Cargo transports to soon find a waterway, but at what cost?

Raveena Singhmoneycontrol.comToday, the government came up with a plan to boost cargo shipments through waterways. Roads, the preferred surface so far to transport goods, will be less congested once the heavy cargo trucks stop plying. In order for companies to take to shipments over water, the government went ahead and said it would offer an incentive of Rs 1 per tonne per kilometer of cargo to them. On the face of it, this plan ties in with Road Minister Nitin Gadkari's goal of making use of the country’s 50,000 kilometres of sea and river fronts as waterways. To quote him, "India has its unique advantage. Its 14 states are bestowed with 7,500 kilometres of coastline with 14,500 km of potentially navigable waterways. In addition, 116 rivers across the country provide 35,000 kilometres of navigable stretches. The plan looks fool-proof. Transportation by waterways cost only 25 paisa per kilometer, whereas rail and road would set a company back by Rs 1.50 and Rs 2.50, respectively for the same distance. But there are a few cons, too.  Roads and railway transportation companies may lose their business. For companies, the switch to waterways will be no sweat. But freight owners or transport companies who play from one state to another will most probably be hit. Also states with no port facilities will have nothing to gain unless they broaden the expanse of transporting to states with port facilities.Currently, road freight accounts for 54 percent and railways 33 percent of the cargo shipment in the country. Only 6 percent of cargo is shipped through waterways and the rest 7 percent sent through pipelines.Through the move, the government is targeting to increase the share of waterways transportation from 6 percent to 10 percent by 2020. To be sure, it is a massive project, and if it has to be undertaken with any success at all then a few laws will have to be changed. Currently, only Indian-registered ships can carry cargo on local routes. Let's make a start here.