In a strategic Indo-German collaboration set to revolutionize India’s inland water transport (IWT) sector, Germany’s Rhenus Group — one of Europe’s largest inland shipping companies — has signed a memorandum of understanding (MoU) with India’s Ministry of Ports, Shipping and Waterways (MoPSW). Under the agreement, Rhenus will deploy 100 barges across India’s national waterways in a phased rollout, marking one of the most significant foreign investments in the country’s riverine cargo network to date.
Phase-Wise Expansion to Modernize Cargo Movement
Initially, the German firm will introduce 20 barges and six pushers by the end of 2025, with the aim of transporting over one million tonnes of cargo annually. The project will eventually scale up to a 100-barge fleet, broadening operations to more waterways across the country.
According to the ministry’s official statement, the MoU will establish scheduled barge services and promote inland cargo transport solutions. “This partnership will introduce advanced river logistics models, drawing from the European inland navigation playbook,” the ministry said.
Strategic Routes: Ganga, Brahmaputra, Barak and Beyond
Rhenus’ operations will begin on National Waterways 1 (Ganga), 2 (Brahmaputra), and 16 (Barak), as well as the Indo-Bangladesh Protocol (IBP) route. These arteries serve India’s northern, eastern, and northeastern regions, offering significant scope for bulk and break-bulk cargo movement. Over time, the company plans to expand into additional waterways under India’s growing national network.
Vivek Arya, CEO of Rhenus Logistics India, said the company brings “decades of operational know-how and a fleet of over 1,100 barges worldwide” to India’s IWT space. “We are committed to delivering sustainable, cost-effective cargo solutions tailored for India’s rivers,” he added.
$100 Million Investment to Power India’s Green Transport Vision
In previous comments to Business Standard, Rhenus Group CEO Tobias Bartz had confirmed the company’s intent to invest at least $100 million in India’s inland waterways, with a particular focus on project cargo. This investment aligns with India’s broader push to transition to greener, multimodal logistics networks.
The agreement is also seen as a vital component of the Maritime India Vision 2030 — the national roadmap to enhance India’s maritime sector and reduce its logistics costs through inland navigation and coastal shipping.
Indian Government Hails Strategic Partnership
Union Minister for Ports, Shipping & Waterways, Sarbananda Sonowal, welcomed the German collaboration, noting that “this partnership empowers our inland waterways with global expertise, boosting them as an efficient and sustainable cargo transport alternative.”
Speaking at the MoU signing ceremony, the minister added, “Under the leadership of Prime Minister Narendra Modi, we are revamping India’s waterways as an engine of national growth and green development.”
Inland Waterways on the Rise in India
India’s inland water transport sector has seen exponential growth in the last decade. From just 3 operational National Waterways in 2014-15, the number has grown to 29 in 2024-25. Cargo throughput has jumped nearly fivefold — from 30 million metric tonnes per annum (MMTPA) to over 145 MMTPA — amounting to a cumulative movement of 779 million tonnes over ten years.
Today, India’s IWT network covers 14,500 km of navigable waterways spread across 111 declared National Waterways, offering significant potential to reduce road congestion and carbon emissions in the logistics sector.
Jal Marg Vikas Project Lays the Groundwork
The Rhenus partnership also validates the impact of the Jal Marg Vikas Project — India’s flagship initiative to enhance navigation capacity on major river routes. Through infrastructure upgrades including terminal construction, dredging, navigational locks, and digital aids, the Inland Waterways Authority of India (IWAI) has laid the foundation for robust river-based cargo systems.
TK Ramachandran, Secretary at MoPSW, and Vijay Kumar, IWAI Chairman, were also present at the signing event alongside senior officials and the Rhenus India team.
