IWAI Signs MoU with Rhenus Logistics India to Enhance Cargo Growth
In a significant move for India’s logistics sector, the Inland Waterways Authority of India (IWAI) has entered into a Memorandum of Understanding (MoU) with Rhenus Logistics India Private Limited. This agreement, signed under the Ministry of Ports, Shipping and Waterways, aims to enhance barge services across various national waterways in India. Rhenus Logistics, a global logistics provider based in Germany, operates in over 70 countries and boasts an annual turnover of EUR 8.2 billion.
Details of the Agreement
The MoU was formalized in New Delhi, with the presence of key officials including Minister of Ports, Shipping and Waterways, Shri Sarbananda Sonowal, and other senior representatives from both IWAI and Rhenus Logistics. Under this agreement, Rhenus Logistics plans to deploy a fleet of 100 cargo vessels, including pusher tugs, in a phased approach. The initial phase, set to commence in the third quarter of 2025, will see the introduction of approximately 20 barges and six pusher tugs along National Waterways 1, 2, 16, and the Indo-Bangladesh Protocol routes. This strategic deployment aims to facilitate the transportation of bulk and break-bulk cargo across North and East India, as well as into neighboring countries.
Impact on the Logistics Ecosystem
Union Minister Shri Sonowal hailed the MoU as a pivotal step towards establishing a robust multi-modal logistics ecosystem in India. He emphasized the importance of private sector participation in the Inland Water Transport (IWT) sector, expressing optimism that this partnership will foster innovation and attract capital investments. The initiative is expected to optimize the use of existing waterways infrastructure, thereby reducing operational costs and enhancing the competitiveness of the IWT sector in response to market demands.
Supporting Infrastructure Development
The collaboration between IWAI and Rhenus Logistics is also a reflection of the ongoing Jal Marg Vikas Project, which is supported by the World Bank. This project focuses on enhancing the capacity of National Waterway-1 (River Ganga) through various infrastructural improvements. These include maintenance dredging, the construction of IWT terminals and navigational locks, and the establishment of community jetties. Such developments are crucial for ensuring smooth and efficient movement of both passengers and cargo along the waterways.
Growth of Inland Waterways
Under the leadership of Prime Minister Shri Narendra Modi and Minister Shri Sarbananda Sonowal, IWAI has made significant strides in developing the country’s waterways as a vital growth engine. The number of operational waterways has increased from 24 to 29, with river cruises now operating on 13 national waterways. Cargo traffic has reached a record high of 145.84 million tonnes. Additionally, the recently launched ‘Jalvahak’ Cargo Promotion Scheme incentivizes cargo owners and movers, offering up to 35% of actual operating expenses incurred during waterway journeys. This initiative aims to further stimulate growth in the sector, with a fixed scheduled service for cargo movement already initiated on NW-1, NW-2, and NW-16 via the IBP route.
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