Transportation has become synonymous with road and rail, and sadly in that order, without regard to fuel economy considerations. The merits of coastal and inland water transport (IWT) have been overlooked. One horse power is estimated to move 150 kg on road, 500 kg on rail and 4,000 kg on waterways. This government is trying to undo decades — rather, centuries — of neglect by promising a law that will turn over 100 rivers into transport channels. Inland waterways were a favoured mode of transport in British India till the middle of the 20th century, but the railways finally prevailed for its speed in moving materials and men in wartime. Over the last two decades, roads have trumped railways, coinciding with a shift in public investment priorities. While there can be no denying the need to develop all forms of transport in a growing economy whose freight carrying capacity is unable to keep pace with demand (the latter grows at the same or higher rate than the GDP), the importance of the right mix should not be forgotten. India transports 57 per cent of its goods by road (22 per cent in China), 36 per cent by rail (47 per cent in China) and 6 per cent through waterways, of which IWT is 0.5 per cent (30 per cent in China of which inland waterways is 8.7 per cent). The new government has decided to accord the Railways pride of place in its investment plans. A higher outlay for waterways infrastructure is a logical next step. Without discounting fiscal constraints, public investment in IWT can certainly be stepped up from the current levels of about ₹120 crore annually.

India has over 14,000 km of navigable inland waterways, of which barely 3,000 km is put to use. IWT’s potential to move cargo has only been realised in the Goa region. The Ganga can be used to transport coal to the numerous thermal plants planned along its banks. But the biggest gain would arise from a transit treaty with Bangladesh, which could transform the economy of the North-East. That fell through in 2013, following dissonance within India on the sharing of Teesta waters. The potential of shipping along India’s 7,500 km coastline is yet to be fully realised, given the lack of berthing facilities. The Centre and States should step up investment on a priority basis.

Surface Transport Minister Nitin Gadkari has promised a PPP thrust, but mistakes made in the road sector should not be repeated. As with toll roads, lack of traffic in the initial stages could drive up costs of operators, which could render IWT unattractive. The government should help operators tide over the gestation period. Given the shortage of vessels of about 1,000 tonnes capacity for IWT — there are only about 600 such vessels operating today – vessel building should be given infrastructure status. The Dredging Corporation of India should step up efforts — while, however, allaying valid concerns over sand mining. In sum, the government’s thrust has not come a moment too soon; now, for some smooth sailing.

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