Amazon India to use India's rivers, backwaters for transporting packages

Signs agreement with govt, to be first e-commerce player to use inland waterways

Amazon India and state-run Inland Waterways Authority of India (IWAI) have signed an agreement that allows the e-commerce firm to use inland waterways for transporting customer packages.

The company, which will become the first e-commerce player in India to use inland water transport, said it was committed to strengthening its transportation infrastructure in the country. It will work together with IWAI to build a network of inland waterways for cargo shipment. And, using the support of IWAI and its carriers, it will do a pilot run on Patna-Kolkata waterways.

Sarbananda Sonowal, minister for ports, shipping and waterways, which runs IWAI, said: “Our focus is on increasing cargo movement through river systems, which is a more sustainable and economical mode of transport… This initiative is a reflection of the importance of sustainable logistics solutions in India’s rapidly expanding e-commerce sector.”

Inland waterways transport would ensure quicker, sustainable and more reliable delivery of customer packages and widen the reach of sellers, said Amazon India. “This will open up new possibilities for all e-commerce companies,” said Abhinav Singh, vice-president, operations, Amazon India. “We seek to harness the potential of the country's rivers, canals, and other water bodies to enhance logistics and transportation efficiency for the Indian e-commerce industry at large.”

Amazon India called this initiative a reinforcement of its commitment to building capacity to meet the increasing customer demand. “The aim is to also collaborate with government authorities to explore mutually beneficial projects for the e-commerce industry,” it said.

India's e-commerce sector is poised to see a five-fold growth — from $59 billion in 2022 to an estimated $300 billion by 2030 — fuelled by value-seeking mass consumers, according to a report by Redseer Strategy Consultants.

The report emphasises the burgeoning adoption of e-commerce in Tier-II cities and beyond. This, combined with a growing base of mass consumers and the expansion of 3PL (third-party logistics) serviceability, is catalysing shipment volumes. The volumes are projected to rise more sharply than growth in gross merchandise volumes (GMV).

Amazon recently expanded its flagship cross-border logistics programme, SEND, by enabling a hassle-free ocean freight logistics solution. At competitive rates and with end-to-end trackability, this allows exporters to better plan their inventory. Launched last year, SEND has been providing air carrier services for small parcel delivery, and offering Indian exporters cross-border logistics services from multiple third-party service providers across the air and ocean.