To strengthen India's inland waterways industry, the Inland Waterways Authority of India (IWAI) and the multinational logistics giant Rhenus Group inked a deal early this week.

Rhenus Logistics India Pvt. Ltd. is said to start scheduled barge operations across the National Waterways (NWs) in India thanks to the memorandum of agreement (MoU).

According to reports, Rhenus is expected to initially run on the Indo-Bangladesh Protocol (IBP) route as well as National Waterways 1 (Ganga), 2 (Brahmaputra), and 16 (Barak).

Rhenus believed to gradually add 100 barges to the national canals as part of the MoU.

The first phase is said to involve the deployment of 20 barges and 6 pushers, with the goal of moving over one million tons of cargo yearly by the end of 2025.

Union Minister of Ports, Shipping and Waterways (MoPSW), Sarbnanda Sonowal says, "Our ministry, with such initiatives, is focused on unlocking the full potential of inland water transport as a national growth engine powering the hinterland towards sustainable development and vigorous growth."

 

Further, reports state that these activities will help carry bulk and break-bulk goods throughout North, East, and Northeast India, with a gradual growth to other NWs.

The development intends to incorporate international best practices into the Indian IWT ecosystem by utilizing Rhenus's global fleet of more than 1,100 barges and its expertise in European inland navigation.

In the course of the last 10 years, cargo transportation has increased from 30 MMTPA in 2014–15 to 133 MMTPA in 2023–24, totaling approximately 779 MMT.

The Ministry of Ports, Shipping & Waterways oversees IWAI as the National Waterways nodal agency.

The action is also regarded as a significant accomplishment of the World Bank-backed Jal Marg Vikas Project, which aims to improve National Waterway-1 (Ganga River). To enable smooth freight and passenger flow, the IWAI is actively constructing terminals, navigational locks, community jetties, and maintaining dredging activities.

Under Prime Minister Shri Narendra Modi's leadership and Minister Sonowal's strategic direction, India's inland waterways industry is expanding quickly. River cruise services are available on 13 national rivers, and the number of operational waterways has grown from 24 to 29. Cargo traffic has reached a record 145.84 million tonnes.

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In addition to improving freight flow, this partnership between IWAI and Rhenus Logistics India is anticipated to boost the economy, ease traffic, and create a more environmentally friendly logistics ecosystem.