Unlocking the Potential of Cargo Transportation in Assam

1. Overview of Assam’s Geographical Advantages and Waterway Network

Assam’s unique geographical position in the northeastern part of India, combined with its extensive river systems, establishes it as a strategic hub for regional logistics and transportation. The state is traversed by the Brahmaputra and Barak rivers, two of the most significant river systems in India. These rivers form a dense network of navigable waterways, offering a cost-effective, sustainable, and eco-friendly mode of transportation.

The Brahmaputra River, one of the largest rivers in the world, ranks fifth globally in terms of average discharge. It has an average width of 5.46 km, an average annual discharge of about 20,000 cusecs, and an average dry season discharge of 4,420 cusecs. The river flows 891 kilometers through Assam and is designated as National Waterway 2 (NW-2).

The Barak River, the second largest river system in Northeast India, has a total length of 900 km and drains 52,000 sq. km. In Assam, it stretches over 121 kilometers as National Waterway 16 (NW-16), linking southern Assam to key trade corridors.

Assam’s proximity to Bangladesh adds a crucial international dimension, with the Indo-Bangladesh Protocol routes enabling cross-border trade and maritime access through Mongla and Chattogram ports. The rich network of tributaries ensures last-mile connectivity to remote and rural areas. These geographical assets make Assam a natural logistics and industrial hub, capable of supporting multimodal cargo, passenger transport, and eco-tourism development.

2. Background: Policy and Sectoral Importance

Out of India’s total 14,500 km of potentially navigable waterways, 1,980 km lie within Assam, accounting for over 10% of the National Waterway network. Additionally, nearly 32% of the country's water resources flow through Assam via the Brahmaputra and Barak rivers.

Recognizing the strategic significance of these waterways, the Government of Assam has identified the Inland Water Transport (IWT) sector as a key pillar of its transportation and economic development strategy. This vision aligns with India’s Maritime India Vision 2030, PM Gati Shakti, and the Act East Policy.

Investments in the IWT sector aim to:

• Modernize infrastructure
• Integrate IWT with rail and road
• Incentivize private participation
• Create multimodal logistics hubs
• Boost trade, tourism, and connectivity

This approach seeks to unlock Assam’s economic and social potential while promoting green growth and inclusive development.

3. Scope of Industrialization and Cargo Growth

Assam plays a pivotal role as the gateway to Northeast India, with over one million trucks passing through annually, resulting in an estimated cargo movement of 220 million tonnes, growing at a CAGR of 8%. Inland Waterways can take a significant share of this movement, particularly in transporting bulk cargo, construction materials, agriculture produce, petroleum products, and containers.

Economic Indicators Supporting IWT Growth

• Assam's GSDP growth rate increased from 7.88% in 2014–15 to 9.62% in 2023–24, approaching the 10% target under Assam Agenda 2030.

• The manufacturing sector’s GSDP share grew from 10.6% (2015–16) to 20.12% (2023–24).

• Employment in manufacturing increased from 11% to 30%, close to the 33% goal.

• The industry sector’s growth rate rose from 2.28% to 10%, reflecting rising investments.

These trends indicate strong growth in industrial output, employment, and freight demand, thereby increasing the need for a robust logistics ecosystem, where IWT can play a major role.

4. Possibilities of Cargo Transportation in Assam

a. Natural River Network Advantage

• Assam is endowed with 1,980 km of navigable waterways, including 891 km of NW-2 and 121 km of NW-16).

• The Brahmaputra River (NW-2) connects Sadiya to Dhubri and links to Bangladesh (Protocol Route), facilitating international cargo movement.

b. Connectivity with Bangladesh and Beyond

• The Indo-Bangladesh Protocol Route enables cargo transportation to and from ports like Mongla and Chattogram, creating direct maritime access.

• Enhances trade routes to Bhutan, Nepal, and Myanmar.

c. Multimodal Integration

• There is huge possibility of integrating Inland Waterways in Assam with railways, roadways, and airports for seamless cargo movement.

• The Jogighopa Multimodal Logistics Park and terminals like Pandu, Dhubri, and Silghat are being developed to handle bulk and container cargo.

d. Cost and Energy Efficiency

• Inland waterways offer 30-40% lower costs compared to road transport and significantly lower carbon emissions.

• Ideal for transporting bulk commodities such as cement, coal, agricultural produce, construction material, FMCG, and petroleum products.

5. Why Should a Cargo and Allied Services Company Invest in Assam?

a. Strategic Trade Gateway

• Assam serves as the logistics hub for Northeast India and a transit route for trade with Bangladesh, Bhutan, and Southeast Asia.

• Opportunities to establish container terminals, cold chains, and bulk handling facilities.

b. Government Incentives and Support

• Cargo handling subsidies, land lease at concessional rates, and capital subsidies through Sagarmala, PM Gati Shakti, and North East Industrial Development Scheme (NEIDS).

• State and central government initiatives to promote PPP investments in logistics and cargo.

c. Lower Operational Costs

• Land and manpower costs are significantly lower than traditional logistics hubs.

• Availability of technically skilled manpower from local ITIs and polytechnics.

d. Emerging Industrial and Economic Zones

• Assam is developing industrial corridors, logistics parks, and export promotion zones close to waterways, boosting demand for cargo services.

6. Benefits for Cargo and Allied Services Companies

• Reduced Transportation Cost & Time: Faster delivery via water routes, avoiding congestion and tolls.

• First-Mover Advantage: Early investments in cargo terminals, warehouses, and shipping services will establish brand dominance in a developing market.

• Sustainability Branding: Inland water transport aligns with ESG and green logistics goals.

• Diversification Opportunities: Companies can expand into shipbuilding, fleet operations, port services, warehousing, and last-mile delivery.

7. Potential for Cargo Facility Development in Assam

Assam holds transformative potential as an inland cargo transportation hub in Eastern South Asia. With favorable geography, supportive government policies, developing infrastructure, and increasing demand, the region is poised for growth in cargo and logistics. By tapping into inland waterways, cargo and allied service companies can enjoy long-term, sustainable growth while playing a pivotal role in the economic development of the Northeast region.