Massive Shift in Logistics: Cargo Movement on Indian Waterways Surges to 218 MMT Amid Infrastructure Push

Massive Shift in Logistics: Cargo Movement on Indian Waterways Surges to 218 MMT Amid Infrastructure Push​

The focus on multimodal logistics and inland water transport (IWT) is gaining significant momentum in India. Government initiatives are actively promoting IWT as a viable alternative to road and rail, leading to substantial growth in cargo movement across National Waterways (NWs). Cargo movement on these waterways has increased significantly, growing from 18 Million Metric Tons (MMT) in the 2013-14 period to 218 MMT by 2025-26.

Economic Efficiency of Inland Water Transport​

IWT presents a highly economical and environmentally friendly mode for moving goods compared to traditional land transport methods. When assessing economic modes at the price level of 2014, IWT offers substantial savings. The cost of freight via IWT is recorded at Rs 1.06 per Tonne Kilometers (TKm), which is significantly lower than the prevailing rate of Rs 1.36 per TKm for Railways and Rs 2.50 per TKm for Highways.

The ecological benefits are equally compelling. In terms of carbon emissions, waterways demonstrate a very low environmental footprint. The designated rate for emission of GHGs for Waterways is 0.0006 (Rs/TKm), matching that of Rail. This highlights IWT’s role as an increasingly sustainable mode in the national logistics chain.

Policy Measures Boosting Multimodal Integration​

The government has rolled out comprehensive policy measures to streamline and incentivize the inland waterways sector. To encourage cargo owners, the Jalvahak Scheme provides a 35% incentive for utilizing inland waterways transport on NW-1, NW-2, and NW-16 via the IBP route. This scheme is being implemented at an estimated cost of INR 95.42 Crore over three years.

Further bolstering the industry is the extension of the tonnage tax scheme to all vessels registered under the Indian Vessels Act, 2021. This stable taxation policy aims to reduce the financial burden on vessel owners and boost the sector's overall competitiveness. Regulatory clarity has also been provided through The National Waterways (Construction of Jetties / Terminals) Regulations 2025.

Technological Advancement in Logistics Operations​

To ensure seamless integration across different transport modes, specialized digital platforms have been developed by various authorities. The Maritime Single Window (MSW) Sagar Setu functions as a centralized message exchange platform for the maritime sector. This MSW is integrated with critical systems such as the Freight Operations Information System for Railways cargo and the Unified Logistics Interface Platform for road transport.

In addition to these national platforms, Inland Waterways Authority of India developed the CAR-D (Cargo Data) Portal. This web-based portal facilitates the collection, analysis, and dissemination of all cargo and cruise movement data on National Waterways. These integrated digital tools are designed to improve data sharing and minimize manual interventions across transport modes.

Infrastructure Development Across Key Corridors​

Infrastructure development is progressing steadily, supporting the growth trajectory of IWT. For instance, four dedicated jetties for cruise vessels have been constructed at Jogighopa, Pandu, Biswanath Ghat, and Neamati on NW-2. Similarly, four floating concrete jetties were provided to the Government of Goa and installed on Mandovi River (NW-68).

Key infrastructure projects include the construction of a new Navigation Lock at Farakka. Furthermore, fairway maintenance activities such as river training, dredging, and channel marking are ongoing across various National Waterways. This work ensures that navigation channels maintain a required standard depth for smooth vessel movement.

Budgetary Allocation for Inland Waterways Projects​

The budgetary allocations show sustained commitment toward expanding the network. For NW-1 (Ganga Bhagirathi-Hooghly River Systems), budget allocation has seen continuous increases, rising to 616.27 Crore in 2025-26. The total budgetary expenditure across all projects stands at 1074.48 Crore as of the latest reporting period.

In Goa, focus is on specific waterways like NW-27 (Cumberjua Canal), NW-68 (Mandovi River), and NW-111 (Zuari River). The allocated funds for these canals amount to 77.52 Crore through 2025-26. Specific projects include the construction of four jetties on Mondovi River (NW-68) which have been successfully completed.