Dr. Saumitra Mohan, IAS

 

 Driving Sustainable Growth in the Logistics Sector

*Dr. Saumitra Mohan

West Bengal is a state uniquely positioned because of its offering many advantages critical to the logistics sector. It is the sixth-largest economy in India, with a Gross State Domestic Product (GSDP) of ₹17 lakh crore. Growing at an impressive annual rate of 15.24%, West Bengal is one of the fastest growing states in the country. With an estimated population of over 100 million, the state represents both a massive consumption base and an ever-growing industrial hub.

What truly sets West Bengal apart, however, is its strategic geographic advantage. Positioned as the gateway to India’s Northeast and land-locked neighbors like Bhutan and Nepal, it also acts as India’s vital conduit to Southeast Asia. This strategic geographic significance makes West Bengal the ideal destination for investments in the logistics sector.

The state’s logistics sector is poised for an exponential growth, with the current market size estimated at USD 20 billion. Our key infrastructures includes strategically-located seaports in the form of the Syama Prasad Mookerjee Port (erstwhile Kolkata Port Trust) and Haldia Dock Complex. Together, they serve as major gateways for cargo, offering robust multi-modal connectivity. Together, these ports handle over 65 million metric tons of cargo annually. The proposed Tajpur Deep-Sea Port is likely to be a game-changer that will accommodate large vessels and significantly reduce logistics costs.

Extensive inland waterways provide immense opportunities for development of tourism, passenger and cargo services. With 4,593 kilometers of navigable waterways, including the National Waterway-1 and the Indo-Bangladesh Protocol Route, we are fostering greener and more efficient cargo transport systems. These waterways link us not only to Northeast India, but also to Southeast Asia and beyond, providing a cost-effective alternative to road and rail.

Under the West Bengal Inland Water Transport, Logistics and Spatial Development Project, the state is exploring ways and means to operationalise the RoRo (Roll-on, Roll-off) service on NW-1, especially in and around the Kolkata metropolitan area. The initiative, if successful, is likely to reduce travel time for cargo and passenger movement while also significantly reduce the carbon footprints as a result of vehicles having to travel lesser distance. The state has already operationalised RoRo and RoPax services in the Sundarbans and Gangasagar areas. There are many private players who are also bracing to introduce RoRo services along the NW-1, not to speak of Inland Waterways Authority of India (IWAI) similarly conducting studies to this effect.

Better air connectivity is an advantage that drives the logistics sector in the state. Kolkata Airport, the largest freight facility in eastern India, is a critical hub for high-value and perishable goods. Recent enhancements, such as express courier terminals and the Centre for Perishable Cargo, strengthen its capabilities. The airports at Andal, Bagdogra and Cochbehar add to the available options and could be further leveraged for seamless logistics movement across the state using its airways. The state is further exploring the possibilities at such other locations as Malda, Balurghat, Charra (Purulia), Kalaikunda and Hasimara.

West Bengal’s extensive road and rail network is yet another infrastructural advantage that catalyses the logistics sector. Our road network spans over 100,000 kilometers, with 33 national highways connecting the state to the neighboring regions. Additionally, 1,409 kilometers of the Eastern Dedicated Freight Corridor run through West Bengal, connecting Dankuni to Uttar Pradesh and beyond. This must be leveraged to the advantage of smooth cargo movement from West Bengal to the other states.

Extensive warehousing facilities including better inventory management practices and cold chain networks, as existing in the state, provide the enabling springboard for the sector. It is notable that West Bengal leads eastern India in warehousing capacity, with hubs like Dankuni and NH-16 witnessing a surge in demand. Modern facilities cater to sectors like e-commerce, FMCG and pharmaceuticals, meeting the needs of a fast-evolving market.

Now, what makes West Bengal a preferred destination for logistics investment? These three core drivers include a conducive industrial ecosystem, well-endowed economic corridors and and strategic geographic location. West Bengal is home to a thriving industrial base, from MSMEs to large-scale enterprises. The state’s Micro, Small, and Medium Enterprises (MSME) sector boasts over 42 lakh units, contributing 7.2% to India’s total MSMEs. Our industrial clusters span sectors like textiles, leather, chemicals, and hi-tech electronics, driving demand for logistics services.

The state serves as the terminus for several mega-corridors, including the Amritsar-Kolkata Industrial Corridor and the East Coast Economic Corridor. These corridors promise seamless connectivity to global value chains and open doors for exports and imports, enhancing the state’s logistics ecosystem. West Bengal’s connectivity with Southeast Asia through projects like the Kaladan Multimodal Transit Transport Project and the Trilateral Highway (India-Myanmar-Thailand) positions us as a strategic partner for India’s integration into global value chains.

The Government of West Bengal is committed to creating an investor-friendly environment. The West Bengal Logistics Policy, 2023 embodies this vision. Some of the key features include industry status to the logistics sector, development of multi-modal logistics parks and freight villages, dedicated land banks for logistics infrastructure, streamlined approvals through an integrated single-window system, development of green logistics and the adoption of digital technologies and the existence of the West Bengal Logistics Centre of Excellence for fostering innovation and skill development.

Additionally, initiatives like the West Bengal Apprenticeship Promotion Scheme and the Utkarsh Bangla Scheme, as conceived and stewarded by the Department of Technical Education, Training and Skill Development, are ensuring a ready-made pool of skilled workforce tailored to the sector’s needs. Premier institutions such as IIT Kharagpur and IIM Calcutta complement this effort by nurturing managerial talent and innovation. Industries and businesses are availing the opportunity for sector-specific customized capacity building of human resources as required for spurring the economic and commercial activities in repective sector.

As global supply chains shift toward greener practices, West Bengal is leading the charge with initiatives in green logistics. From leveraging inland waterways to reduce carbon footprints to integrating renewable energy in logistics parks, sustainability is at the heart of our strategy. Furthermore, the “Blue Economy”—focusing on fisheries, maritime tourism, and coastal trade—is further set to unlock significant opportunities.

The rise of e-commerce has also transformed logistics. Companies like Amazon and Flipkart are investing heavily in the state, creating a ripple effect in warehousing and last-mile delivery solutions. Quick commerce, driven by demand for shorter-delivery times, is further fueling the need for modern infrastructure and technological innovation.

West Bengal’s logistics story is one of opportunity and transformation. The state’s strategic location, growing industrial base, skilled workforce, and investor-friendly policies make it the ideal destination for those looking to make impactful investments. From infrastructure development to operational innovation, the opportunities here are vast and varied.

Whether it is developing multi-modal logistics parks, investing in cold chain solutions, or pioneering green logistics practices, West Bengal offers a platform for sustainable and profitable ventures. Leveraging all these advantages, the State has already created a logistics ecosystem that not only powers economic growth, but also enhances the quality of life for millions.West Bengal’s strong infrastructures, ingenuous policies, facilitatory ecosystem and a strong commitment provide the enabling ambience for everyone to be part of this fascinating growth story.

 Developing Inland Waterway Ecosystem in West Bengal

*Dr. Saumitra Mohan

Being a state with a great network of rivers and expansive water bodies, West Bengal boasts of one of the longest navigable waterway networks in the country, with approximately 4,593 kilometers of rivers and canals, of which 97% are navigable. This rich network of waterways—anchored by rivers like the Ganges, and their tributaries including Damodar, Bhagirathi,and Hooghly —has historically played a pivotal role in trade, connectivity, and regional development.

As we move forward, our inland waterway ecosystem is not only helping us strengthen West Bengal’s economy, but is also contributing significantly to India's sustainable development goals. In recent times, major strides have been made in the public and private sector in transforming the inland water scenario in the state.

West Bengal’s waterways present an immense opportunity for economic and environmental progress. Be it strengthening and intensifying regional connectivity, promoting transformative solutions driving sustainable growth in the sector, encouraging tourism or opening avenues for livelihoods, inland waterways in West Bengal is increasingly becoming one of the major drivers of regional economic growth.

West Bengal’s strategic location places it at the gateway to the Northeast, Bhutan, Nepal, and Bangladesh, making it a vital hub for the sub-regional trade. Our waterways, such as National Waterway-1 and the Indo-Bangladesh Protocol Route, facilitate seamless cargo movement from Kolkata to the Northeast and beyond. Projects like the Kaladan Multimodal Transit Transport Project are unlocking alternative trade routes to Southeast Asia. Such projects are not just logistical breakthroughs, but also a testament to how inland waterways can bridge geographies, create new trade corridors and change lives. 

Inland waterways, as we know, are one of the most environmentally-sustainable modes of transport. They emit 25% to 60% less CO2 per tonne-kilometer than road or rail. Initiatives aimed at encouraging electric ferry services and cargo vessels harmonize the priorities of economic growth with the imperatives of environment protection. The fact that the cost of transporting cargo via waterways is significantly lower, makes it an economically-commercially-viable alternative for businesses. For instance, transporting one tonne of cargo over one kilometer costs ₹1.36 via water, compared to ₹2.50 by rail and ₹3.50 by road. This is why, there is a push across the country to leverage these advantages. Recntly, scheduled services of cargo vessels were started from Kolkata to Patna, Varanasi and Pandu in Assam.

Beyond cargo and passenger movement, our waterways provide huge opportunities for tourism. West Bengal’s rich history, as visible from the magnificent monuments lining its riparian coasts, has always attracted tourists from across the world. The Sundarbans, a UNESCO World Heritage Site, holds immense potential for eco-tourism and cultural tourism. Leveraging inland waterways for tourism can create jobs, foster local entrepreneurship and promote West Bengal’s vibrant cultural heritage. 

It is this allure of experiencing history on mystic Ganges that agencies like Antara Cruises, Eastern Navigation, Vivada and many more have been capitalizing on, thereby also creating huge multiplier effects in the process, not to speak of creating hundreds of thousands of employment for the people in the state. West Bengal’s river tourism circuits, like the Ramakrishna-Sarada-Vivekananda circuit, Sundarbans and routes along the Hooghly River, offer enormous potential for investors in cruise tourism and hospitality. Private cruise operators are already leveraging these advantages, and the sector is ready for a quantum growth. It is not without reason that world’s longest river cruise ‘Ganga Vilaas’ is operated from Kolkata with many more such ventures being on the cards. The State Government, during the latest edition of Bengal Global Business Summit, received a proposal for a private sector investment of Rs 800 crores from Antara Cruises for further deepening and promoting cruise tourism in the state. A conservative estimation suggests an expected investment (both private and public) of over 3000 crores rupees in inland waterways which is already underway.

West Bengal offers a robust foundation by way of its strong infrastructures to strengthen the inland waterways ecosystem. West Bengal has built and renovated 231 jetties across the state. The upcoming Tajpur deep-sea port and Kolkata’s inland port terminals are key infrastructural assets that could catalyze trade and logistics in West Bengal. The state is already visualizing ways to equip them with modern facilities such as passenger terminals, drinking water, public conveniences, CCTV surveillance, smart gate and ticketing systems, a strong search and rescue architecture, safety and security of passengers and cargo, conception of a refuelling jetty, Roll-on Roll-off services and urban upgradation around the jetties.

The West Bengal Transport Department has been collaborating with different institutions to develop skill upgradation programmes and modules in maritime engineering, logistics, and sustainability. The state is also investing in IT modernization to enhance vessel management, navigation safety, and customer engagement. The details of training and capacity building of the human resources through reputed institutions like National Inland Navigation Institute, Jadavpur University, IIEST, Shibpur and IIT, Kharagpur are also being worked out.

To ensure greener and more efficient transport, West Bengal has already placed orders with the Garden Reach Shipbuilders and Engineers for procuring more and more hybrid-electric vessels under its West Bengal Inland Water Transport Logistics and Spatial Development Project (WBIWTLSDP). The state’s passenger vessel fleet, as operated by the West Bengal Transport Corporation, now includes advanced Ro-Ro vessels and fully electric ferries like "DHEU," a first-of-its kind zero-emission vessel that has set a new standard for sustainable inland water transport.

West Bengal has its eyes set on multi-modal integration of different modes of transportation, linking waterways to railways, highways and airways. This holistic approach is a cinch to not only help reduce congestion on roads, but also improve last-mile connectivity, boosting regional trade and tourism. Better coordination among all the stakeholders including policy makers and private entrepreneurs could bring in cascading benefits for the state’s economy.

As we envision a future shaped by efficient, sustainable inland waterways, there is a need to build wide-ranging partnerships for better outcomes, leveraging the comparative commercial advantages of the inland waterway sector. It is here that different stakeholders including the entrepreneurs need to come forward to collaborate on investible projects, including the development of smart jetties, Ro-Ro services, and battery-operated electric ferry systems.

The West Bengal Maritime Board Act and the West Bengal Logistics Policy, 2023 have created an investor-friendly framework, providing fiscal incentives, land banks and single-window clearance mechanisms. The single-window clearance for investment proposals through the ‘Shilpa Saathi’ portal makes investment in the state further attractive.

However, the challenge lies in leveraging these strategic advantages that might drive sustainable growth in developing inland waterway ecosystem in the state. The future of West Bengal’s inland waterways is bright and transformative. By investing in this sector, one not only unlocks the humongous business opportunities in the sector, but also contributes to a greener and more sustainable tomorrow. 

With right policy mixes and suitable interventions, West Bengal also has the potential to become the logistics and connectivity hub in South and Southeast Asia. This will not only enhance the quality of life for millions through better connectivity, reduced emissions, and new economic opportunities, but also build an inland waterway ecosystem that is not only efficient and sustainable, but also inclusive and forward-looking.