Cargo traffic on National Waterways hits record high of 145.5 million tonnes in FY 2024-25

By: Team India Tracker

This milestone underscores the growing significance of inland waterways as a viable and sustainable mode of cargo transport.

In a landmark achievement for India's inland water transport sector, the Inland Waterways Authority of India (IWAI), operating under the Ministry of Ports, Shipping and Waterways, has recorded an unprecedented 145.5 million tonnes (MT) of cargo movement on National Waterways (NWs) in fiscal year 2024–25, the highest ever in the history of the sector.

This milestone underscores the growing significance of inland waterways as a viable and sustainable mode of cargo transport. The number of operational waterways also rose during the year, increasing from 24 to 29, further expanding the country’s navigable infrastructure. 

The latest figures represent a staggering leap from FY 2013–14, when cargo movement stood at just 18.10 MT. Over the past decade, cargo traffic on NWs has grown at a compound annual growth rate (CAGR) of 20.86 percent. Compared to FY 2023–24, this year witnessed a 9.34 percent year-on-year growth in traffic. Key drivers of this surge included bulk commodities such as coal, iron ore, iron ore fines, sand, and fly ash, which collectively accounted for more than 68 percent of the total cargo transported on inland waterways.

Source: Ministry of Ports, Shipping and Waterways

Boosting this momentum is the Jalvahak scheme, introduced in December 2024. The initiative incentivizes cargo owners and operators to shift from traditional transport modes to Inland Water Transport (IWT), offering a subsidy of up to 35 percent of the actual operational expenditure incurred on waterway-based logistics. Scheduled cargo services have since been rolled out on NW-1, NW-2, and NW-16 via the Indo-Bangladesh Protocol route, with the scheme projected to divert up to 800 million tonne-kilometers of cargo to IWT, nearly 17 percent of the current cargo volume handled by National Waterways.

Source: Ministry of Ports, Shipping and Waterways

In a bid to further enhance infrastructure, the recently notified National Waterways (Construction of Jetties/Terminals) Regulations, 2025 aim to attract private investment by streamlining the development process for inland terminals. The new framework allows public, private, and joint venture entities to construct jetties and terminals across the NW network by securing a simplified no-objection certificate (NOC) through a digital portal managed by IWAI.

With these developments, the inland waterways sector is poised to play a transformative role in India's multimodal logistics ecosystem, offering a greener, more cost-effective alternative for cargo transport.

In a strategic move to cut logistics costs and promote sustainable cargo transport, the Inland Waterways Authority of India (IWAI) is intensifying efforts to shift freight movement from traditional road and rail networks to the more cost-effective Inland Water Transport (IWT) mode.

Touted as significantly cheaper than road and rail, the IWT mode offers a promising alternative for bulk cargo movement. To accelerate this modal shift, the government has approved a targeted incentive scheme aimed at boosting inland waterway usage by cargo owners. The scheme provides a 35 percent financial incentive on the actual operational cost of transporting goods via inland waterways.

As part of the initiative, scheduled cargo services are being launched on National Waterways 1, 2, and 16 through the Indo-Bangladesh Protocol route. The scheme, expected to divert up to 800 million tonne-kilometers of cargo to waterways, around 17 percent of the current 4,700 million tonne-kilometers of cargo moved on national waterways, is being rolled out at a modest cost of under ₹100 crore over a three-year period. Depending on its effectiveness, the scheme can be expanded or refined.

To build confidence among cargo owners and demonstrate the viability of this mode, the IWAI is also launching a scheduled cargo service between Kolkata and Varanasi/Pandu. Operated by the Shipping Corporation of India using IWAI vessels, the service aims to showcase the reliability and efficiency of IWT, thereby encouraging broader adoption of water-based freight transport.

With these steps, IWAI is steering India’s logistics sector toward a more economical and environmentally friendly future by leveraging the vast potential of its inland waterways.