Government focuses on major waterways to improve cargo movement and reduce logistics costs

The government of India has announced plans to expand the inland water transport (IWT) network as part of efforts to strengthen the country’s transportation infrastructure and improve the efficiency of cargo movement. The initiative aims to utilize rivers and waterways as cost-effective and environmentally friendly transport routes.
A key focus of the expansion is the development of National Waterway 1, one of the most important inland waterways in the country. This waterway stretches along the Ganga river system and connects major cities and trade centres across northern and eastern India. Improving infrastructure along this route is expected to significantly enhance the movement of goods.

Authorities are working on the development of modern terminals, navigation systems, and cargo-handling facilities to support inland water transport operations. These improvements will enable smoother transportation of bulk commodities such as coal, cement, agricultural products, and industrial goods through river routes.
The expansion of inland waterways is expected to help reduce logistics costs, which remain relatively high in India compared to many other major economies. Transporting goods through waterways is often cheaper than road or rail transport, particularly for heavy and bulk cargo.
In addition to economic benefits, inland water transport is also considered a more sustainable mode of transportation. Water transport generally consumes less fuel and produces lower carbon emissions compared to road transport. As a result, expanding the use of waterways can contribute to reducing environmental pollution and promoting greener logistics systems.
Improved inland water connectivity can also enhance regional trade and development by linking inland regions with ports and industrial centres. This can open new opportunities for businesses and support economic growth in riverine areas.
Experts note that strengthening inland water transport infrastructure will play an important role in building a multi-modal transport system in India. By integrating waterways with road, rail, and port networks, the country can develop a more efficient, sustainable, and cost-effective logistics ecosystem.

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