(MENAFN- NewsBytes)
PM Modi inaugurates India's first inland waterway: Details here
12 Nov 2018
On Monday, a vessel carrying PEPSICO (India) cargo docked at the holy city of Varanasi, marking India's first inland voyage by a container ship since it gained Independence.
The vessel docked in the presence of Prime Minister Narendra Modi, who is in Varanasi to inaugurate key infrastructure projects including two roadways, and India's first inland waterway.
Here's all about the waterway.
A brief introduction to National Waterway-1
NW-1
Dubbed the National Waterway-1, the inland waterway stretches 1,390km, all the way from Haldia in West Bengal to Prayagraj in Uttar Pradesh.
It is the first of the 111 inland waterways that India is planning to revive or build, and the development of the National Waterway-1 was assisted by the World Bank in a 50:50 cost sharing agreement.
The project costs $738mn.
PM Modi also inaugurated India's first multi-modal terminal on Ganga
Terminal
The inauguration of NW-1 also saw PM Modi inaugurate the first multi-modal terminal on the Ganga at Varanasi.
The terminal was built as part of the Centre's Jal Marg Vikas project, and according to the government, will generate direct employment for 500 people, and indirect employment for 2,000 people.
Two more multi-modal terminals - at Shahibganj and Haldia - are slated to be built.
The terminal will be operated through a public-private partnership
Operation
The operation, management, and further development of the multi-modal terminal at Varanasi will be carried out by an operator in the public-private partnership (PPP) model.
Reportedly, the selection process for the operator is already at an advanced stage and is expected to be completed by December end.
The process is being carried out at an international level through competitive bidding.
India's inland waterways are extremely under-utilized
Freight
The inauguration of NW-1 marks the first step to transforming freight transport in India.
As it stands, more than 50% of freight in India is transported via road, while around 36% is transported via rail.
Inland water transport accounts for only 0.4% of freight transport, while coastal shipping accounts for 6%.
As is evident, India's massive network of inland waterways is extremely under-utilized.
How water transport could change freight transport in India
Game changer
India's plans to develop 111 waterways, stretching a whopping 20,726km, could reduce the cost of freight transport by as much as 50% compared to road transport.
Apart from being cheap, water-based transport would also be more environment-friendly, and would reduce congestion on India's roads.
Coupled with the Centre's plan to integrate coastal and inland waterways, for which a $34bn plan has been unveiled, water transport could become a game changer for India.
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