Global Trends

The utilization of waterways for transporting cargo is highly developed in the Western world due to its obvious advantages. The following facts are relevant

Modal share in European Union by ton kilometer percentages are: Road 42% Rail 10% and Water is 48%. China moves 22% of its domestic cargoes by water. Inland Water Transport systems has been a critical factor of growth for developed countries.
The United States with its water transport infrastructure over the Missouri-Mississippi and the intercoastals carries over 630 Mn tons of cargo valued at $ 75 Bn. A network of 30,000 km of waterways linking the North Sea to the Black Sea carry 425 Million MT in the European Union. The Dutch Government offers tax credits for water transport. This added over 8 Mn tonnes of additional cargo transported over water in the Netherlands.   
 
Indian Scenario
India, with 7517 Kms long coastlines, is one of the longest in the world but is largely underutilized for costal and barging transport. Presently its modal share of water transportation is small.

The Modal Share of various means of transportation in India by Tonne-Kilometer:

Road 54%
Rail 34%
Pipeline 4%
Inland waterways  1%
Coastal shipping 7%

However, the Government has realized the potential of Costal & Inland Water transportation as a catalyst in the development of the nation and has taken several steps to promote the same.

The Inland Waterways Authority of India (IWAI) was formed in 1986 for development and regulation of inland waterways for shipping and navigation. The Authority primarily undertakes projects for development and maintenance of IWT infrastructure on national waterways through grant received from Ministry of Shipping, Road Transport and Highways.
 
 
The National Waterways System

 
 
Role of IWAI in Promoting Inland Water Transportation
Barge Subsidy

To encourage development of Inland Water Transportation, the IWAI is providing cash subsidy upto 30% of the cost of barges which are to be used for transporting cargo in the National Waterways. Taking advantage of this scheme, LOTS Shipping has already commissioned two barges to be used in the National Waterways.

Inland Container Terminals

IWAI has constructed a series of container terminals in the National Waterways to facilitate storage of containers. LOTS Shipping has been offered the usage these terminals free of charge.