India Expands Green Cargo Network to Boost Inland Waterway Freight Movement

India’s push for sustainable transport infrastructure has gained fresh momentum with a major global logistics firm set to enter the country’s inland water transport sector.

The Inland Waterways Authority of India has signed a landmark agreement to introduce a fleet of 100 low emission cargo vessels across key river routes, marking a transformative shift in how goods will be moved within the country and beyond. This strategic partnership comes at a time when India is striving to reduce its logistics related carbon footprint and boost environmentally friendly transport modes. The collaboration will see modern barge cargo services initiated on National Waterways 1, 2 and 16 as well as the Indo Bangladesh Protocol routes, waterways critical to connecting the industrial heartlands of North and East India to the country’s ports and to neighbouring countries.

Beginning in the third quarter of 2025, the first phase will roll out 20 advanced flat bottom barges and six pusher tugs. These specially designed vessels, brought from Europe, are suited for India’s low draft river conditions. Each unit can carry up to 400 tonnes and may be coupled to move nearly 1200 tonnes per trip, providing a cost effective, low emission alternative to road and rail freight. India possesses a vast network of over 14500 kilometres of navigable waterways but until recently the sector has remained underutilised. The Inland Waterways Authority of India, a central authority under the Ministry of Ports Shipping and Waterways, has reported that cargo traffic on inland waterways has surged more than fourfold in the last decade, rising from 30 million metric tonnes per annum in 2014 to 133 million metric tonnes per annum in 2024.

The new partnership underscores the success of the Jal Marg Vikas Project, a World Bank assisted initiative aimed at enhancing the navigability and capacity of the Ganga, also known as National Waterway 1. Investments under this project include terminal development, dredging operations, community jetties, navigational aids and the creation of multimodal logistics hubs, all of which are vital for building a resilient and climate conscious freight ecosystem. By enabling the movement of bulk and break bulk cargo such as construction material, agricultural produce and manufactured goods, the initiative is expected to reduce road congestion, cut fuel usage and lower emissions significantly. Moreover, shifting freight from roadways to waterways could lower logistics costs by up to 30 percent, which in turn can translate to more competitive pricing across sectors. Beyond the environmental and economic gains, the move also opens opportunities for equitable development in the Northeastern states, many of which are now being better connected through waterways. Improved connectivity could stimulate local economies, support rural supply chains and empower communities living along riverbanks.

While inland water transport alone may not solve India’s logistics challenges, the latest deal signals a welcome shift towards more integrated and sustainable mobility systems. If executed with transparency and long term planning, it can set a benchmark for clean freight movement across South Asia. As India positions itself to become a global manufacturing and trade hub, reimagining its rivers not just as lifelines but as green freight corridors could reshape its urban and rural landscapes alike for a cleaner and more inclusive future.

India Expands Green Cargo Network to Boost Inland Waterway Freight Movement