For years, rivers have operated as efficient and effective waterways for transporting large and bulky cargo around the world. These waterways are a more convenient and reliable mode of transportation, serving as a cheaper and less polluting method than road or rail.

However, India has yet to develop this cheaper and greener mode of transportation, as goods still travel by road and rail networks. These methods continually slow the movement of cargo and increase trade costs so much so that India’s logistics costs are projected to account for as much as 18 percent of the country’s GDP.

In response to these obstacles, The World Bank approved $375 million to support the construction of the first modern waterway in India, which will be implemented on a 1,360 km stretch of the Ganga river. This project will bring thousands of jobs in cargo logistics and necessary transportation to one of the country’s most populated regions.

The loan will help support the Inland Waterways Authority of India as they develop the infrastructure and navigation services necessary in building the waterway, known as National Waterway 1. The capacity augmentation of National Waterway 1 will preserve more than 150,000 tons of CO2 equivalent in greenhouse gas emissions per year.

In generating about 370 million tons of freight annually, the region only utilizes a tiny fraction — about five million tons — toward water transportation. Once operational, the waterway in India will implement an additional transport network along the river, partnering with the Eastern Dedicated Rail Freight Corridor, as well as with other existing networks of highways. These various transportation methods will help the region’s industries and manufacturing units pick and choose between different modes of transportation as they send their goods to markets in India and abroad.

With the assistance of the substantial loan from the World Bank, India will soon construct an innovative waterway that will not only be a cheaper and greener mode of transportation but will bring jobs and necessary transportation to the region, potentially growing their economic, social and political structures.

– Brandon Johnson

Photo: Flickr