Possibilities of Shipbuilding Facilities in Assam

Assam, with its rich network of rivers including the mighty Brahmaputra, presents immense potential for the development of a thriving shipbuilding and repair industry. With over 1,980 km of navigable waterways, Assam has long relied on river transport for cargo and passenger movement. As India focuses on reviving inland water transport (IWT) and reducing logistics costs, Assam is uniquely positioned to emerge as an eastern hub for shipbuilding, repairs, and allied maritime services.

Why Should a Shipbuilding Company Invest in Assam?

1. Strategic Location with Access to National and International Markets

• Assam lies at the heart of Northeast India, offering connectivity to Bangladesh via Protocol Routes and access to Southeast Asia under Act East Policy.

   

• The presence of National Waterway-2 (NW-2) along the Brahmaputra and the Indo-Bangladesh Protocol Route makes Assam a gateway for regional and cross-border riverine trade.

2. Availability of Waterways and Government Focus

• The Government of India and Assam are both heavily investing in inland waterways infrastructure under Sagarmala, Jal Marg Vikas Yojana, and World Bank-funded Assam IWT Project.

   

• Over 200 terminals and ghats have been identified for modernization and construction, creating demand for new vessels.

3. Lower Cost of Infrastructure and Skilled Workforce

In comparison to traditional shipbuilding centers such as Mumbai, Kochi, Chennai, Visakhapatnam, or Kolkata, the cost of land acquisition, industrial leasing, and operations in Assam is substantially lower. This cost advantage stems from several factors:

• Affordable Land Availability: Assam offers expansive land parcels along the riverbanks and within notified industrial zones that are far more economical than metropolitan coastal areas. 

   

• Government-Owned Riverfront Land: Significant stretches of government land along rivers such as the Brahmaputra are available for industrial development. The Government of Assam is exploring long-term lease models or concessional allotments specifically to attract shipbuilding and allied industries.

• Lower Construction and Infrastructure Development Costs: The cost of construction materials, labor, and infrastructure setup is more competitive in Assam, especially in and around Guwahati, Dibrugarh, Jorhat, and Dhubri, where the riverine economy is evolving rapidly.

• Reduced Utility and Operational Overheads: Expenses related to power, water, and other utilities in Assam are lower due to targeted subsidies and government support for industrial consumers, particularly those investing in the logistics and inland waterways sector.

• The region has a base of technically trained manpower from ITIs and polytechnics, and the government is willing to support capacity building with the upcoming marine institute.

4. Untapped Market Potential

• Currently, most vessels operating in Assam are built in West Bengal or the South, incurring high transportation and logistics costs.

• An Assam-based facility can capture local demand for new ferries, barges, cargo vessels, and rescue boats.

Benefits to Shipbuilding Companies

1. Captive Market

• Immediate demand from public sector agencies like IWAI, AIWCL, DIWT and private operators for ferries, Ro-Ro vessels, cargo barges, and pontoons.

2. Government Incentives

• Possible benefits under Industrial & Investment Policy of Assam, 2019 and Assam Logistics & Warehousing Policy, 2022. 

• Support under the Maritime India Vision 2030 and Make in India initiative.

3. First-Mover Advantage

• Early investors in shipbuilding facilities in Assam can establish dominance and build long-term relationships with government and private players.

4. Export Opportunities

• Proximity to Bangladesh opens opportunities to export vessels for inland use under the India-Bangladesh IWT protocol and bilateral ship orders.

Potential for Shipbuilding Facility in Assam

1. Types of Vessels in Demand

• Passenger ferries (mechanised and Ro-Ro)
• Cargo barges and containers
• Fuel carriers and utility boats
• Rescue, survey, and service boats

2. Estimated Demand

• With increasing focus on modal shift to waterways, Assam is likely to see demand for over 300+ vessels in the next 5–10 years for public and private operations.

3. Geographic Areas of Interest

• Pandu (Guwahati): Already a major hub with IWAI terminals.
• Dhubri, Dibrugarh, and Jorhat: Proximity to high-traffic routes.
• Bogibeel: Emerging as a new cluster with multimodal connectivity.

Assam has all the makings of becoming the next major shipbuilding hub in Eastern India. With increasing cargo and passenger movement through inland waterways, support from both state and central governments, and its geographic proximity to regional and international markets, the state offers strategic and economic advantages for companies seeking to invest in shipbuilding, repairs, and marine services. Assam Inland Waterways must now actively promote this opportunity with well-crafted policies, investor outreach, and infrastructure readiness to catalyse private investment in this crucial sector.