In order to reduce logistic costs and increase road safety, government is planning to use waterways in the country to transport goods including fertiliser, cement and steel. Union Minister Minister for Road Transport and Highways Nitin Gadkari said we want to diversify road traffic to water transport,
He said that “Waterways are the cheapest mode of logistics for cargo. While the average cost of freight movement by road is Rs 2, it comes down to Rs 1 when the mode of transportation is train, and further drops to 20 paise when transported through waterways. It is beneficial for the State Government as it creates job.
Gadkari pointed that the logistics cost in India is 18%, which is higher than China 8-10%, Japan 10-12% and European Union 8-12%. He said that European Union countries and Japan transport around 12 per cent of their cargo through waterways, while China moves eight-ten per cent of its cargo through waterways. In India, meanwhile, the rate of cargo movement via waterways is less than eight per cent.