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Global Shipping & Trade
Asia

Government launches Jalvahak scheme to encourage cargo movement

by Kalpana Pandey
December 31, 2024
in Asia, Inland Waterways, News, Transport & Multimodal
Reading Time: 2 mins read
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The Union government took a significant step in encouraging economical and sustainable transportation across National Waterways 1 (Ganga), 2 (Brahmaputra), and 16 (Barak river) by launching the ‘Jalvahak’ initiative to encourage freight movement over inland waterways. Sarbananda Sonowal, the Union Minister of Ports, Shipping, and Waterways, officially launched the fixed scheduled service of vessels and flagged off three cargo ships.

According to him, the plan is to decongest road and rail networks, lower logistics costs, and unleash the commerce potential of inland waterways. Under the program, freight owners who ship their goods further than 300 kilometers by canal can get up to 35% of their operational expenses reimbursed.

The three-year program is intended to optimize supply chains for large shipping corporations, freight forwarders, and trade associations. The Inland & Coastal Shipping Ltd (ICSL), a division of the Shipping Corporation of India, and the Inland Waterways Authority of India (IWAI) work together to implement the program.

According to a release, the cargo promotion initiative is expected to enable a modal shift of 800 million tonne-kilometers by 2027 with an anticipated investment of Rs 95.4 crore. In order to show that waterways are prepared for effective and environmentally responsible freight transportation, a fixed-schedule sailing service will operate vessels between Kolkata and the Patna-Varanasi and Kolkata-Pandu (Guwahati) routes.

“By using regular freight services, the Jalvahak system guarantees on-time delivery and encourages long-haul cargo shipping. “This initiative advances Prime Minister Narendra Modi’s vision of transformation via transportation while offering a positive economic value proposition to trade,” Sonowal added. In the Indo-Bangladesh Protocol Route, Sonowal flagged off three vessels: MV Trishul, which was bringing 1,500 tonnes of cement to Guwahati; MV Aai, which was carrying 1,000 tonnes of gypsum to Patna for a cement company; and MV Homi Bhaba, which was delivering 200 tonnes of coal to Varanasi.

Sonowal emphasized the expansion of the industry, stating that the amount of cargo on national waterways has grown by more than 700 percent, from 18.07 million tonnes in 2013–14 to 132.89 million tonnes in 2023–24. The government wants to reach 200 million tonnes by 2030 and 500 million tonnes by 2047, he continued.

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Shantanu Thakur, the Union Minister of State for Shipping, assured reporters that the government has been closely monitoring bilateral commerce and that there is no need for fear despite the ongoing instability in Bangladesh. Compared to nations like the US and China, India’s vast inland waterway network—which spans 20,236 km—is still underutilized for freight transportation.

In 2023, UltraTech carried out a first-of-its-kind project in India by using inland and coastal waterways to move 57,000 metric tons of phosphogypsum from Paradeep port in Odisha to UltraTech’s integrated manufacturing unit Gujarat Cement Works in Amreli, Gujarat. According to a company statement, UltraTech wants to build a robust supply chain that supports its operations and reduces risks, guided by its sustainable supply chain framework.

Tags: BrahmaputraCargo movementICSLJalvahak
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