Inland Waterways

Decoding the Economics of Ganga Waterway (National Waterways-1)

Guest Blog by Debadityo Sinha

The Government of India has undertaken the ambitious project of plying cargo ships from Haldia to Prayagraj on the river Ganga, also known as National Waterways-1 (NW-1).

The justification for promoting waterways on such a massive scale as stated in National Waterways Bill, 2015 when introduced is as follows:

  • …inland water transport is recognised as fuel efficient, cost effective and environment friendly mode of transport, especially for bulk goods, hazardous goods and over dimensional cargos. It also reduces time, cost of transportation of goods and cargos, as well as congestion and accidents on highways.

As per the Government of India’s Press Release dated 21 July 2016, the cost of transportation of goods by rail was estimated at about Rs. 1.36 per ton kilometre, by waterways at Rs. 1.06 per ton kilometres and by road at Rs. 2.50 per ton kilometre. At first glance, the waterway appears to be far more economical.

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