New Delhi: In a significant boost to India’s inland water transport (IWT) infrastructure, the Inland Waterways Authority of India (IWAI), under the Ministry of Ports, Shipping and Waterways (MoPSW), signed a Memorandum of Understanding (MoU) with Rhenus Logistics India Private Limited today to operate barge services across key national waterways.
The MoU was signed in the presence of Union Minister of Ports, Shipping and Waterways, Shri Sarbananda Sonowal, at an official ceremony in New Delhi. Also present were Shri T.K. Ramachandran, Secretary, MoPSW; Shri Vijay Kumar, Chairman, IWAI; senior officials of IWAI; and representatives from Rhenus Logistics India.
Under the agreement, Rhenus Logistics — a leading German-based global logistics service provider with operations in over 70 countries and an annual turnover of €8.2 billion — will deploy a fleet of 100 cargo barges and pusher tugs in phases across National Waterways 1, 2, and 16, as well as the Indo-Bangladesh Protocol (IBP) route. The deployment will begin in the third quarter of 2025 with 20 barges and six pusher tugs.
The vessels will be tailored for low-draft navigation, enabling the efficient transport of both bulk and break-bulk cargo in North, East, and North-East India, with future expansion into neighbouring countries. The partnership marks a major stride toward the development of a resilient, multimodal logistics ecosystem in the country.
Terming the MoU as a “bold step,” Minister Sonowal said the collaboration reflects the growing private sector confidence in India’s IWT sector. “This agreement will unlock new investment and innovation opportunities, ensure better utilisation of our waterways infrastructure, reduce logistics costs, and enhance the competitiveness of the sector,” he said.
The move is also seen as a major success of the Jal Marg Vikas Project, supported by the World Bank, which aims to upgrade National Waterway-1 (Ganga River). The IWAI is actively building terminals, navigational locks, community jetties, and maintaining dredging operations to facilitate seamless cargo and passenger traffic.
India’s inland waterways sector is witnessing rapid development under the leadership of Prime Minister Shri Narendra Modi and the strategic guidance of Minister Sonowal. The number of operational waterways has increased from 24 to 29, cargo traffic has hit a record 145.84 million tonnes, and river cruise services are active on 13 national waterways.
To incentivize the use of inland waterways, the government launched the ‘Jalvahak’ Cargo Promotion Scheme in December 2024, offering financial support of up to 35% of actual operating expenditure to cargo movers. Fixed scheduled cargo services have also been introduced on NW-1, NW-2, and NW-16 via the IBP route.
This collaboration between IWAI and Rhenus Logistics India is expected to not only enhance cargo movement but also stimulate economic activity, reduce road congestion, and contribute to a greener logistics ecosystem.
