Haldia Multi-Modal Terminal Handed Over Under PPP, Boosting Inland Logistics

To ensure long-term operational efficiency and optimal asset utilisation, IWAI adopted a PPP model on an Equip, Operate, and Transfer (EOT) basis.

In a significant stride towards enhancing India’s multimodal logistics infrastructure and promoting sustainable freight movement, the Inland Waterways Authority of India (IWAI) has successfully handed over the Haldia Multi-Modal Terminal (MMT) in West Bengal to IRC Natural Resources, a private sector entity, under a Public-Private Partnership (PPP) model. This strategic development marks a milestone in the Government of India’s mission to leverage Inland Water Transport (IWT) as an efficient, eco-friendly, and integrated component of the national logistics ecosystem.

Strategic Infrastructure for Multimodal Connectivity

The Haldia MMT, developed by IWAI under the Ministry of Ports, Shipping and Waterways, is one of the flagship terminals constructed with technical and financial assistance from the World Bank under the Jal Marg Vikas Project (JMVP). With a handling capacity of 3.08 million metric tonnes per annum (MMTPA), the terminal is poised to become a pivotal logistics node in Eastern India.

Inaugurated by Prime Minister Shri Narendra Modi on January 13, 2023, the terminal is strategically located with direct access to National Highway 41, and future plans include rail connectivity, which will cement its role as a vital multimodal hub facilitating seamless cargo transfers across different transport networks.

PPP on Equip, Operate and Transfer (EOT) Basis

To ensure long-term operational efficiency and optimal asset utilisation, IWAI adopted a PPP model on an Equip, Operate, and Transfer (EOT) basis. Following an open and transparent bidding process, IRC Natural Resources emerged as the highest bidder, committing to pay a royalty of ₹105.03 per metric tonne of cargo handled—an encouraging sign of private sector confidence in the inland waterway logistics sector.

Under the concession agreement:

• IRC Natural Resources will be responsible for operation and maintenance (O&M) of the terminal for an initial period of 10 years.

• The term is extendable by another 5 years, subject to performance and mutual agreement.

• IWAI retains ownership while ensuring efficient, market-driven terminal operations through private participation.

This structure ensures a balance between public ownership and private efficiency, delivering better outcomes for cargo stakeholders, shipping companies, and regional economies.

Boost to Regional Trade and Environment-Friendly Freight

The operationalisation of the Haldia MMT is expected to significantly enhance cargo throughput via National Waterway-1 (NW-1), which spans 1,390 kilometers along the Ganga–Bhagirathi–Hooghly river system, cutting through Uttar Pradesh, Bihar, Jharkhand, and West Bengal.

The terminal will serve as a gateway for:

• Cargo movement to North Eastern states

• Cross-border trade with Bangladesh

• Efficient inland distribution of bulk commodities, food grains, fertilizers, and containerised cargo

Compared to road and rail, inland waterway transport is more cost-effective and energy-efficient, contributing to lower carbon emissions and reduced logistics costs. This aligns with India’s broader climate and sustainability goals under green transportation mandates.

Jal Marg Vikas Project (JMVP): Transforming India’s Waterways

The Jal Marg Vikas Project, under which the Haldia terminal was developed, is a flagship initiative of IWAI aimed at transforming India’s river navigation landscape. Supported by the World Bank, JMVP is focused on capacity augmentation of NW-1, including:

• Fairway development and dredging

• Construction of multi-modal terminals (Haldia, Sahibganj, and Varanasi)

• Installation of modern navigational locks (notably at Farakka)

• Deployment of digital river information systems

• Establishment of over 60 floating and permanent jetties

These infrastructure investments will reduce logistics bottlenecks, encourage modal shift, and boost the competitiveness of Indian industry, especially in sectors dependent on bulk and heavy cargo.

Inclusive Growth and Riverine Community Benefits

Beyond cargo handling, the Haldia MMT and similar inland terminals are designed to empower riverine communities by:

• Creating employment opportunities

• Promoting river tourism and allied services

• Encouraging MSME participation in supply chains

• Improving connectivity for remote and underserved regions

This reflects the government’s vision of inclusive development that links infrastructure with livelihoods and sustainability.

A Model for Future Public-Private Partnerships

The handover of the Haldia MMT to IRC Natural Resources underlines the successful convergence of public investment and private sector efficiency, setting a precedent for future projects across India’s burgeoning inland waterway sector.

As the country moves toward a more integrated, green, and multimodal logistics framework, the operationalisation of modern terminals like Haldia is a testament to India’s infrastructural evolution and policy innovation, unlocking new trade corridors and bringing inland water transport into the national mainstream.