Is the Centre Partnering with Rhenus to Transform India's Inland Waterways?
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Synopsis
The recent partnership between the Indian government and Rhenus Group is set to revolutionize the nation's inland waterway transport. With plans for 100 barges, this initiative aims to enhance cargo movement while promoting sustainability, making it a vital step toward a greener logistics network in India.
Key Takeaways
- MoU signed with Rhenus Group to enhance inland water transport.
- Deployment of 100 barges planned over the coming years.
- Focus on eco-friendly logistics and cargo movement.
- Initial operations on key National Waterways.
- Part of the larger ‘Jal Marg Vikas’ Project.
New Delhi, May 6 (NationPress) The Centre has entered into a Memorandum of Understanding (MoU) with the renowned global logistics firm Rhenus Group to initiate scheduled barge operations across India's significant National Waterways (NWs), marking a substantial advancement in eco-friendly river transportation within the nation.
Under the terms of the MoU, facilitated by the Inland Waterways Authority of India, Rhenus will gradually deploy 100 barges in the national waterways, beginning with an initial rollout of 20 barges and six pushers in the first phase, aiming for the transport of over one million tonnes of cargo annually by the close of 2025.
Initially, Rhenus will focus its operations on National Waterways 1 (Ganga), 2 (Brahmaputra), and 16 (Barak), along with the Indo-Bangladesh Protocol route. These operations are set to enhance the transportation of bulk and break-bulk cargo throughout North, East, and Northeast India, with plans for gradual expansion to other NWs.
This MoU aims to provide comprehensive Inland Waterways Transport solutions, including scheduled barge services, with the total number of barges expected to reach 100 over the coming years, extending coverage to additional NWs.
Utilizing Rhenus' specialized knowledge in European inland navigation and its extensive fleet of over 1,100 barges, this collaboration seeks to incorporate international best practices into India's Inland Water Transport ecosystem. A strategic mix of pushers and barges will be employed to accommodate low draft navigation for transporting both bulk and break-bulk cargo.
Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, stated, “With this MoU, we are empowering our rich and dynamic waterways system with global expertise, enhancing its efficiency as the preferred method for bulk cargo transportation in the country. Our ministry is dedicated to unlocking the full potential of inland water transport as a national growth engine, driving sustainable development and robust growth.”
“Inland waterways present a remarkable opportunity to establish a greener, more cost-effective, and efficient logistics network,” he added.
This partnership exemplifies the success of the ‘Jal Marg Vikas’ Project, which focuses on expanding the capacity of the National Waterway. As part of this initiative, the IWAI is undertaking comprehensive maintenance dredging, constructing IWT terminals and navigational locks, establishing community jetties, and providing navigational aids along the waterway to facilitate seamless passenger and cargo movement, according to a statement from the Ministry of Ports, Shipping and Waterways.
The event was also attended by TK Ramachandran, Secretary of MoPSW, Vijay Kumar, Chairman of the Inland Waterways Authority of India (IWAI), and other ministry officials, with the Rhenus team led by Vivek Arya, CEO of Rhenus Logistics India.
The operational number of National Waterways has increased from three in 2014-15 to 29 in 2024-25. Cargo movement has escalated from 30 MMTPA in 2014-15 to 145.84 MMTPA in 2024-25, contributing to a cumulative movement exceeding 779 MMT over the past decade. The sector, currently encompassing 14,500 km of navigable waterways across 111 declared National Waterways, is poised to play a transformative role in the nation's multimodal logistics framework, as noted in the statement.
Point of View
It is essential to recognize the transformative nature of this collaboration between the Centre and Rhenus Group. By integrating global expertise into India's inland water transport, this initiative not only enhances efficiency but also aligns with the country's goals for sustainable development. The focus on expanding National Waterways is a strategic move that can significantly contribute to the nation's economic growth and environmental objectives.
NationPress
21/05/2025
Frequently Asked Questions
What is the purpose of the MoU between the Centre and Rhenus Group?
The MoU aims to initiate scheduled barge operations across India's National Waterways to enhance eco-friendly river transport and improve cargo movement.
How many barges will Rhenus introduce initially?
Rhenus will initially deploy 20 barges and six pushers in the first phase of operations.
Which National Waterways will Rhenus operate on?
Rhenus will initially operate on National Waterways 1, 2, and 16, as well as the Indo-Bangladesh Protocol route.
What is the expected cargo movement target by 2025?
The target is to transport over one million tonnes of cargo annually by the end of 2025.
How has the number of operational National Waterways changed?
The number of operational National Waterways has increased from three in 2014-15 to 29 in 2024-25.
