In a major step toward strengthening India’s inland water transport network, the Inland Waterways Authority of India (IWAI) has signed a Memorandum of Understanding (MoU) with Rhenus Logistics India Pvt Ltd, a subsidiary of the Germany-based global logistics firm operating in over 70 countries with annual revenue of EUR 8.2 billion.

The agreement, signed in New Delhi in the presence of Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal, will enable Rhenus Logistics to launch scheduled barge services across key National Waterways (NWs), including NW-1 (Ganga), NW-2 (Brahmaputra), NW-16 (Barak) and the Indo-Bangladesh Protocol (IBP) route.

In the first phase, beginning Q3 of 2025, 20 barges and 6 pushers will be deployed to transport both bulk and break-bulk cargo across northern, eastern, and northeastern India. Over time, the fleet will scale to 100 cargo vessels, further extending operations to additional waterways and neighbouring countries.

Minister Sonowal called the partnership a milestone in enabling private sector participation in India’s inland waterways sector. He said it would lower logistics costs, attract investments, and improve modal efficiency. The move complements the Jal Marg Vikas Project, supported by the World Bank, which has boosted infrastructure on NW-1 through dredging, terminal upgrades, navigational aids, and more.

India currently has 29 operational National Waterways, up from 24 in recent years. River cruises now run on 13 waterways, and cargo volumes have reached 145.84 million tonnes, the highest ever. The newly launched ‘Jalvahak’ Cargo Promotion Scheme, which reimburses up to 35 per cent of operating costs, is expected to further incentivise waterborne transport. Fixed schedule services have already begun on NW-1, NW-2, and NW-16 via the IBP route.

Senior officials including MoPSW Secretary T.K. Ramachandran, IWAI Chairman Vijay Kumar, and Rhenus Logistics India CEO Vivek Arya were present at the signing ceremony, underlining the importance of public-private collaboration in modernising India’s logistics network.