Inland waterways of Pakistan: the untapped potential

Inland waterways (IWs) are globally recognised as one of the most cost-effective and environmentally sustainable modes of transportation. Pakistan has a vast network of rivers and canals; however, the modal split is imbalanced, and the waterways remain untapped despite their cost-efficiency. This insight argues that Pakistan's untapped inland waterways could serve as a complementary third corridor for cost-effective transportation in the long term, beside roads and rails. Pakistan's modal split is heavily imbalanced, with roads carrying over 96 per cent of inland freight, rail carrying only 4 per cent, and waterways carrying 0 per cent. It increases logistics costs and puts pressure on road infrastructure. Pakistan consumes 58.8 million liters of petroleum products daily, with imports accounting for 67 per cent of the trade deficit. Volatile energy prices and environmental commitments make efficient, cleaner freight essential, underscoring the need to explore inland waterways. Despite the Indus River system's navigation potential, having a vast network of rivers and canals, inland water transport (IWT) in Pakistan remains untapped due to an unresolved jurisdictional debate between federal and provincial stakeholders. However, colonial laws like the Canal and Drainage Act of 1873 and the Inland Steam-vessels Act of 1917 could be amended for use. In 2014, the Punjab government established the Inland Water Transport Development Company (IWTDC) as a pilot project. Although it proved the feasibility of a 220 km stretch between Daud Khel and Attock, the pilot project was shelved in 2018 due to the absence of a legal and regulatory framework and a lack of clear financial viability for the provincial budget. The national freight and logistics policy of Pakistan 2020 proposed a three-phase development of IWT. Phase 1 included further work on the pilot project under IWTDC, including the development of an integrated terminal at Daud Khel. Phase 2 included its extension from Daud Khel to Tunsa, and Phase 3 would extend it from Tunsa to Sukkur. Four primary economic efficiencies could drive the adoption of IWs as a third corridor. Firstly, IWs are the most fuel-efficient mode of bulk transport compared to roads and rail. To move 1,500 tons over 200 km, a single waterborne barge consumes only 1,600 litres of fuel, compared to 4,200 litres for three trains and 15,000 liters for 60 trucks. More precisely, barges use 8 to 10 times less fuel than cargo trucks and 3 to 4 times less than railways. Secondly, a 2022 World Bank report suggests that the operational costs of the Punjab IWT pilot project with roads and rails show that IWT's operating costs are also lower than those of the other models. In addition, the cost of establishing waterways is also less than that of roads and rails. For instance, the IWT project in Punjab costs Rs 270 million/km, and maintenance costs are estimated at 2.5 per cent of the investment cost. In comparison, the cost of the 1726km ML1 Railway project is Rs1.89 trillion ($6.68 bn), i.e., Rs1075 million/km, while the cost of highway roads ranges from Rs175 to 600 million. Environmental performance provides another advantage. Inland water vessels emit less carbon dioxide per tonne-kilometre. A heavy goods vehicle (HGV) emits 164 grams of CO2 per tonne-kilometre and a train 48.1 grams, while Barges emit 33.4 grams. Overall, the cost-benefit analysis indicates that the IWs as a third corridor are an economically viable option. The primary benefit arises from reduced transport and logistics costs. Economic viability improves when additional benefits, such as environmental externalities, the development of logistics zones, irrigation efficiency, and flood control measures, are included. Several challenges to implementing integrated IWT at the national level make it non-viable in the short term. Some barrages (Jinnah, Chashma, Guddu, and Kotri) were already built with navigational locks, but upgrading them may cost Rs6.9 billion each. Some barrages, like the Sukkur barrage, lack navigational locks because they were built primarily for irrigation and flood control. There is also a lack of purpose-built terminals, and building one would cost Rs180 million. Dams, on the other hand, also block waterways. There is also a lack of standardised vessels and accessibility to Karachi Port and Port Qasim. Climate change is another major challenge. During winter, reduced river and canal flows hinder navigation. Climate modelling using Long Short-Term Memory (LSTM) networks projects a 17 per cent to 25.6 per cent increase in summer streamflow, potentially increasing the risk of catastrophic flooding and infrastructure damage. Standard navigability for medium-sized craft requires a channel depth of 6 to 10 feet, which is available in many perennial stretches. However, in some waterways, physical obstructions, such as outcropping rocks and sandbars, narrow the channel. Sediment buildup has reduced flood-handling capacity by 17.75 per cent over 24 years. These challenges require proper dredging to make waterways viable and sustainable during flood seasons. IWs are viable and cost-effective in the long term if pursued gradually through phased pilot projects on commercially viable stretches, drawing a lesson from Indian policy. However, it would have limited utility due to the existing modal split, infrastructure and geographical factors. Pakistan needs a unified national transport framework that integrates waterways with roads, railways, aviation and maritime transport under a unified Ministry of Transport and Communication. IWs are not merely a transport alternative but a macroeconomic necessity. The national freight and logistics policy is a step in the right direction. The increasing energy costs, economic potential and environmental needs necessitate its continuation.