“Uttar Pradesh is transforming its trade landscape with new inland ports along the Ganga, enhancing connectivity and reducing logistics costs. The development of National Waterway-1, backed by the Jal Marg Vikas Project, aims to streamline cargo movement, promote economic growth, and integrate with regional trade networks, positioning UP as a key player in India’s inland waterways ecosystem.”
Uttar Pradesh’s Inland Ports: A New Era for Trade
Uttar Pradesh (UP) is witnessing a significant transformation in its trade infrastructure with the development of new inland ports along the Ganga-Bhagirathi-Hooghly river system, designated as National Waterway-1 (NW-1). The state’s strategic location in the Gangetic plain, coupled with its vast economic potential, makes it a focal point for India’s ambitious inland waterways development program. The Jal Marg Vikas Project (JMVP), supported by a $375 million World Bank loan, is driving this initiative by enhancing the navigability of NW-1 from Haldia to Varanasi, a 1,390-km stretch, to facilitate the movement of large cargo vessels weighing up to 1,500–2,000 tonnes.
The development of multi-modal terminals (MMTs) at Varanasi and Sahibganj, along with planned facilities in other parts of UP, is central to this transformation. The Varanasi MMT, a flagship project under JMVP, has already enhanced cargo handling capabilities, enabling the transport of goods like coal, cement, food grains, and fertilizers. In FY25, India’s inland waterways recorded a historic cargo movement of 145.5 million metric tonnes (MMT), with NW-1 contributing significantly, carrying 9.6 MT of freight in the current fiscal year. This marks a substantial increase from 96.31 MMT in FY22, reflecting a compound annual growth rate (CAGR) of 20.86% since FY14.
These inland ports are designed to reduce logistics costs, which in India account for 13–14% of GDP, compared to 8–9% in developed economies. Inland water transport (IWT) is notably cost-effective, with an estimated cost of ₹0.50 per kilometer, compared to ₹1 for railways and ₹1.50 for roads. By redirecting freight from circuitous land routes to the closer Kolkata-Haldia port complex, UP’s new ports are expected to save both time and money for businesses in the state’s resource-rich regions.
The integration of NW-1 with other transport modes, such as the Eastern Dedicated Rail Freight Corridor and highways, is a key feature of this initiative. This multi-modal connectivity ensures seamless cargo movement, benefiting industries and farmers in UP’s agriculturally rich hinterland. The ports also support regional trade with neighboring countries like Bangladesh, Bhutan, and Nepal through the Indo-Bangladesh Protocol Route, which connects NW-1 with National Waterway-2 (Brahmaputra) for enhanced trade opportunities. A recent milestone saw a cargo ship carrying food grains dock at Pandu from Patna, highlighting the potential for fixed-schedule sailings between these waterways.
To ensure environmental sustainability, the Inland Waterways Authority of India (IWAI) has adopted a “working with nature” approach. Measures include restricting barge speeds to 5 km/h in ecologically sensitive zones, using noise control and animal exclusion devices, and enforcing zero-discharge standards to protect the Ganga’s biodiversity. Dredging is limited during breeding seasons to minimize disruption to aquatic species like the Gangetic dolphin. These efforts align with India’s goal of achieving zero-carbon emissions by 2070.
The government’s push to increase the modal share of IWT to 5% by 2030, as outlined in the Maritime India Vision 2030, underscores the strategic importance of UP’s inland ports. With investments of ₹35,000 crore planned by 2047, the state is poised to become a hub for cargo movement and economic growth. The development of tourism along the waterways, including river cruises like the MV Ganga Vilas, which connects Varanasi to Dibrugarh, further enhances UP’s appeal as a trade and tourism destination.
Despite these advancements, challenges remain. Seasonal variations in river depth, limited private-sector investment, and the need for continuous dredging pose hurdles. The IWAI is addressing these through incentives like waiving waterway user charges for three years and promoting public-private partnerships to attract investment in terminal development and vessel manufacturing. Digital initiatives, such as the River Information System and the IWAI’s digital portal launched in April 2025, aim to improve navigation and operational efficiency.
UP’s inland ports are not just infrastructure projects but catalysts for economic and regional integration. By leveraging the Ganga’s navigable potential, these ports are set to redefine trade dynamics, connecting UP’s hinterland to national and international markets while fostering sustainable development.
Disclaimer: This article is based on information sourced from recent reports, government announcements, and industry insights available on the web. While efforts have been made to ensure accuracy, readers are advised to verify details with official sources for critical decision-making.