In a significant development for India’s inland water transport sector, the Inland Waterways Authority of India (IWAI), under the Ministry of Ports, Shipping and Waterways, has entered into a Memorandum of Understanding (MoU) with Rhenus Logistics India Private Limited to expand barge operations across national waterways. Rhenus Logistics, a Germany-based global logistics service provider, operates in more than 70 countries with an annual turnover of EUR 8.2 billion.
The agreement, signed in the presence of Union Minister Sarbananda Sonowal in New Delhi, marks a strategic step toward strengthening private sector participation in India’s inland water transport ecosystem. The event was attended by senior officials, including T.K. Ramachandran, Secretary at the Ministry of Ports, Shipping and Waterways, and Vijay Kumar, Chairman of IWAI, along with representatives from Rhenus Logistics India.
Under the MoU, Rhenus Logistics will deploy 100 cargo vessels and pusher tugs across National Waterways 1, 2, and 16, as well as the Indo-Bangladesh Protocol routes. The first phase of operations, set to begin in the third quarter of 2025, will introduce 20 barges and six pusher tugs designed for low-draft navigation, facilitating both bulk and break-bulk cargo movement across North, East, and Northeast India, as well as neighboring countries.
Union Minister Sonowal emphasized that this collaboration reflects India’s commitment to developing a resilient and efficient multi-modal logistics network. He noted that the partnership would foster innovation, attract capital investment, and enhance the competitiveness of the inland water transport sector by reducing operational costs.
The MoU underscores the success of the Jal Marg Vikas Project, a capacity augmentation initiative for National Waterway 1, supported by the World Bank. IWAI has undertaken several key infrastructure developments under this project, including maintenance dredging, the construction of IWT terminals, navigational locks, community jetties, and enhanced navigational aids to ensure seamless passenger and cargo movement.
With the visionary guidance of Prime Minister Narendra Modi and Minister Sarbananda Sonowal, IWAI has significantly expanded its operational footprint. The number of operational waterways in India has increased from 24 to 29, with river cruises now available on 13 national waterways. Cargo traffic on national waterways has reached an all-time high of 145.84 million tonnes, further propelled by the recently launched ‘Jalvahak’ Cargo Promotion Scheme. Introduced in December 2024, this scheme incentivizes cargo movement by covering up to 35% of actual operating expenses for transport via waterways. Additionally, a scheduled cargo service has been initiated on National Waterways 1, 2, and 16 through the Indo-Bangladesh Protocol route.
As India continues to integrate inland waterways into its broader logistics framework, the partnership between IWAI and Rhenus Logistics India marks a crucial step toward transforming waterways into a more efficient and competitive transport mode, ensuring sustainable economic growth.
