In May 2025, the Inland Waterways Authority of India (IWAI), under the Ministry of Ports, Shipping, and Waterways, partnered with Rhenus Logistics India through a Memorandum of Understanding (MoU). This strategic agreement aims to stimulate cargo growth on national waterways by deploying maritime services.
Key aspects are:
1. **Partnership**: IWAI teamed up with Germany-based global logistics provider Rhenus for barge operations across national waterways in India.
2. **Services Deployment**: Rhenus Logistics plans to deploy 100 cargo vessels including pusher tugs in phases spanning NW1, NW2, NW16 and the Indo-Bangladesh Protocol (IBP) routes.
3. **Phase Implementation**: Starting mid-2025 with approximately 20 barges and six pusher tugs for initial deployment on selected waterways, operations are expected to expand gradually.
4. **Technology and Cargo Types**: Deployments employ combinations of pushers and barges suitable for low-draft conditions to transport bulk and breakbulk cargo across North and East India, Northeastern states, and potentially neighboring countries.
5. **Economic Impact**: This cooperation is seen as a catalyst for creating a resilient multimodal logistics framework in India, fostering private sector participation in the inland water transport (IWT) sector, promoting innovation, capital investments, and competitive market responsiveness through effective infrastructure utilization and expansion on waterways.
6. **National Waterway Project Influence**: The partnership is part of ongoing developments, including successful initiatives like the Jal Marg Vikas Project receiving World Bank support for enhancing National Waterway 1 through the River Ganga, covering capacity augmentation, maintenance dredging, construction of IWT terminals, navigational aids deployment, and community jetties.
7. **Expansion Plans**: IWAI has significantly increased operational waterways in India from 24 to 29, with river cruises launched on 13 national waterways, and cargo traffic reaching an all-time high at 145.84 million tonnes.
8. **Incentives**: The introduction of the Jalvahak Cargo Promotion Scheme is expected to further stimulate growth by incentivizing up to 35% of actual operating expenses for waterway journeys.
Overall, this strategic MoU marks a significant development towards leveraging India's inland waterways as a robust engine of growth in logistics and transportation sectors.
Key Entities Referenced
Ministry of Ports, Shipping and Waterways: A governmental ministry overseeing ports, shipping, and waterways in India.
IWAI: Inland Waterways Authority of India, an authority under the Ministry of Ports, Shipping and Waterways.
Rhenus Logistics India: A subsidiary of Rhenus Logistics, an international logistics service provider.
MoU: Memorandum of Understanding, an agreement between IWAI and Rhenus Logistics India.
Rhenus Logistics: A Germany-based international logistics service provider.
Germany: The country where Rhenus Logistics is based.
EUR 8.2 billion: Annual turnover of Rhenus Logistics.
Minister of Ports, Shipping and Waterways: The title of the minister, followed by a name, Shri Sarbananda Sonowal, in the context of the agreement signing.
Shri Sarbananda Sonowal: Minister of Ports, Shipping and Waterways.
New Delhi: Location of the agreement signing.
Shri T.K. Ramachandran: Secretary, MoPSW.
Shri Vijay Kumar: Chairman, IWAI.
NW1: National Waterway 1 in India.
NW2: National Waterway 2 in India.
NW16: National Waterway 16 in India.
IndoBangladesh Protocol IBP: A protocol related to waterways between India and Bangladesh.
North India: Region in India.
East India: Region in India.
NorthEast India: Region in India.
Union Minister Shri Sonowal: Reference to Shri Sarbananda Sonowal, in his capacity as a Union Minister.
IWT: Inland Water Transport sector.
Jal Marg Vikas Project: A project for the capacity augmentation of National Waterway 1 River Ganga.
World Bank: An international financial institution providing financial assistance for the Jal Marg Vikas Project.
River Ganga: A river in India, also known as National Waterway 1.
Honble Prime Minister Shri Narendra Modi: Prime Minister of India.
Jalvahak Cargo Promotion Scheme: A scheme incentivizing cargo owners and movers for using waterways.
December: Month when Jalvahak Cargo Promotion Scheme was Launched.
GDHHR: An organisation releasing the news.
Ministry of Ports, Shipping and Waterways
IWAI signs MoU with global giant Rhenus Logistics
India to push cargo growth on national waterways
Posted On: 06 MAY 2025 8:05PM by PIB Delhi
In a major development, Inland Waterways Authority of India (IWAI) under the Ministry of Ports, Shipping
and Waterways (MoPSW) signed a Memorandum of Understanding (MoU) with Rhenus Logistics India
Private Limited, today, to operate their barge services in various national waterways in India. Rhenus
Logistics is a Germany-based international logistics service provider operating globally in more than 70
countries with an annual turnover of EUR 8.2 billion.
The agreement was signed in the presence of Minister of Ports, Shipping and Waterways Shri Sarbananda
Sonowal in New Delhi. Shri T.K. Ramachandran, Secretary, MoPSW; Shri Vijay Kumar, Chairman, IWAI,
along with other senior officials of the Authority and representatives of Rhenus Logistics India were present
at the occasion.
Under the MoU, Rhenus Logistics will deploy 100 cargo vessels along with pusher tugs in a phased manner
along NW-1, NW-2, NW-16 and the Indo-Bangladesh Protocol (IBP) routes. During the first phase -- starting
from the third quarter of 2025, about 20 barges and six pusher tugs are expected to be deployed in these
waterways. A combination of pushers and barges, to suit low-draft navigation in waterways, will be used to
transport both bulk and break-bulk cargo across North and East India, North-East India, and subsequently to
neighbouring countries. The operations will gradually be scaled up to include other national waterways in the
country.
Union Minister Shri Sonowal called the MoU between IWAI and Rhenus Logistics India a bold step towards
building a resilient multi-modal logistics ecosystem in the country. He termed it a significant moment for
private participation in the IWT sector and expressed hope that it will open new opportunities of innovation
and capital investments in the sector. This move will ensure effective utilisation and expansion of waterwaysinfrastructure thereby lowering the operational costs, making IWT sector more competitive and responsive to
market demands.
The partnership between IWAI and Rhenus Logistics India is a testament to the success of Jal Marg Vikas
Project being implemented with the financial assistance of the World Bank - for the capacity augmentation of
National Waterway -1 (River Ganga). Under this project, IWAI is undertaking end-to-end maintenance
dredging, building IWT terminals and navigational locks, setting up community jetties and providing
navigational aids all along the waterway for smooth and efficient passenger and cargo movement.
With the visionary leadership of Hon’ble Prime Minister Shri Narendra Modi and the able guidance of
Hon’ble Minister, MoPSW, Shri Sarbananda Sonowal, IWAI has made several infrastructural interventions to
develop waterways as a robust engine of growth. The total number of operational waterways in the country
has gone up from 24 to 29. As on date, river cruises are being operated on 13 national waterways. Cargo
traffic on national waterways has touched an all-time high of 145.84 million tonnes. The newly-
introduced ‘Jalvahak’ Cargo Promotion Scheme is expected to further push this growth. Launched in
December last year, it incentivises cargo owners and movers to the extent of up to 35% of the total actual
operating expenditure incurred on waterways journey thus making it more lucrative than before. A fixed
scheduled service for cargo movement has also been initiated on NW-1, NW-2 and NW-16 via IBP route
under the scheme.
***
GDH/HR
(Release ID: 2127332)