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Inland Water Transport to Reduce Overall Logistics Cost

Capital Market 

Inland Water Transport (IWT) mode is widely recognized as an environment friendly and cost effective mode of transport. As per RITES Report of 2014 on "Integrated National Waterways Transportation Grid (INWTG)", one litre of fuel moves 24 tonne - km on road, 95 tonne-km on rail and 215 tonne-km on IWT. The comparative inter modal costs are given below:-


Pre tax freight

(Rs. per tonne Km)

Post Service tax freight

(Rs. per tonne km)


1.36 1.41


2.50 2.58


1.06 1.06

The significant cost saving shows that the promotion of Inland Water Transport (IWT) is expected to have a positive impact on reduction in overall logistics cost. However, as compared to roads and railways, development of transportation on national waterways is still in infancy stage.

The Three National Waterways (NWs) viz. Ganga-Bhagirathi-Hooghly river system (NW-1), River Brahmaputra (NW-2) and West Coast Canal (NW-3) have been developed with targeted depth, fixed and floating terminals with mechanized facilities for cargo loading, unloading and Navigational Aids. Vessels are plying on these waterways.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 21 2017. 11:20 IST