the damage on the environment.

The project, as most other major ones in India, was really slow to kick off. In the Lok Sabha elections in 2004, the alliance led by the DMK completely whitewashed the opposition party in Tamil Nadu and became a key constituent of the Central Government. The DMK thus managed to garner many crucial ministries including the Ministry of Ports and Transport. With the DMK, a vociferous supporter of the project, controlling the ministry of Ports, the project really took off and the ground work for the project started at fever pitch. TPT hired M/s. L&T-Ramboll Consulting Engineers in 2004 to provide a detailed project report. The report made a strong case for the project. The Union Government mobilized a plan to implement the project and it was inaugurated on June 2, 2005 by Prime Minister Manmohan Singh. The construction work is currently going on in full swing and the canal is all set to open in 2008.

Economic Benefits

The canal is slated to reduce the transit time between the west and east coast of India by 24 hours on an average. Currently, ships plying between the west and east coast have to circumnavigate Sri Lanka. Thus, the canal helps in reducing the transit distance by 335.3 nautical miles on an average. Ships using the canal will save around one day of transit time and fuel costs.

The canal, once completed, is expected to bring huge revenues to the Union and State Governments and transform the regional economy. The Government is investing heavily in the major ports of Chennai and Tuticorin and upgrading existing infrastructure anticipating increased traffic once the canal is completed. It is also developing 13 minor ports, including Ennore, Cuddalore, Nagapattinam, Thondi, Valinokam, Kolachel and Kanyakumari. This will lead to an overall improvement in infrastructure of the State and thus bolster international and domestic maritime trade and bring in greater foreign investment. There will be a great boost to local industries as export costs will be reduced.

The canal is also expected to benefit the fisheries industry of the state as fishing boats will be able to navigate through the Palk Strait which is not possible now. The State Government is building many fishing harbors along the coastline.

The canal is near the East-West International sea-route, one of the busiest navigation routes in the world. Ships sailing between the mid-east and Japan and China now pass between the Maldivian islands, circle the Sri Lankan coastline and then turn north east and sail through the Malacca straits. The canal would create a by-pass and thus divert the huge traffic of ships through India’s own waters. The revenue generated from the toll paid by these ships will be enormous and contribute greatly to the country’s revenue. The Tuticorin Port will become a major nodal port, similar to Colombo or Singapore.

Security and Strategic Benefits

Till recently, the Government largely ignored security of India’s naval waters due to lack of funds and persistent problems in the mainland. However, there is an increasing emphasis being given on controlling the waters of the Indian Ocean by the defense planners in New Delhi. This is largely due to reactionary thinking prompted by two major events : The acquisition of Diego Garcia by the US as a naval base in the Indian Ocean and the commissioning of an aircraft carrier by the US as a show of support for Pakistan during the Bangladesh War. Since the fall of the USSR, India could no longer rely on Soviet support in case of a showdown with US. Thus there was an urgent need to secure and control the country’s waters. The canal, along with planned forward bases in the Lakshadweep and Andaman islands, will play a key role in India’s plans to dominate the waters of the Indian Ocean. The canal helps by saving transit time between the west and east coasts and allows for easier and more secretive patrolling of the waters by the Navy.

The canal will also help negate the growing Chinese influence among South and South East Asian countries, most importantly, Sri Lanka. China, since the 1980s, has begun an ambitious project to build a series of naval bases extending from mid-east to its own coast in order to ensure its energy security. This project is popularly known as ‘The String of Pearls’. This involves building of forward bases and docks for Chinese ships in Pakistan, Maldives, Bangladesh, Myanmar, Thailand and Cambodia. The first of these forward bases is the port of Gwadar in Pakistan. The port is located at the mouth of the Persian Gulf in the mouth of the strategically important Straits of Hormuz and right in India’s backyard. Chinese efforts to gain access to the Trincomalee port in Sri Lanka was thwarted due to Indian pressure on Colombo. The canal will allow India to guard it’s waters much more effectively, reduce Chinese influence in the region and give India a strategic leverage over China.

The canal will lead to a much greater and more effective Indian presence in the surrounding waters including around the crucial Straits of Malacca. The Government has invested heavily in building a forward marine command and developing a port in the Andaman and Nicobar anticipating the increase in maritime traffic in the region. The forward base will allow it to gain control over the Straits of Malacca. Over 80% of Japan’s oil needs and 60% of China’s is sourced through these straits. Thus, the building of the canal and the base in the Andaman and Nicobar islands will give India huge strategic muscle against China, Japan and the entire international community.

Finally, the increased security along the canal will help control the growing influence of the LTTE’s naval arm, the Sea Tigers, in the coast between Tamil Nadu and Sri Lanka and prevent any Sri Lankan Tamil nationalist elements from spreading their influence in Tamil Nadu. It would also provide cover for fishing boats from Tamil Nadu against attacks by the fast attack crafts of the Sea Tigers.

Opposition to the Project

The greatest amount of opposition to the project has come from the environmentalist quarters. The canal is located very near the Gulf of Mannar National Biosphere Reserve.

This reserve has an immense variety of sea life and corals and is one of the most important bio-diversity hotspots in the world. The proximity of the canal to the reserve puts the reserve under grave risk. Oil-spills or releasing of effluents into the waters by the ships would result in an environmental disaster of enormous proportions. Also, coral reefs are extremely sensitive to temperature changes in the water. Even if the water temperature were to change by 1degree Celsius, the entire reef would perish. The dredging of the canal and the ships passing through may possibly cause a temperature change and this, again, would be disastrous. There has been great concern about how the dredged sand and rubble will be disposed without damaging the environment. Also, the fishermen in the region have protested violently against the building of the canal as they fear the canal may affect the traditional migratory routes of the fish and damage their breeding habitats in the surrounding reefs.

The implementing company, Sethusamudram Corporation Limited (SSCL) sought to address these concerns by undertaking various Environment Impact Assessment (EIA) Reports with the help of NEERI before the project work commenced. The EIAs recommended changes in the canal route to minimize the impact on the environment. These changes have been incorporated into the final blueprint. The result is that, the dredging work would cause the permanent loss of flora and fauna in about 6 sq. km of the region around Adam’s Bridge and 16-17 sq. km. in Palk Bay area. This is relatively insignificant when compared to the total reserve area of 10,500 sq. km. The report recommends disposing the dredged sand 25 km away from the reserve area to minimize environmental damage. There has also been a proposal to dump the sand in the degraded areas of Pamban Island to reclaim the land. This has not yet received approval from the Tamil Nadu Environment Ministry. Studies by NEERI show that there will not be any significant changes in current movement due to the canal and thus the migratory routes of fish wont be affected. The company also promises there will be only a temporary displacement of fishermen during construction period.

There are many who still raise questions about the viability of the project. According to them, the studies do not take into account the decreased speed of ships in the canal, the towing charges and various other operating costs. Thus the actual savings in terms of distance and time will be negligible and the ships won’t be sufficiently enthused to pay the heavy tolls that will be charged.

I personally feel that such theories are irrelevant as in the long run, the canal should definitely prove to be a financial and strategic asset. I think the country should make confident decisions based on well researched reports and shouldn’t hesitate to invest in its own future.

There is also a small group of people who oppose the canal as it damages the Rama’s Bridge, which they believe is a creation of God that should be left untouched.

Sri Lanka and Sethusamudram

The canal has raised a lot of concern in Sri Lanka. There were fears initially that the construction of the canal would cause some of the islands of Sri Lanka to submerge. Scientists, however, believe that there will be no significant geophysical changes caused due to the canal.

The maritime traffic around the southern Sri Lankan coastline is slated to reduce drastically once the canal is completed. It is estimated that Sri Lanka may lose up to 50% of its revenue from ports, including Colombo, due to the canal. Many suggest that the canal will seriously jeopardize the good relations between New Delhi and Colombo.

The proximity of the canal to LTTE controlled Northern Sri Lanka and Jaffna is another factor that cannot be ignored. Nobody really knows how this will affect either party, but both are equally anxious and suspicious.

Singapore and Sethusamudram

The Port of Singapore Authority (PSA) has leased out Berth 7 in the Tuticorin Port for 30 years and is operating it since 1999. There are plans to increase PSA’s investment in Tuticorin once the canal is completed. With the anticipated increase in traffic in the Tuticorin Port, the cooperation between PSA and TPT could prove mutually beneficial to both countries.

The canal could also host the ships plying the East-West International Sea Route which then touches Singapore in the Straits of Malacca. If this does indeed happen, Singapore and India could work together to coordinate the flow of traffic through the route and provide better service to these ships. Joint patrolling of the waters could also be taken up. This will reduce the threat of piracy that currently infests the waters around the Straits of Malacca.

On a more negative note, the canal will facilitate easier movement of Indian naval ships. With India bolstering its military presence in the Andaman and Nicobar islands, the threat of India blockading the mouth of the Straits of Malacca becomes even greater to Singapore and other countries that rely on the east-west sea route.

India has major plans to build a port in the Andaman and Nicobar islands, near the mouth of the Straits of Malacca. If the port can offer good berthing facilities and provide services at low costs, there is a chance that ships might forsake berthing at Singapore or other Malaysian ports.

The proposed port in the Andaman and Nicobar Islands assumes greater significance when viewed in the light of the Thai Canal. Thailand is very serious about building a canal through the southern part of the country, connecting Bandon Bay with Phangnga. Thailand can look forward to Chinese funding for the project as the canal would be another pearl in the ‘String of Pearls’ strategy, reducing China’s dependence on other western oriented countries for its energy security. If completed, the Thai Canal along with the Sethusamudram Canal would alter the current East West International Sea Route and completely obliterate the need for ships to sail through the Straits of Malacca. This would prove completely disastrous to the economy of Singapore which is essentially dependant on its port.

Bibliography

This essay has inputs from the following articles and sources:-

  • Selected Writings by Dharmeratnam Sivaram (Taraki)

        Geo-Strategic Implications of Sethusamudram

          Daily Mirror, 6 October 2004

          http://www.tamilnation.org/forum/sivaram/041006.htm

  • China’s pearl in Pakistan’s waters

          Sudha Ramachandran

          Asia Times, 4 March 2005

          http://www.atimes.com/atimes/South_Asia/GC04Df06.html

  • Official website of Tuticorin Port Trust

          http://www.tuticorinport.gov.in/

 

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