Waterways for Freight Transportation: Will It Work?

Are inland waterways good for transportation?

The Inland Waterways Authority of India (IWAI) says that 25 of the 111 national waterways (NWs) are suitable for cargo and passenger traffic. According to Rail India Technical and Economic Service, a branch of the Indian Railways, inland water transport is much more economical than rail and road transport. The development of inland waterways transport will also help decongest the congested rail and road network in India. Already development of inland waterways has been effective in increasing the movement of cargo by about 13% in 2020-21 as compared to 2019-20.

What are the major inland waterways?

Of the 25 National Waterways found viable for cargo/passenger movement, developmental activities are underway for 13. The Ganga-Bhagirathi-Hooghly river system is designated as National Waterway 01 and is 1,620 km long and flows through Uttar Pradesh, Bihar, Jharkhand, and West Bengal. Gujarat, Kerala, Goa, Assam and Andhra Pradesh are also among the states where inland waterways are under development. The Jal Marg Vikas Project to increase the capacity of the waterways was initiated by IWAI, and approved by the Cabinet Committee on Economic Affairs on 3 January 2018.

How will they help the economy?

The use of inland waterways wherever possible can help reduce transportation costs and time, which will have an impact on manufacturing and export competitiveness as the price of most commodities also depends on transportation costs. India’s logistics cost as a share of Gross Domestic Product (GDP) is estimated to be around 14% and the Center aims to bring it below 10%.

How is India developing inland waterways?

To promote inland waterways as a complementary mode of transport, the Ministry of Ports, Shipping and Waterways last year waived off user charges for a period of three years. The government has also come up with digital solutions such as a portal for cargo and cruise movement information and a portal for river navigation and infrastructure information. In order to promote economical and safe transport and bring uniformity in the law, the government introduced the Inland Vessels Bill 2021 in the Lok Sabha on 22 July.

Can it help regional trade?

With the addition of seven new ports of call on either side of India and Bangladesh, the access to inland water transport mode for trade is expected to increase and consequently increase traffic on national waterways. The inland waterway mode has been agreed to be included in the trade treaty between India and Nepal. Bhutan’s stone exporters have identified inland waterways as an alternative means of transport. IWAI supervised the first movement which was successfully executed in July 2019.