Andhra Pradesh Pushes Water Logistics for Industry Access and Sustainable Transport
Andhra Pradesh is moving fast on its vision to rewire the state’s industrial backbone through a multimodal logistics network anchored by inland waterways. At a recent stakeholder consultation in Vijayawada, state infrastructure minister BC Janardhan Reddy outlined a plan that aims to shift cargo from congested roads and costly rail lines to clean, fuel-efficient water transport — a move expected to slash logistics costs and emissions while spurring equitable regional growth.
Speaking at the event hosted by the Andhra Pradesh Inland Water Authority (APIWA), Reddy emphasised that with 978 km of national waterways and a network of 57 rivers, Andhra is uniquely positioned to become India’s next big inland shipping hub. “This is not just an infrastructure investment — it’s a transformation of how we connect industries, ports, and people,” the minister said, pitching the shift as both economically strategic and environmentally critical. The state currently moves around 8 million tonnes of cargo annually via inland waterways. With ongoing and planned developments such as the Bandar Canal and Krishna River RO-RO (roll-on/roll-off) corridors, the government aims to push that number to 14 million tonnes — a 75% increase. The planned scale-up is not only about volumes but about building a resilient and green logistics grid that can weather India’s shifting energy, trade, and climate priorities.
According to Reddy, waterborne cargo makes both commercial and ecological sense. A single barge can carry up to 2,200 tonnes in one trip, compared to just 16 tonnes per truck. The fuel savings are similarly dramatic — inland vessels consume far less diesel per tonne-kilometre than road or rail. “Waterways are not just cheaper,” Reddy noted, “they are cleaner, more predictable, and require far less land acquisition compared to road networks.” A key pillar of the state’s plan is the development of over 50 industrial clusters along these water routes. These are expected to decentralise economic activity away from saturated city cores and bring new jobs and investment to the hinterlands. The model reflects a larger shift in logistics thinking: from centralised, overburdened networks to regional corridors that balance load and optimise last-mile delivery.
In doing so, the government aims to support MSMEs and export-driven sectors like food processing, textiles, and light engineering, which often struggle with high freight costs and patchy last-mile connectivity. “This is about giving every industrial cluster — not just those near highways — a fair shot at accessing national and global markets,” Reddy said. The consultation was also attended by Maritime Board chairman Damacherla Satya, APIWA chairman Sivaprasad, and Infrastructure Secretary Yuvraj. Officials confirmed that the state will offer fast-track environmental clearances and financial incentives to attract private investment in barge services, terminals, and multimodal handling facilities.
The emphasis on private participation reflects both the ambition and realism of the plan. Developing water transport corridors requires not just dredging and infrastructure, but vessels, warehousing, intermodal terminals, and digital logistics systems. To that end, the state is already in talks with potential investors and port developers, while APIWA is working on a single-window clearance framework to ease the investment process. Equally important is integration with road and rail. For water corridors to be truly effective, they must plug into a broader logistics ecosystem. This includes first-mile connectivity for rural producers, and last-mile access to ports, special economic zones (SEZs), and industrial parks. Andhra Pradesh’s coastal advantage — with major ports like Visakhapatnam and Krishnapatnam — further strengthens the case for river-sea linkages that can facilitate coastal cargo and reduce road congestion.
The plan also has deep sustainability implications. By reducing reliance on diesel trucks, the waterway push aligns with India’s net-zero goals and the larger international movement to decarbonise freight. Reduced road traffic also brings down particulate emissions and road wear-and-tear, offering indirect savings to the public exchequer. But there are challenges. Maintenance of river depth, seasonal flow variability, and encroachments near riverbanks all complicate long-term operations. The government has acknowledged these risks and is building hydrological and environmental resilience into project design. Technologies like real-time water level monitoring, adaptive route planning, and low-draft vessel design are part of the planning toolkit.
Beyond freight, there is also interest in exploring passenger services and tourism potential via inland waterways. River cruises, heritage routes, and eco-tourism are already on the table for phase-two discussions, officials said. But for now, the state is laser-focused on getting cargo moving smoothly and at scale. The minister closed the event by underscoring the broader vision: “Inland waterways are not a side show — they are central to our future as an industrial and sustainable economy. Andhra Pradesh will show how rivers can be lifelines not just in history, but in tomorrow’s economy too.”
As planning moves into execution, the success of Andhra Pradesh’s inland waterway strategy could offer a blueprint for other Indian states looking to reimagine their logistics footprint in a low-carbon world.
