Inland Waterways in Bangladesh: A Hidden Gem for Cargo Movement

When we think of modern cargo movement, the focus often shifts to roadways, railways, and air freight. Yet, in the case of Bangladesh—a riverine nation with over 24,000 km of waterways—inland water transport (IWT) remains an underutilized treasure. For global companies and logistics planners, the country’s extensive inland waterways network presents a cost-effective, sustainable, and scalable cargo solution.

In this blog, we explore how Bangladesh’s inland waterways are quietly transforming cargo logistics, what’s driving this shift, and how global businesses can tap into this underexplored resource.

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Why Inland Waterways Matter in Bangladesh

Bangladesh’s geography is shaped by three major rivers—the Ganges, Brahmaputra, and Meghna—along with their tributaries. These waterways naturally connect inland production zones to coastal ports and neighboring India.

According to the Bangladesh Inland Water Transport Authority (BIWTA), more than 6,000 km of rivers are navigable year-round, with another 14,000 km navigable during the monsoon season.

Key Benefits of Inland Water Transport:

• Lower transportation costs compared to road and rail

• Reduced carbon emissions, supporting green supply chains

• Less traffic congestion in urban centers

• Ease of moving bulky cargo (e.g., cement, coal, construction materials)

Strategic Role in Bangladesh’s Cargo Ecosystem

Inland waterways play a vital role in domestic and cross-border logistics. Here’s how:

1. Feeder Services to Seaports

Cargo can move from production centers in Khulna, Narayanganj, and Barisal to Chattogram and Mongla ports via river routes. This reduces pressure on road transport, lowers fuel costs, and shortens delivery times.

🔗 Learn more: Top Ports in Bangladesh and Their Strategic Importance

2. Cross-Border Trade with India

Under the India-Bangladesh Protocol on Inland Water Transit and Trade (PIWTT), designated river routes allow cargo movement between both countries. The Dhaka-Kolkata and Narayanganj-Kolkata river routes are already in operation, with increasing volumes in bulk cargo and container transport.

📌 For more, visit the Ministry of Shipping Bangladesh.

Government Push for Waterway Development

To capitalize on this natural infrastructure, the government has launched multiple initiatives:

💡 Bangladesh Inland Water Transport Master Plan (2020–2040)

• Funded in part by the World Bank, this roadmap aims to modernize ports, improve navigability, and develop inland container terminals (ICTs).

🛥️ Ongoing Projects Include:

• Dredging of key river routes (e.g., Ashuganj–Zokiganj, Mongla–Ghashiakhali)

• ICT development in Pangaon and Ashuganj

• Public-private partnerships for fleet modernization and cargo handling equipment

These efforts aim to shift up to 30% of Bangladesh’s cargo onto waterways by 2040.

🔗 Resource: World Bank Report on Inland Water Transport in Bangladesh

Emerging Hubs: Pangaon, Ashuganj & Beyond

🏗️ Pangaon Inland Container Terminal (ICT)

Located on the Buriganga River near Dhaka, this terminal serves as a vital inland port for container traffic, directly linked to Chattogram Port via river. It allows container movement without relying on road transport, reducing delivery times and congestion.

📦 Read more: Bangladesh’s Inland Container Terminals: Logistics Game Changers

🛳️ Ashuganj Port

Serving as a transshipment hub for India’s northeastern states, this port enables India-Bangladesh multimodal trade and facilitates easy movement of project cargo, fuel, and consumer goods.

Private Sector Participation & Global Interest

Private logistics companies and shipping lines are increasingly investing in inland water transport:

• Berger Paints, LafargeHolcim, and Bashundhara Group use barge services for bulk materials

• India’s Inland Waterways Authority partners with Bangladeshi firms for cross-border logistics

• International development agencies are funding green vessels and digital tracking systems

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Challenges That Still Need Addressing

While promising, inland water transport in Bangladesh still faces several hurdles:

• Seasonal navigability due to siltation in dry seasons

• Limited cargo handling infrastructure in rural ports

• Bureaucratic delays in customs and port clearances

• Safety concerns with older vessels and lack of GPS navigation

However, the ongoing investment pipeline shows strong political will and donor support to resolve these issues over the next decade.

Inland Waterways vs. Road and Rail: A Cost Comparison

(Source: World Bank, BIWTA)

Clearly, inland waterways are the most cost-effective and eco-friendly option, especially for heavy or bulk cargo.

How Global Companies Can Leverage IWT in Bangladesh

If you’re a foreign company looking to move goods in or through Bangladesh, here’s how to get started:

1. Engage local IWT logistics agents who know the routes, vessel owners, and port requirements

2. Choose locations with access to navigable river ports like Narayanganj, Barisal, or Khulna

3. Use multimodal logistics models that combine IWT with road or rail for last-mile delivery

4. Explore cross-border river routes for trade with India and beyond

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Conclusion: A Logistics Opportunity Hiding in Plain Sight

Inland waterways in Bangladesh are more than just a legacy of its geography—they are becoming strategic economic corridors for domestic and regional trade. With rising investments, digitization, and growing cross-border partnerships, the time is ripe for global businesses to integrate river transport into their logistics strategies.

Whether you’re moving raw materials, consumer goods, or industrial equipment, Bangladesh’s rivers offer a smoother, greener, and cheaper route to your destination.

Useful Resources

• Bangladesh Inland Water Transport Authority (BIWTA)

• Ministry of Shipping Bangladesh

• World Bank Water Transport Projects in Bangladesh

• Bangladesh-Agent.com – Inland Logistics Solutions