Cargo Traffic on Waterways Hits Record High

• 16 Apr 2025
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The Inland Waterways Authority of India (IWAI), under the Ministry of Ports, Shipping and Waterways, has achieved a major milestone. IWAI has successfully reached a record-breaking 145.5 million tonnes of cargo movement for the fiscal year 2024-25. In the IWT industry, this is a record high. In addition, there are now 29 functioning waterways overall, up from 24 in the previous year.

Cargo Traffic has grown exponentially in a decade

The National Waterways' cargo traffic grew at a CAGR of 20.86%, from 18.10 MMT to 145.5 MMT between FY-14 and FY-25. Traffic movement increased 9.34% year over year in FY-25 compared to FY-24. Over 68% of the total cargo transported on NWs throughout the year was made up of five commodities: coal, iron ore, iron ore fines, sand, and fly ash.

It is significant that cargo movement on national waterways has increased. To facilitate freight transit on NWs, the govt implemented a number of proactive governmental measures and infrastructure efforts in recent years.

The Jalvahak Scheme: Cargo Promotion Initiative

The Jalvahak initiative encourages cargo owners and movers to switch from other forms of transportation to IWT by offering incentives equal to 35% of the total actual operating costs paid on waterways journeys. The government introduced this scheme in December last year.

The Indo-Bangladesh Protocol made scheduled cargo services available on NW-1, NW-2, and NW-16 to help forward the plan. There is an anticipation that 800 million tonne-kilometers of cargo, which is nearly 17% of the 4,700 million tonne-kilometers of cargo currently transported on National Waterways, will divert to the IWT mode under this plan.

Digital Portal for securing NOCs for IWT structures

In order to maximize the utilization of India's vast canal network, the National Waterways (Construction of Jetties/Terminals) Regulations, 2025, promote private sector involvement in the construction of inland terminals on National Waterways. Through a digital portal, IWAI provides a simplified no-objection certificate (NOC) that allows private, public, and joint venture enterprises to build jetties and terminals around the nation.

Other Initiatives to Increase Cargo Movement

Other initiatives to increase cargo movement include the following:

• Fairway Development Works: The construction of fairways is done to guarantee the least amount of depth and easy navigation. Numerous designated sections of national waterways have end-to-end dredging contracts.

• Ro-Ro/Ro-Pax Services: Another initiative is the Roll-on/Roll-off (Ro-Ro) and Ro-Pax services on a number of national waterways.

• Digital Solutions: The use of digital solutions such as the CAR-D and PANI portals to facilitate business transactions, the Naudarshika (National River Traffic and Navigational System) to ensure the safety and efficient operation of inland vessels, and the central database for vessel and crew registration (Jalyaan and Navic) to encourage digitization.

• Sufficient Infrastructure: Along NWs, the govt is building sufficient canal infrastructure, such as IWT terminals, night navigation facilities, and navigational locks.

By encouraging a more effective and environmentally friendly form of transportation, the government expects these initiatives to accelerate the expansion of cargo flow via National Waterways. IWAI shows commitment to establishing waterways as a strong growth engine under the direction of Minister of Ports, Shipping, and Waterways Shri Sarbananda Sonowal and the energetic leadership of Prime Minister Shri Narendra Modi. 

In order to increase the capacity of several waterways, including NW-1, NW-2, NW-3, and NW-16, the Authority is extending its reach across the nation. The increase in freight traffic on national waterways is a definite sign that IWAI's efforts are having a beneficial impact and will eventually contribute to IWT becoming a favored and dependable mode of transportation.

Source: PIB