Government Enhances Inland Waterways to Support Logistics Movement
In a significant advancement for India’s inland waterways sector, the Inland Waterways Authority of India (IWAI) has entered into a Memorandum of Understanding (MoU) with the global logistics leader Rhenus Group. This agreement, signed in the presence of Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal, aims to enhance the efficiency and sustainability of the country’s transport system through the development of inland water transport (IWT). The partnership is expected to introduce scheduled barge operations across key National Waterways, marking a pivotal step towards a greener logistics network.
Details of the MoU
The MoU allows Rhenus Logistics India Pvt. Ltd. to initiate scheduled barge operations on major National Waterways (NWs) in India. Under this agreement, Rhenus plans to introduce a fleet of 100 barges in a phased approach, with an initial deployment of 20 barges and six pushers. This first phase aims to facilitate the movement of over one million tonnes of cargo annually by the end of 2025. The introduction of Inland Waterways Transport solutions will include scheduled barge services, which will gradually expand to cover more National Waterways in the coming years.
Minister’s Vision for Inland Waterways
During the signing ceremony, Union Minister Sarbananda Sonowal emphasized the potential of inland waterways to create a more cost-effective and environmentally friendly logistics network. He highlighted the government’s commitment to the Maritime India Vision 2030, which aims to enhance the country’s waterways system. Sonowal stated that this MoU empowers India’s waterways with global expertise, positioning them as a preferred mode for bulk cargo transport. He reiterated the ministry’s focus on unlocking the full potential of inland water transport as a key driver of sustainable development and economic growth.
Operational Plans and Expansion
Initially, Rhenus will operate on National Waterways 1 (Ganga), 2 (Brahmaputra), and 16 (Barak), as well as the Indo-Bangladesh Protocol (IBP) route. These operations are designed to facilitate the movement of bulk and break-bulk cargo across North, East, and Northeast India, with plans for gradual expansion to additional National Waterways. The partnership will leverage Rhenus’s expertise in European inland navigation and its global fleet of over 1,100 barges, ensuring the integration of best practices into the Indian IWT ecosystem.
Impact on India’s Inland Water Transport Sector
The collaboration is seen as a significant milestone in the ongoing ‘Jal Marg Vikas’ Project, which aims to enhance the capacity of National Waterways. The IWAI is actively engaged in various initiatives, including maintenance dredging, the construction of IWT terminals, and the establishment of navigational aids to ensure smooth cargo and passenger movement. Since 2014, India’s inland water transport sector has expanded remarkably, with the number of operational National Waterways increasing from three to 29. Cargo movement has surged from 30 million metric tonnes per annum (MMTPA) to 145.84 MMTPA, showcasing the sector’s transformative potential within the country’s multimodal logistics framework.
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