IWAI Achieves Major Milestones in Inland Water Transport with Kalughat and Haldia Terminals Operational

In a major stride toward realizing India's vision of a sustainable, multimodal logistics ecosystem, the Inland Waterways Authority of India (IWAI) under the Ministry of Ports, Shipping and Waterways has achieved two significant milestones under the Jal Marg Vikas Project (JMVP) on National Waterway-1 (NW-1).

The Kalughat Intermodal Terminal (IMT) in Bihar has been officially handed over to Summit Alliance Port East Gateway (India) Pvt. Ltd. (SAPL) for operations and maintenance, while the Haldia Multi-Modal Terminal (MMT) in West Bengal has commenced cargo operations with its first consignment of Granulated Blast Furnace Slag (GBFS) from Tata Steel headed to Pandu, Guwahati, Assam.

Together, these developments mark a transformative phase in India's inland water transport (IWT) journey—enhancing cargo movement efficiency, fostering public-private partnerships (PPP), and strengthening environmentally sustainable logistics across the Ganga-Bhagirathi-Hooghly river system.

Kalughat Intermodal Terminal: Empowering Trade and Connectivity in Bihar

Strategically located in Saran district, Bihar, the Kalughat Intermodal Terminal (IMT) has been developed by IWAI with financial and technical support from the World Bank. The terminal is designed to handle a wide range of cargo, including bulk, containerized, and break-bulk commodities, significantly improving trade flow in eastern India.

Under the newly operational PPP arrangement, SAPL will operate and maintain the terminal on a revenue-sharing model, with IWAI entitled to 38.30% of gross revenue from operations. This model ensures that both public and private stakeholders benefit from efficient management while maintaining transparency and sustainability.

By leveraging private sector efficiency, the Kalughat IMT is expected to reduce logistics costs, enhance cargo throughput, and promote modal shift from road and rail to waterways—aligning with India's climate and sustainability goals.

"The Kalughat terminal represents a new model of infrastructure partnership—one where economic growth, environmental sustainability, and public interest converge," said Shri Sunil Kumar Singh, Chairman In-charge, IWAI.

Haldia Multi-Modal Terminal: Gateway to the North-East

At the downstream end of NW-1, the Haldia Multi-Modal Terminal (MMT)—another landmark project under JMVP—has begun cargo operations. The inaugural shipment involved Tata Steel's GBFS consignment bound for Pandu, Guwahati, symbolizing the terminal's role in bridging eastern and northeastern India via inland waterways.

Operated by IRC Natural Resources Pvt. Ltd., the Haldia MMT boasts a cargo handling capacity of 3.08 million metric tonnes per annum (MMTPA). The facility is equipped to handle a wide variety of cargo—bulk, break-bulk, and containerized—and integrates road, rail, and water transport modes.

The operationalization of the terminal is expected to:

• Reduce logistics costs by 30–40% compared to conventional routes

• Cut carbon emissions by shifting freight from road to river transport

• Boost trade connectivity between industrial hubs in eastern India and consumer markets in the North-East

• Promote regional economic development by stimulating local industries and employment

"With the Haldia terminal operational, we are witnessing a new era of waterborne trade connectivity, linking ports, industries, and hinterland economies," said Shri Singh.

Strengthening the Jal Marg Vikas Project and National Waterway-1

The Jal Marg Vikas Project (JMVP) is IWAI's flagship initiative for modernizing India's inland water transport infrastructure, supported by the World Bank. Covering a 1,390-kilometre stretch of NW-1—spanning Uttar Pradesh, Bihar, Jharkhand, and West Bengal—the project focuses on:

• Fairway development to ensure navigability for large cargo vessels year-round

• Construction of multi-modal and intermodal terminals like Varanasi, Sahibganj, Haldia, and Kalughat

• Installation of advanced navigational systems and river information services (RIS)

• Creation of over 60 community jetties to benefit local riverine communities

Together, these efforts are reshaping inland water transport into a vital component of India's multimodal logistics grid, integrating seamlessly with road, rail, and coastal shipping corridors.

Public-Private Partnerships: Driving Efficiency and Sustainability

The transition of the Kalughat and Haldia terminals to PPP-based operations marks a strategic shift from government-built infrastructure to professionally managed, market-driven logistics hubs.

This model not only ensures operational efficiency but also introduces performance-based accountability, transparent revenue sharing, and financial sustainability—key ingredients for the long-term success of India's inland water transport sector.

IWAI's approach underlines the government's intent to "Build, Operate, and Thrive"—where infrastructure creation is followed by efficient, private-sector-led operations, benefiting both industry and citizens.

"The PPP model for inland terminals is a game-changer. It unlocks private capital and management expertise while safeguarding national interests and public welfare," Shri Singh added.

Sustainable Logistics: A Pathway to Viksit Bharat

With these achievements, IWAI continues to advance India's broader "Viksit Bharat" vision of sustainable, efficient, and inclusive growth. Inland water transport is emerging as a key pillar of India's green logistics revolution, offering:

• Lower transportation costs and emissions compared to road and rail

• Reduced congestion on highways and rail networks

• Employment generation in rural and riverine areas

• Boost to exports through enhanced multimodal connectivity

By promoting inland waterways as a viable logistics alternative, the government is strengthening India's competitiveness in the global trade ecosystem while upholding its commitment to climate-resilient development.

Toward a Greener, More Connected India

The operationalization of the Haldia MMT and Kalughat IMT under PPP mode is more than an infrastructure milestone—it is a defining step toward a "Greener, Connected Bharat" where innovation, efficiency, and sustainability drive progress.

As India accelerates toward its goal of logistics cost reduction to 8% of GDP, the inland waterways sector—powered by initiatives like JMVP—stands poised to play a transformative role in reshaping the nation's logistics landscape for decades to come.