India inks deal to fuel cargo growth on national waterways

There will be 100 cargo vessels deployed.

India’s Ministry of Ports, Shipping and Waterways has signed a memorandum of understanding with Rhenus Logistics India Private Limited for barge services in the country’s various national waterways.

Under the deal, signed by the ministry’s Inland Waterways Authority of India (IWAI), Rhenus Logistics will deploy 100 cargo vessels along with pusher tugs in a phased manner along NW-1, NW-2, NW-16 and the Indo-Bangladesh Protocol (IBP) routes. 

About 20 barges and six pusher tugs will be deployed during the first phase, which will start in the third quarter of 2025. A combination of pushers and barges will be used to transport bulk and break-bulk cargo across North and East India, North-East India, and to neighbouring countries. 

The operations will gradually be scaled up to include other national waterways in the country.

Union Minister Sarbananda Sonowal said this agreement “will ensure effective utilisation and expansion of waterways infrastructure, thereby lowering the operational costs, making IWT sector more competitive and responsive to market demands.”

India currently has 29 operating waterways. Cargo traffic on national waterways has touched an all-time high of 145.84 million tonnes, with the newly introduced ‘Jalvahak’ Cargo Promotion Scheme expected to further push this growth.  

Launched in December last year, it incentivises cargo owners and movers up to 35% of the total actual operating expenditure incurred on a waterways journey.