An overview of inland water transport

Inland water transport means the transportation of people and goods through navigable waterways such as rivers, canals, lakes, backwaters, etc., located within a country’s boundary.  A navigable inland waterway is a stretch of water, which does not form a part of the sea. Such a waterway supports the navigation of a craft with a capacity of at least 50 tonnes when normally loaded. 

The navigable waterways are an efficient and convenient means of transportation for many business entities. However, this mode of transport is presently underutilised in India.

Categories of Water Inland Transport 

Based on the size of the crafts that can ferry through the water bodies and some other factors, inland water transport may be categorised as follows:

River Waterways: Rivers are categorised under shallow water bodies with varying span lengths. River transport facilitates the movement of small to medium-sized crafts for commercial, public and private transport. Since the depth of rivers is limited, river vessels are termed shallow draft vessels.

Some vessels or crafts that ferry through the rivers include:

• Cargo carriers
• Fishing vessels
• Barges
• Steamcrafts
• Pleasure Yachts
• River ferries, etc.

Canals: Canals are waterways that have been cut through artificially to facilitate transportation through boats and ships. They are man-made water bodies made to connect two or more water bodies. The following types of vessels can ply through the canals:

• Narrowboats
• Barges
• Cruisers, etc.

Backwaters: Backwaters are a network of waterways, including canals, lagoons, rivers, and lakes. Waves and shore currents form backwaters and are part of a river, which has little to no current. 

Creeks: A creek is also a type of inland waterway, which is a natural stream of water, smaller than a river. 

As compared to the other transport means, Inland waterways are beneficial in the following ways:

Relatively Low Cost: An inland waterway requires less money to develop and maintain the infrastructure than roadways, railways, etc. It only needs a terminal or quay side investment to start functioning.

Environmentally Safe: One of the major benefits of inland transport is that it is less harmful to the environment than buses, trains, trucks, etc., as it causes less air and noise pollution. Besides, it also reduces traffic congestion by taking bulk goods through waterways. Thus, the supply chain efficiency is also improved.

Facilitates Bulk Transportation: One can move bulk goods in one go through inland transport, such as ores, grains, and construction materials. This feature also reduces the cost of per-unit transportation.

High Capacity: Inland water transport is more efficient at transporting bulky goods and materials, which may be difficult to transport through roadways. Thus, it can prove to be highly useful for construction and manufacturing businesses.

Reliable Route: When the land-based routes face any disruption, such as accidents, bad weather, etc., one can rely on the water route.

Better Connectivity: The inland transport route offers better interconnectivity as it connects the lands along the river coasts with the coastal routes. They hold significant potential for the development of domestic cargo transport, tourism, passenger traffic, etc.

Manufacturers: Manufacturers who are engaged in the business of producing different types of goods may need to transport bulk quantities of goods such as iron ore, coal, etc., which they use for production. Thus, inland transport is a very feasible and cost-effective option for them.

Industries: Many industries may also use the inland mode of transport to transfer products or materials from one place to another. Some of the goods that industries may transport are agricultural products, construction materials, etc.

Businesses: Business owners can also benefit from inland transport as they can leverage the low cost to transport their requirements or products within the country.

Commodities Transported Through Inland Waterways 

Dry Goods: The inland waterways can be used to transport dry goods or commodities for manufacturing and other purposes. In some cases, it includes unpackaged goods and raw materials. 

Some examples of dry goods are agricultural products, like rice, wheat, soybeans, and corn. It can also include construction materials, such as gravel, sand, and crushed stones. 

General Cargo: It includes those goods or freight that are bulky for containerised shipping or irregularly sized to fit any container. Thus, it is transported in a bundled or stacked manner, not requiring the entire barge. It can include logs, machinery equipment, generators, coils, pipes, etc.

Liquid Goods: Many manufacturers or industries may require the transportation of bulk liquids for manufacturing or other purposes. Thus, inland transport can be used to transport crude oil, petroleum, industrial chemicals, liquid fertilisers, etc.

Containerised Cargo: Containerised cargo may also be transported through the inland route for internal transfers. Such cargo may arrive at the ocean terminals and may be transferred to the inland route for further transportation to inland terminals.

While there are many advantages and utility of inland transport, it also suffers from some downsides, which must be taken into account as it may affect transportation purposes.

Though waterway transportation is one of the cheapest out there, here are some cost factors that are involved while transporting your goods. The costs may vary depending on various factors such as the distance, type of cargo and others. 

Shipping Costs

Tolls: Some inland water routes may charge a toll for using the waterway similar to that collected on highways.

Fuel Charges: Transport costs also include the fuel charges of the vessel. It may vary based on the vessel type, distance, cargo weight, current depth, etc.

Terminal Charges: One may also incur terminal charges for using the terminal/port to load and unload the goods.

 Indirect Charges 

Additional Charges: At times, the inland waterway may not be directly connected to the destination port, requiring transportation through roads and rails. Hence, additional charges such as handling fees, loading and unloading charges, and transhipment costs may be incurred.

Optimising Routes: Sometimes, route optimisation may be required due to the limitations of waterways. It may lead to expertise costs for minimising the toll, travel time, etc.

Cargo-Related Costs 

Storage Charges: Storage costs may be involved for keeping the goods at the quayside if immediate forwarding and delivery are not possible.

Loading/Unloading Charges: This includes the cost for loading and unloading charges of the cargo at the ports and terminals. The charges may vary depending on the labour cost, type of cargo, etc.

Permits & Documentation: Transportation through waterways may require licences and paperwork, including permits, which may add up to the expenses.

Inland waterways are a very cost-effective and convenient option for transporting goods within the country. However, before you opt for this mode of transport, it is crucial to determine the type of goods, time frame, infrastructure and other factors.

While transporting goods through the waterways, it is highly recommended that they be protected with a transit insurance policy. TATA AIG offers affordable insurance plans to businesses and other entities involved in the transportation of goods through waterways, roadways, airways, etc.

Our SME insurance policy protects your goods during transit against a host of unfortunate incidents, including storms, lighting, earthquakes, theft, piracy, fire, etc. Some plans may also offer protection from damage due to improper handling, packaging, etc.

If you are looking for a marine insurance policy for your specific needs, you can rely on us for flexible coverage. We tailor your insurance to cover piracy, collision and general average losses. Moreover, our policies also offer assistance for liability claims related to cargo damage, personal injury and pollution.