Reviving Waterways: A Sustainable Transport Solution in the ESG Era
Reviving Waterways: A Sustainable Transport Solution in the ESG Era
Carbon Emission Comparison (per ton-kilometer): 3
Economic and Social Benefits: 3
Governance and Policy Alignment: 4
Current Status of Inland Waterways in India 4
Expansion of National Waterways 4
Urban Water Transport Projects 5
State-Wise Inland Waterways Length (2025) 5
Introduction:
In the era of ESG (Environmental, Social, and Governance) considerations, sustainable transportation is gaining unprecedented importance. With climate change concerns intensifying and corporate responsibility becoming a key performance metric, industries are re-evaluating their transport choices. Among the options, inland waterways present a compelling case as a greener and more efficient mode of cargo movement.
Background:
Transportation is a cornerstone of global trade and economic development, but it is also a major contributor to greenhouse gas (GHG) emissions. Road transport alone accounts for nearly 70% of freight-related carbon emissions worldwide, while rail and air contribute smaller but still significant shares. As countries and corporations commit to net-zero targets, there is increasing pressure to adopt low-carbon and sustainable logistics solutions.
Inland waterways have historically been a vital mode of transport, especially for heavy and bulk goods. However, their potential has often been underutilized due to infrastructure constraints, policy gaps, and the dominance of road and rail networks. Renewed interest in waterborne logistics is driven not only by environmental concerns but also by cost efficiency, reduced congestion, and socio-economic benefits for communities along the waterways.
With ESG (Environmental, Social, and Governance) considerations becoming central to corporate strategy, integrating waterways into supply chains offers a tangible way to reduce carbon emissions, improve sustainability reporting, and align with both national and international climate goals. This shift represents a convergence of operational efficiency and responsible environmental stewardship.
Environmental Impact:
Waterway transport is one of the most energy-efficient and environmentally friendly modes of moving goods. Compared to road and rail transport, waterways can drastically reduce carbon emissions, contributing significantly to corporate ESG goals and global carbon neutrality efforts.
Carbon Emission Comparison (per ton-kilometer):
Source: International Energy Agency (IEA), 2023 data
As the table illustrates, waterways offer up to 75% lower carbon emissions than road transport and about 50% lower than rail, making them a compelling option for sustainable logistics.
Economic and Social Benefits:
Beyond environmental advantages, waterways reduce highway congestion, lower transportation costs, and minimize accidents, aligning with the ‘Social’ aspect of ESG. Local communities along waterways gain employment opportunities in logistics, port operations, and supporting industries.
Governance and Policy Alignment:
From a governance perspective, adopting waterway transport reflects proactive risk management and regulatory compliance. Government initiatives like the Bharatmala and Jal Marg Vikas Project in India aim to develop inland waterways as part of national infrastructure growth while promoting low-carbon logistics. Corporates using these channels demonstrate alignment with national sustainability policies and international ESG standards.
Current Status of Inland Waterways in India
India's inland waterways sector has experienced significant growth and transformation in recent years, positioning it as a pivotal component of the nation's sustainable transport infrastructure.
Expansion of National Waterways
As of 2025, India has declared 111 waterways as National Waterways under the National Waterways Act, 2016, covering a total length of approximately 20,275 km across 24 states . The Inland Waterways Authority of India (IWAI) has been instrumental in developing and maintaining these waterways, facilitating the movement of goods and passengers.(shipmin.gov.in)
Record Cargo Movement
In the fiscal year 2024–25, India's inland waterways achieved a record cargo movement of 145.5 million metric tonnes (MMT), marking a significant increase from 18.1 MMT in 2013–14. This growth underscores the sector's potential in reducing road congestion and lowering carbon emissions .(DD News)
Infrastructure Development
The development of critical infrastructure, including Multi-Modal Terminals (MMTs), Inter-Modal Terminals (IMTs), community jetties, and floating terminals, has been a priority. Notably, the National Waterways (Construction of Jetties/Terminals) Regulations, 2025, have been introduced to streamline the establishment and operation of terminals, encouraging private sector investment .(Press Information Bureau, Press Information Bureau)
Strategic Initiatives
The government's Inland Waterways Strategy for 2025–2027 aims to operationalize 76 National Waterways by 2027, with an expected cargo volume increase of 156 million tonnes per annum by the end of FY 2026. This initiative aligns with the broader objectives of the Maritime India Vision 2030 and the Gati Shakti National Master Plan .(bombaychamber.com, UPSC Guide)
Urban Water Transport Projects
Urban water transport systems are gaining momentum, with the success of the Kochi Water Metro serving as a model for other cities. Feasibility studies are underway for implementing similar projects in cities like Varanasi, Patna, Ahmedabad, and Mumbai, aiming to enhance urban mobility and reduce traffic congestion .(Wikipedia)
State-Wise Inland Waterways Length (2025)
Key Highlights:
Assam has made significant strides, with over 1,168 km of waterways operational, including the recent activation of National Waterway-57 (Kopili River) for cargo transport. (The Times of India)
Jammu & Kashmir is developing infrastructure on National Waterways-26 (Chenab), NW-49 (Jhelum), and NW-84 (Ravi), with a new IWAI office opened in Srinagar to oversee these projects. (The Times of India)
National Initiatives: The government aims to increase the freight share of inland waterways from 2% to 5% by 2030, targeting over 200 million tonnes of cargo annually. (Drishti IAS)
Conclusion:
India’s inland waterways are rapidly evolving into a key pillar of sustainable transport. With 111 National Waterways covering over 20,000 km, significant infrastructure developments like Multi-Modal Terminals (MMTs), and ambitious government initiatives under Jal Marg Vikas, Maritime India Vision 2030, and Gati Shakti, waterways are becoming a viable, low-carbon alternative to road and rail transport.
State-wise developments, such as Assam’s operational waterways, Kerala’s extensive network, and the emerging waterways in Jammu & Kashmir, demonstrate a nationwide commitment to enhancing logistics efficiency while reducing carbon emissions. When compared to road and rail, waterways can reduce carbon emissions by up to 75%, making them highly aligned with ESG goals and corporate sustainability targets.
In addition to environmental benefits, inland waterways also offer economic advantages, such as lower transportation costs, reduced congestion, and new employment opportunities for local communities. For corporates and policymakers alike, investing in and utilizing inland waterways represents a strategic, ESG-driven decision, contributing to India’s goal of low-carbon, sustainable, and efficient freight transport.
Key Takeaway:
Integrating inland waterways into India’s logistics ecosystem is no longer just a policy objective—it is a transformational step toward achieving environmental sustainability, social impact, and governance excellence.
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