In an industry-first move, Amazon India has forged a significant partnership with the Inland Waterways Authority of India (IWAI), operating under the Ministry of Ports, Shipping, and Waterways. The collaboration entails the signing of a memorandum of understanding (MoU) to pioneer the transportation of customer packages through inland waterways.
According to the memorandum of understanding (MoU), Amazon India and IWAI are set to collaborate on facilitating the movement of containerized cargo and establishing a network for utilizing inland waterways in cargo transportation. This initiative, outlined in a blog post on Wednesday, signifies Amazon’s foray into exploring inland waterways as an integral component of its supply chain.
In collaboration with IWAI and its carriers, Amazon is gearing up to launch a pilot run along the Patna to Kolkata waterway, specifically on National Waterway 1. Government statistics reveal that the country boasts 111 designated national inland waterways, covering approximately 20,275.5 km and facilitating the transportation of nearly 55 million tonnes of cargo each year.
Commenting on the development, minister of ports, shipping and waterways Sarbananda Sonowal said, “This MoU with Amazon India marks a significant step towards harnessing the potential of India’s inland water transport. Our focus is on increasing cargo movement through river systems, which is a more sustainable and economical mode of transport. I congratulate Amazon India on their endeavour to collaborate with IWAI to create a waterways transportation solution.”
Coincidentally, this development occurs almost a year subsequent to the introduction of Amazon Air, the air cargo network by the US-based ecommerce giant, in India. Amazon India maximizes the entire cargo capacity of a Boeing 737-800 aircraft to enhance the speed of deliveries to its customer base.
Speaking on the waterways initiative, Abhinav Singh, the VP of operations at Amazon India, said, “This MoU between Amazon India and the IWAI is poised to develop a transformative offering that will open up new possibilities for all ecommerce companies to leverage the country’s extensive inland waterways.”
Singh emphasized Amazon’s steadfast dedication to its worldwide mission of revolutionizing the future of logistics. The company is determined to leverage the untapped potential of India’s rivers, canals, and other water bodies to elevate the efficiency of logistics and transportation within the Indian ecommerce industry.
By integrating inland waterways into its operations, the prominent ecommerce player has established an extensive logistics network across India, encompassing land, air, and water transport. Additionally, Amazon is actively pursuing the expansion of its export capabilities from India. Media reports suggest that the ecommerce giant aims to achieve exports totaling $20 billion from India by the year 2025.
