Experience from other countries shows that carrying bulk cargo by water is cheaper and less polluting that transporting it by road and rail. Goods in India, however, mostly travel by congested road and rail networks, slowing cargo movement and increasing the costs of trade logistics, which are estimated to account for as much as 18 % of the country's GDP. The current logistics network is also insufficient to accommodate the threefold increase in freight movement expected over the coming decade.
"Harnessing the mighty rivers of South Asia to build an effective multi-modal transport strategy will give the region a competitive edge on the global scene," says Junaid Ahmad, World Bank Country Director for India. "This project will allow India to move goods seamlessly between road, rail and water, and bring down logistics' costs. Importantly, this Project will help IWAI put in place environmentally-sustainable strategies for inland navigation that can be replicated on other waterways in India and other countries."
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