Rhenus Logistics to Deploy 100 Vessels on India’s Waterways Under New MoU with IWAI

As part of the agreement, Rhenus will deploy 100 modern cargo vessels supported by pusher tugs, specifically designed for low-draft navigation, in a phased manner.

In a significant stride toward enhancing India’s inland water transport (IWT) network, the Inland Waterways Authority of India (IWAI) under the Ministry of Ports, Shipping and Waterways (MoPSW) has signed a Memorandum of Understanding (MoU) with Rhenus Logistics India Private Limited, a subsidiary of Germany-based global logistics giant Rhenus Group. The agreement, formalized today in New Delhi, marks a new phase in bolstering the country’s waterway logistics ecosystem and encouraging greater private sector involvement in IWT infrastructure.

A Landmark MoU for Multi-Modal Growth

The MoU was signed in the presence of Union Minister of Ports, Shipping and Waterways, Shri Sarbananda Sonowal. The event was also attended by Shri T.K. Ramachandran, Secretary, MoPSW; Shri Vijay Kumar, Chairman of IWAI; senior ministry officials; and representatives from Rhenus Logistics India.

This partnership enables Rhenus Logistics India to initiate barge operations across key national waterways including NW-1 (Ganga-Bhagirathi-Hooghly river system), NW-2 (Brahmaputra), NW-16 (Barak River), and the Indo-Bangladesh Protocol (IBP) routes. The project is being hailed as a crucial move to build a resilient, efficient, and low-cost logistics chain, linking the eastern, northeastern, and northern regions of India and even facilitating regional cross-border trade.

Phased Rollout of Modern Barge Fleet

As part of the agreement, Rhenus will deploy 100 modern cargo vessels supported by pusher tugs, specifically designed for low-draft navigation, in a phased manner. The first phase, scheduled to commence in Q3 of 2025, will see the induction of 20 barges and six pusher tugs. These vessels will be used to transport a mix of bulk and break-bulk cargo, catering to industries ranging from steel and coal to agriculture and construction materials.

The choice of pushers and barges is aimed at ensuring fuel efficiency, flexibility in cargo handling, and navigation adaptability, especially in shallow draft conditions prevalent in Indian rivers. Over time, the fleet operations will expand to cover other national waterways beyond NW-1, NW-2, and NW-16, thereby creating a nationwide waterborne cargo grid.

Support from Jal Marg Vikas Project and World Bank

This public-private collaboration is aligned with the objectives of the Jal Marg Vikas Project (JMVP), a flagship initiative of IWAI being implemented with financial support from the World Bank. The JMVP is focused on capacity augmentation of National Waterway-1, with components such as dredging, construction of multimodal terminals, navigational locks, and installation of state-of-the-art navigational aids.

Through such initiatives, IWAI aims to promote sustainable and economically viable modes of transport. The tie-up with Rhenus will also enhance connectivity between India’s hinterlands and neighbouring countries via the Indo-Bangladesh Protocol route.

Government Vision: Transforming Waterways into Economic Corridors

Addressing the gathering, Shri Sonowal described the MoU as a “bold step toward building a robust and resilient multimodal logistics ecosystem.” He noted that increased private sector participation will not only bring capital investment but also foster innovation, technology transfer, and employment generation.

Under the leadership of Prime Minister Shri Narendra Modi, the government has scaled up infrastructural investments in the IWT sector. Operational waterways in the country have increased from 24 to 29 in recent years. River cruise services are currently functional on 13 waterways, and cargo traffic has reached a historic high of 145.84 million tonnes.

New Incentives and Scheduled Services

To attract more stakeholders, the government has introduced the ‘Jalvahak’ Cargo Promotion Scheme in December last year. This scheme offers up to 35% reimbursement on the actual operating expenditure for cargo transported via inland waterways. It also includes the launch of fixed-schedule services on NW-1, NW-2, and NW-16, ensuring reliability and predictability for cargo movement.

This MoU is expected to significantly leverage these schemes, bringing down logistics costs and positioning inland waterways as a preferred mode of transport for large-scale cargo movement in India.

Rhenus Group: A Global Logistics Powerhouse

Rhenus Logistics, with an annual turnover of EUR 8.2 billion, operates in more than 70 countries. Its decision to partner with IWAI demonstrates strong confidence in India’s IWT potential and the broader reforms initiated under MoPSW. With this partnership, Rhenus will not only extend its global maritime and inland transport expertise to Indian waters but also contribute to the green transport vision by reducing road congestion and lowering emissions.

Looking Ahead

As India gears up for a more sustainable and integrated logistics future, the IWAI-Rhenus MoU stands as a model for future collaborations. The deployment of cargo vessels on national waterways is set to revolutionize how goods move across India, bringing economic growth, regional integration, and environmental sustainability into the same frame.