IWAI and Rhenus Logistics Join Hands to Boost Inland Waterways Cargo Movement

In a major step toward enhancing India’s inland water transport (IWT) ecosystem, the Inland Waterways Authority of India (IWAI) signed a Memorandum of Understanding (MoU) with Rhenus Logistics India Pvt. Ltd., a global logistics major. The collaboration will introduce a fleet of cargo vessels and pusher tugs on key national waterways, unlocking the full potential of India’s vast river networks for cargo movement.

Why in News?

The MoU, signed on May 6, 2025, in New Delhi, marks a significant milestone in public-private partnerships for India’s inland waterways sector. It aims to accelerate cargo transport on major waterways like NW-1, NW-2, NW-16, and the Indo-Bangladesh Protocol (IBP) route, in line with India’s Jal Marg Vikas Project and broader goals of promoting multi-modal logistics.

Key Details of the MoU

• Parties Involved: Inland Waterways Authority of India (IWAI) and Rhenus Logistics India Pvt. Ltd.

Signed in presence of,

• Shri Sarbananda Sonowal, Union Minister, MoPSW
• Shri T.K. Ramachandran, Secretary, MoPSW
• Shri Vijay Kumar, Chairman, IWAI
• Objective: To deploy and operate cargo barges and pusher tugs across national waterways.

Operational Plan

Phase 1 (Q3 2025)

• Deployment of 20 barges and 6 pusher tugs
• Focus on NW-1 (Ganga), NW-2 (Brahmaputra), NW-16, and IBP route
• Later Phases: Expansion to other national waterways
• Cargo: Bulk and break-bulk cargo across North, East, and Northeast India and neighbouring countries

Strategic Importance

• Encourages private sector participation in IWT
• Reduces logistics cost and improves environmental sustainability
• Enhances use of Jal Marg Vikas Project infrastructure with World Bank assistance
• Complements Jalvahak Cargo Promotion Scheme, launched in Dec 2024, offering up to 35% incentive on water-based cargo journeys

Background – Jal Marg Vikas Project

• Funded by the World Bank
• Aims to develop National Waterway-1 (NW-1) between Haldia and Varanasi
• Includes dredging, terminal construction, navigational aids, and vessel operation facilities

Current Inland Waterways Status

• Operational Waterways: Increased from 24 to 29
• River Cruises Active On: 13 national waterways
• Cargo Traffic: Reached a record 145.84 million tonnes

Summary/Static	Details
Why in the news?	IWAI and Rhenus Logistics Join Hands to Boost Inland Waterways Cargo Movement
MoU Between	IWAI and Rhenus Logistics India Pvt. Ltd.
Waterways Covered	NW-1, NW-2, NW-16, IBP route
Phase 1	Deployment 20 barges, 6 pusher tugs
Cargo Types	Bulk and break-bulk
Related Schemes	Jal Marg Vikas Project, Jalvahak Scheme
Incentive	Under Jalvahak Up to 35% of operating cost