How to Leverage Inland Waterways for Efficient Logistics in Bangladesh

Bangladesh, often referred to as the “Land of Rivers,” boasts a vast inland waterway network that stretches over 24,000 km during the monsoon and around 6,000 km year-round. This rich aquatic infrastructure offers a unique opportunity to transform logistics and freight movement in a country where overburdened road networks and rising fuel costs challenge traditional supply chains.

With increased attention to sustainability, infrastructure development, and trade competitiveness, leveraging inland waterways for logistics is no longer a futuristic ambition but a present-day necessity. In this article, we explore the strategic benefits, challenges, and ways businesses can capitalize on this underutilized transport mode.

The Advantages of Inland Waterways in Bangladesh

1. Lower Transportation Costs

Compared to road and rail, inland water transport (IWT) is significantly cheaper for bulk goods. According to the World Bank, the per-ton-kilometer cost of transporting goods via river is 60% lower than by road. For exporters, this means improved margins and increased global competitiveness.

2. Decongesting Roads and Ports

Dhaka and Chittagong, two of the country’s major trade hubs, suffer from chronic congestion. Waterways offer an alternative route that helps bypass crowded urban areas and landlocked logistics bottlenecks, ultimately reducing lead times for time-sensitive deliveries.

3. Environmental Sustainability

Water transport consumes less fuel per ton of cargo, leading to lower emissions. With global supply chains increasingly favoring green logistics, using IWT aligns well with ESG (Environmental, Social, Governance) priorities. Bangladesh can reduce its logistics sector’s carbon footprint by encouraging wider use of eco-friendly river routes.

4. Deep Penetration into Rural and Remote Areas

Inland waterways connect remote regions like Barisal, Chandpur, and Khulna to urban trade hubs. Businesses sourcing agricultural or handicraft goods from rural Bangladesh can use IWT to integrate these communities more directly into national and international markets.

Strategic Inland Waterway Routes in Bangladesh

The government, along with international development partners, has identified several high-potential water routes that could drive trade growth:

• Dhaka–Chittagong via Narayanganj: A key commercial artery linking the capital to the port.

• Mongla–Khulna–Barisal: Useful for connecting southwestern Bangladesh to the Mongla seaport.

• Dhaka–Ashuganj–Karimganj (India): A transboundary trade route covered under the Bangladesh-India Protocol on Inland Water Transit and Trade.

These routes are part of the broader Bangladesh Regional Connectivity Project, which aims to modernize IWT infrastructure and make logistics more regionally integrated.

How to Leverage Inland Waterways for Your Business

1. Partner with IWT Service Providers

Work with experienced logistics agents who specialize in multimodal and river freight. Bangladesh-Agent.com helps businesses identify reliable barge operators, manage customs clearances, and coordinate inland port schedules.

2. Use Containerized River Transport

Thanks to recent developments at river ports like Pangaon Inland Container Terminal (PICT), companies can now ship containerized goods through river routes, ensuring better cargo safety and traceability.

3. Adopt a Multimodal Transport Strategy

IWT should not function in isolation. Combining river freight with trucking and rail ensures last-mile delivery and flexibility. For example, businesses can move goods from factories in Gazipur to PICT by truck, then ship to Chittagong port by river.

4. Invest in Digital Logistics Platforms

Real-time tracking, port scheduling, and route optimization are crucial for IWT efficiency. Leveraging logistics tech or working with tech-savvy agents can enhance visibility and coordination.

Challenges and Considerations

Despite the benefits, businesses should be aware of the following hurdles:

• Seasonal Fluctuations: Navigation can be hampered in dry seasons due to low water levels.

• Port Infrastructure: Not all river ports have adequate loading/unloading facilities or container handling systems.

• Lack of Awareness: Many SMEs still view IWT as informal or unreliable.

These challenges are being addressed through government and donor-backed modernization efforts, but private sector involvement is crucial for widespread adoption.

Policy Support and Future Outlook

The Government of Bangladesh, supported by organizations like the World Bank and ADB, is investing in dredging, river port upgrades, and IWT safety protocols. According to the Ministry of Shipping, 53 new inland water routes have been declared navigable, with plans to revive 100 more by 2030.

As Bangladesh pushes towards Vision 2041—a strategy to become a high-income country—the modernization of its logistics sector, including inland water transport, will play a pivotal role.

Conclusion

Inland waterways in Bangladesh represent an untapped goldmine for businesses looking to improve logistics efficiency, lower costs, and meet sustainability goals. As infrastructure improves and awareness grows, early adopters of this transport mode stand to gain a competitive edge in both domestic and export markets.

If your business is looking to leverage inland waterways or expand logistics operations in Bangladesh, Bangladesh-Agent.com can connect you with the right partners, from river freight specialists to inland port agents.