The Inland Waterways Authority of India (IWAI) officially transferred the operational reins of the Haldia Multi-Modal Terminal (MMT) in West Bengal to IRC Natural Resources last week.
This move is part of the Centre’s push to lift cargo movement and logistics infrastructure through Public Private Partnerships (PPP).
Built with financial and technical assistance from the World Bank, the Haldia terminal has a handling capacity of 3.08 million metric tonnes per annum (MMTPA) and was inaugurated by Prime Minister Narendra Modi on January 13, 2023.
Direct NH connectivity
The terminal’s strategic location provides direct connectivity to National Highway 41, and plans for future rail connectivity are set to elevate its role as an integrated multimodal logistics hub, according to the shipping ministry.
Under the PPP model, the IWAI adopted an Equip, Operate, and Transfer (EOT) arrangement, selecting IRC Natural Resources as the operator through a competitive bidding process. The concession agreement grants IRC a 10-year contract—extendable by another five years—for operation and maintenance, with a royalty payment of ₹105.03 per metric tonne of cargo handled, which will be paid to IWAI.
The terminal’s transfer and forthcoming operationalisation are expected to dramatically increase cargo movement across National Waterway-1 (Ganga–Bhagirathi–Hooghly river system), which spans Uttar Pradesh, Bihar, Jharkhand, and West Bengal. This enhancement brings a cost-effective, environmentally sustainable, and notably faster alternative for transporting goods, especially to the North Eastern states and neighbouring Bangladesh.
Haldia terminal, the first of many
The Haldia MMT is among the five major terminals developed under the Jal Marg Vikas Project (JMVP), with complementary infrastructure including fairway maintenance, construction of other multimodal and intermodal terminals, modern navigational locks, and the installation of over 60 jetties.
The broader vision is to strengthen India’s riverine transport, offering benefits to river communities and facilitating the broad shift from road and rail to water-based logistics.
New revenue stream for IWAI
The estimated Rs 105.03 per metric tonne royalty ensures steady income for infrastructure reinvestment. Moreover, enhanced throughput at Haldia will boost cost-effective, high-volume cargo traffic, reducing logistics expenses for businesses servicing North Eastern India and Bangladesh.
The PPP Model ensures private sector expertise under a monitored concession. And the best part? Pivoting to inland waterway transport directly lowers carbon emissions and congestion compared to traditional road and rail movement.
