Beruflich Dokumente
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MINI PROJECT
Submitted by,
Nitheesh B
RA1652001010134
MBA (I sec, 2nd year)
SRM University
CONTENTS
INTRODUCTION
ECONOMIC ANALYSIS
IMPLEMENTATION PLAN
ESTIMATION OF COST
GANTT CHART
CONCLUSION
REFERENCES
INTRODUCTION
Public Transport System is an efficient user of space and with reduced level of air
and noise pollution. As the population of a city grows, share of public transport, whether road
or rail-based, should increase. Experience has shown that, in cities like Kochi where roads do
not have adequate width and which cater to mixed traffic conditions comprising slow and fast
moving vehicles, road transport can optimally carry 8,000 persons per hour per direction
(phpdt). When traffic density increases beyond this level average speed of vehicles comes
down, journey time increases, air population goes up and commuters are put to increased level,
of inconvenience. In any case, it is not feasible to operate bus transport beyond 10,000 phpdt
in mixed transport scenario, obtaining on Kochi city roads. With growing population and mega
development plans coming up for this port city, the travel demand is expected to grow steeply.
With inadequate public transport services, passengers will shift to private modes, which is
already evident from the high ownership trends in the region. This will not only aggravate the
congestion on the city roads but will also increase the pollution level. Peak hour traffic demand
on Alwaye-Petta Corridor has been assessed as 13,681 phpdt for the year 2015 and this is likely
to increase 21065 phpdt by the year 2025. Road-based public transport, therefore, cannot meet
this demand. There is an urgent need to introduce a light Metro system in the city to provide
fast, safe, economic, and environment-friendly mode for mass movement of passengers.
Carrying capacity of Light Metro System is up to 25,000 phpdt, which will be adequate to take
care of the traffic problems for Greater Cochin area for the next about 25 years.
The economic appraisal of Metro Corridor from Alwaye to Petta in Kochi has been
carried out within the broad framework of Social Cost Benefit Analysis Technique. It is based
on the incremental costs and benefits and involves comparison of project costs and benefits in
economic terms under the with and without project scenario. In the analysis, the cost and
benefit streams arising under the above project scenarios have been estimated in terms of
market prices and economic values have been computed by converting the former using
appropriate shadow prices. This has been done to iron out distortions due to externalities and
anomalies arising in real world pricing systems. The annual streams of project costs and benefit
have been compared to estimate the net cost/ benefit and to calculate the economic viability of
the project in terms of EIRR. The Economic Internal Rate of Return (EIRR) for the project has
then been arrived using Discounted Cash Flow technique to the net benefit stream at economic
prices. The cost and benefit streams arising under the above situations have been estimated in
terms of market prices and economic values have been computed by converting the former
using appropriate shadow prices.
The Economic Internal Rate of Return (EIRR) in economic terms works out to
14.2% for Alwaye-Petta Corridor of Kochi Metro. This falls to 13% and 12.9% respectively in
case of increase in cost by 10% or decrease in traffic by 10%. With increase in cost by 10%
together with reduction in traffic by 10%, the EIRR falls to 11.8%.
IMPLEMENTATION PLAN
Kochi Metro Project will be the biggest urban Project undertaken in Kerala state.
The Project has to be implemented through densely populated area along highly congested
routes. In spite of all efforts taken to mitigate inconveniences and hardships to the public,
certain sensitive land acquisitions and certain disruptions in the city are unavoidable. If the
Project has to go through fast, a visible positive support to the Project from the Government,
City Corporation and GCDA should be available. Each days delay in completing this Project
will hike up the cost of the Project by 15 lakhs. If the Project implementation is delayed, the
city will become more and more crowded and it will be practically impossible to carry out
construction activities later on. Therefore, a carefully drawn up strategy is necessary for
implementing this Project. As a first step, Kerala State Government should inform the Central
Government of its plan to go in for Kochi Metro Project through a Concessionaire route and
the support which it would need from the latter. Institutional Arrangement Experience of
implementing Delhi Metro project has shown that a Special Purpose Vehicle (SPV), vested
with adequate powers, is an effective organisational arrangement to implement and
subsequently operate and maintain a metro project. An SPV should, therefore, be set up for
Kochi Metro and registered under the Companies Act, 1956. This SPV should be a PSU of the
State Government and may be named as Kochi Metro Ltd. (KML) as already decided by
Government of Kerala. The Managing Director of KML is already in place and now the need
is to get all the approval of Central Government expeditiously. The Board of Directors (BOD)
are to be vested with full powers to implement the project with adequate delegation of power
to the Managing Director for day to day working. It is also recommended that a High Power
Committee under the chairmanship of Chief Secretary, Kerala should be set up. Other members
of this Committee should be Secretaries of the concerned Departments of the State Government
and Heads of civic bodies who will be connected in one way or the other with the
implementation of the project.
Once the SPV is formed, it has to start action for implementation of the project.
There are two options in this regard; either the SPV implements/operates the project itself with
funds provided by the Government or it entrusts the operation of the project to a Concessionaire
after construction.
A dedicated project team is being heavily utilized by the engineering firms. In order
to become fully functional, the project teams need to develop a sense of unity, identity and
purpose quite quickly. The success of the project team depends upon its empowering to
undertake its task.
For the Kochi Metro, the KMRL was setup as a dedicated project team. For his
whole- hearted service to the Indian Railways and efficient project management skills, E.
Sreedharan was appointed as the Project Manager. E. Sreedharan was known for delivering
and finishing projects within budgets and on time. The members of the DMRC were recruited
on strict instructions from E. Sreedharan on the basis of their efficiency, competency,
punctuality and integrity. The team-building was done on the basis of we mean strict business
attitude and ensuring there would be an absolute zero tolerance and adherence to complacency,
corruption and nepotism in order to negate chances of conflict to manifest during execution of
project.
Since the KMRL was a construction based project, the project life cycle is
represented in the following;
Feasibility: Project formulation, feasibility studies, and strategic design and approval. A
go or no-go decision is made at the end of this phase.
Planning and Design: base design, cost and schedule, contract terms and conditions, and
detailed planning. Major contracts are let at the end of this phase.
Construction: manufacturing, delivery, civil works, installation and testing. This facility
is substantially complete at the end of this phase.
Turnover and Start up: final testing and maintenance. This facility is in full operation at
the end of this phase.
The KML Organisation, as stated above, should be very lean but effective. It will
consist of a Managing Director with full Executive Powers and three Functional Directors
including Director (Finance). All the three Functional Directors will be full members of the
Management Board. The Directors will be assisted by Heads of Departments in each of the
major disciplines and they in turn will have supporting staff. The organisation should be
basically officer-oriented with only Personal Assistants and Technical Assistants attached to
senior officers by eliminating unproductive layers of staff such as Peons, Clerks, etc. We
strongly recommend that the total organisational strength is limited to 45 to 50 eliminating too
many tiers to enable faster decision-making.
It is necessary for the KML officers to get exposed to the Metro technology and
Metro culture through study tours of some of the selected foreign Metros and Delhi/Calcutta/
Chennai Metros.
Metro projects cannot be executed the way Government agencies execute projects
in this country. Timely completion is very important to safeguard their financial viability.
Being a rail-based project, for most of the systems such as rolling stock, signalling,
telecommunication, traction power supply, etc., persons with railway background would be
necessary.
Since KML will not have the required expertise and experienced manpower to
check and monitor the Concessionaires work it may be necessary to engage General
Consultants, from the very start who will do this job on behalf of KML or it should be got
implemented on deposit terms from any agency having the experience of construction of Metro
and also O & M.
ESTIMATION OF COSTS
The project cost comprises capital cost, operation and maintenance cost. Cost
components considered for the purpose of this exercise include:
Capital cost of infrastructure (civil engineering, land, track, power supply, traction system,
signalling and telecommunications, etc.) and rolling stock.
Operating cost of METRO
The given below table summarizes the estimated cost (Rs. in Crores) to economy
for Alwaye-Petta Corridor of Cochin METRO. The construction cost is estimated at Rs.
3733Cr.
Table 3: The Estimated Cost to Economy for Alwaye Petta Corridor of Kochi Metro in
2011
WORK BREAKDOWN STRUCTURE
Kochi metro rail project is the one of the lading project undertaken by Delhi Metro.
It involves construction of station work at various locations across Cochin. Considered one
station work for case study.
The technique was developed by Henry Gantt and Fredric Tailor and can be
identified as the scientific method of project planning. The method uses horizontal rods
representing time length of a task accomplishment for planning and tasks' names are written
vertically in separate columns. Every rod is place in front of every task and the chart shows the
starting date, accomplishment time length and finishing date of tasks
Gantt charts have gained wide acceptance and popularity mainly because of their
simplicity of and ease of preparation and understanding. No theory or complicated calculations
are involved. Anyone can understand them. Gantt charts particularly appeal to persons who do
not have a technical background. For example, some clients and upper-level managers may
better understand the plan for carrying out a construction project by looking at a bar chart than
by looking at a schematic of logic network. The advent of the critical path method (CPM) and
the evolution of powerful computers, Gantt chart did not perish or lose importance. Instead,
they evolved to a different supporting role that made them more valuable and popular.
Table 4: Risk Management Plan and Risk Register for Kochi Metro Rail Ltd.
CONCLUSION
Kochi is the commercial capital of Kerala as well as a centre for higher education.
Cochin Port has emerged as one of the most important ports in the country. Rapid urbanization
in the recent past has put the citys travel infrastructure to stress. With Vellarpadam Container
Terminal, Goshree Island Development project and industrial activities centred on Cochin
Shipyard, Cochin Refinery, Cochin Fertilizer Plant, etc., traffic in the city is expected to shoot
up. Being thickly populated area and with narrow roads, Kochis traffic needs cannot be met
by any road-based system.
In Kochi Metro there is not much scope of property development along the corridor
as land is not available for the same. However, there is scope to permit additional FSI for all
properties falling in the belt of 500 meters on either side of the metro alignment. This additional
FSI will have to be purchased by the land owner/developers at a predetermined premium per
FSI sq. m which can be reviewed periodically.
REFERENCES
Sharma, Dr. L. (2015), Project Management (A Case Study of Delhi Metro Project).
International Journal of Current Research. 7 (1), 11780-11784.
Prasad, N. V. and Govind, S. (2006) The Delhi Metro Project: Effective Project
Management in the Indian Public Sector. Hyderabad: The ICFAI Center for Management
Research.
Delhi Metro Rail Corporation (2011) Detailed Project Report - Kochi Metro Project.