Advancing Inland Waterways: Amazon and IWAI Sign MoU

November 23, 2023

In a significant move toward optimizing logistics and promoting economic development, the Inland Waterways Authority of India (IWAI) and Amazon Seller Services Private Limited (Amazon) signed a Memorandum of Understanding (MoU). The collaboration focuses on enhancing cargo movement and transporting customer shipments and products through inland waterways, specifically utilizing the river Ganga (National Waterway 1).

Key Players in the MoU Signing Ceremony

The MoU signing ceremony took place in the presence of Shri Sarbananda Sonowal, Union Minister of Ports, Shipping & Waterways (MoPSW) and Ayush, along with other dignitaries including Shri T. K. Ramachandran, Secretary of MoPSW, and Shri Sanjay Bandopadhyaya, Chairman of IWAI.

Efficiency and Sustainability: A Stride in E-commerce Transportation

This collaboration signifies a crucial step in advancing the transportation of e-commerce cargo along India’s inland waterways. The partnership aims to harness the efficiency and sustainability of water transport to optimize logistics, reduce environmental footprints, and foster economic development. Notably, a World Bank Report highlights that water transport consumes significantly less fuel compared to rail and road transport, making it an environmentally friendly mode of transportation.

Realizing Prime Minister’s Vision 2047

The collaboration between Amazon India and IWAI aligns with Prime Minister’s Maritime Amrit Kaal Vision 2047, focusing on enhancing inland waterways as an affordable and sustainable mode of transportation. The goal is to facilitate cargo movement and transportation of customer shipments and products through Inland Water Transport using National Waterway-1.

Sagarmala’s Contribution to Water Transport

To accelerate water transport in the country, Sagarmala has initiated 113 projects worth Rs. 7,030 Crores related to RoRo/RoPax and Inland Water Transport. These projects aim to enhance connectivity and make water transport a more viable option.

Transformative Impact on E-commerce Logistics

The partnership allows Amazon to leverage all modes of transport in the country, including rail, air, water, and surface. This comprehensive approach ensures faster, cost-effective, and more reliable delivery of customer packages, extending the reach to millions of sellers. The collaboration not only benefits Amazon by lowering transportation costs but also opens new possibilities for e-commerce companies to tap into India’s extensive inland waterways.

Ambitious Targets for Inland Water Transport

Looking ahead, the Ministry aims to increase inland water transport volumes significantly by 2030 and surpass 500 MMT by 2047, as per the Amrit Kaal Vision 2047. The plan includes increasing the number of operational waterways to 23 by 2030, with a vision to surpass 50 operational waterways by 2047.

Future Prospects: A Regular Mode of Transportation

The collaboration between IWAI and Amazon is expected to set a precedent, making shipments through Inland Waterways Transport (IWT) a regular mode of transportation. The partnership is poised to explore and implement innovative solutions to meet the evolving needs of the e-commerce industry, contributing to a greener and more resilient logistics ecosystem.

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