An overview of inland water transport

Ever seen barges carrying tons of coal or ferries full of passengers cruising down a river? That’s inland water transportation. Read on for a deeper overview on one of the lesser-known modes of freight transportation.

Inland water transport: An introduction

What are IWTs?

Inland water transport (IWT) is the movement of people and goods on navigable waterways like rivers, canals, lakes, and other inland bodies of water. Navigable waters are categorised based on their size, depth, and the type of vessels they can support.

Major categories include:

Class I: Small rivers and canals suitable for vessels and barges with shallow drafts.

Class II and III: Larger rivers and canals that can accommodate medium-sized vessels.

Class IV to VI: Large rivers and waterways, capable of supporting substantial commercial ships and bulk carriers.

These categories help understand the capacity and capability of different inland waterways to support various types of cargo and vessel sizes.

Who is involved in inland water transportation?

Who uses it: Manufacturers, industries, and businesses dealing with large quantities of bulk goods like coal, iron ore, agricultural products, and construction materials heavily rely on IWT.

Manufacturers and industries often also own the quay facilities needed to load/unload the goods at their sites, while other businesses often rely on the use of third-party terminals/quays to connect the goods from waterway to shore and vice versa.

Who operates it: Government agencies or private companies manage IWTs, depending on the region. This can involve maintaining infrastructure, regulating traffic, and ensuring safety.

Freight services offered in inland water transportation

Container barges: These are designed to carry standard shipping containers, allowing seamless integration with international maritime shipping.

Roll-on/Roll-off (RoRo) services: Ferries or barges equipped with ramps allow vehicles to be driven on and off for transportation across waterways. This is useful for short-distance movement of trucks and trailers.

Intermodal transportation: Inland waterways can be part of an intermodal transportation network, where cargo is transported using a combination of modes (e.g., truck, rail, barge) to reach its final destination.

Lighterage services: It involves transferring cargo between barges and other vessels or land-based transportation at ports or terminals.

Types of commodities transported by inland waterways

Dry bulk: These are loose, unpackaged goods transported in large quantities. This includes construction materials (sand, gravel, crushed stone), minerals (coal, iron ore, bauxite), and agricultural products (corn, wheat, soybeans, rice).

Liquid bulk: These are fluids transported in large volumes, like petroleum products (crude oil, gasoline, diesel fuel) and chemicals (industrial chemicals, liquid fertilisers).

Breakbulk cargo: These are individual pieces of freight that are too large or heavy for containerised shipping but don’t require the total capacity of a barge. Examples include forest products (logs, lumber, pulpwood), machinery (construction equipment, turbines, generators), and steel products (coils, pipes).

Containerised cargo: These goods are packed in standard carrier ocean containers. They often arrive often via ocean liners to the ocean terminals, where they are then loaded onto inland water transport to connect across longer distances to inland terminals.

Why is inland water transport important in the supply chain?

Cost efficiency

Lower infrastructure costs: Compared to building and maintaining roads and railways, inland waterways are generally cheaper to develop and upkeep — needing a terminal / quay side investment mostly.

Bulk transportation: IWT excels at moving large volumes of bulk goods like grains, ores, and construction materials over long distances. This translates to significant cost savings per unit transported.

Environmental benefits

Reduced congestion: By taking bulk goods off roads, IWT helps alleviate traffic congestion on highways and railways, improving overall supply chain efficiency.

Lower emissions: Compared to trucks, barges and other vessels used in IWT produce less air and noise pollution. It is also more fuel-efficient than land vehicles.

Resilience and reliability

Alternative route: IWT provides an alternate solution for transporting goods, which can be crucial during disruptions in land-based transportation systems due to bad weather, accidents, or infrastructure issues.

Enhanced capacity: Inland waterways can transport heavy cargo that may be impractical or too expensive to transport by land. This is especially important for industries like construction and manufacturing.

High/low water situations: IWT will be impacted by either low water (need to lighten the ships to reduced draft) or high water (reduced air draft under bridges, limiting load out of vessels as well). While a low water situation that fully prohibits navigation at a period of time is rare, it can occur with the need of replanning cargo until water levels improve again.

IWT offers a viable alternative to road and rail transport. Although one of the most economical modes of inland transportation, it remains largely under-utilised. Here are some reasons why.

What are the challenges of inland waterways for businesses?

Despite the compelling advantages of inland water transportation (IWT) presents some limitations when integrating it into your supply chain strategy. Here’s a breakdown:

Infrastructure limitations

Many rivers and canals have shallow waterways and may not be deep enough to accommodate large barges, restricting cargo weight. To tackle this:

• Identify available terminal/quay infrastructure that allows vessels to berth.
• Carefully plan routes that utilise deeper sections of waterways and consider using smaller vessels for specific stretches.
• Stay informed about government or industry initiatives about IWTs. Lobbying for infrastructure projects that benefit your business needs can be a proactive approach.

Speed and slow travel

Compared to trucks and aeroplanes, this mode takes longer to deliver goods. To navigate:

• Factor in longer lead times. You can integrate IWTs strategically into your supply chain for non-time-sensitive goods.
• Combine IWT with faster land transport for specific legs of your journey when speed is a concern. This can optimise your delivery timelines.

Accessibility and limited network

IWT is only viable if the origin and destination points have access to navigable waterways and usable terminal/quay infrastructure. So:

• Look for companies with expertise in navigating IWT infrastructure limitations. They can advise on alternative routes, efficient cargo handling at terminals, and potential transshipment options to bridge connectivity gaps.
• Consider strategically located warehouses near waterways and their terminals to act as transhipment points, facilitating the movement of goods between IWT and land-based transportation.

Costs involved in inland water transportation

While these factors may vary as per the region, here’s an overview of the key cost factors:

Transportation costs

Tolls: Some waterways may charge tolls for usage, similar to highways. This can differ depending on the waterway, cargo type, and distance travelled.

Port and terminal fees: Expenses may be associated with using terminals for loading, unloading, and storing cargo.

Fuel: The consumption varies depending on the size and type of vessel, cargo weight, and waterway conditions (current, depth).

Cargo-specific costs

Loading and unloading: The cost of loading and unloading cargo at ports and terminals depends on the type of cargo, handling equipment required, and labour costs.

Storage: The cost of storing cargo at quay side if immediate transload and onforwarding is not possible.

Specialised handling: Certain freight types might require special equipment or packaging procedures, leading to potential overhead costs.

Documentation and permits: Depending on the freight type and specific waterways, extra licences or paperwork might be needed, thus adding to the expenses.

Indirect costs

Intermodal costs: If IWT is integrated with other transportation modes (road, rail) for origin or destination points not directly accessible by waterways, additional costs like transhipment fees and handling charges may be incurred.

Route planning: Depending on the limitations of specific waterways (depth, lock sizes), planning routes that optimise travel time and minimise tolls or congestion can add costs in terms of time and expertise.

Seasonality: Water levels can fluctuate in some regions. During low-water periods, you might need to use smaller vessels or adjust loading capacities, which can impact efficiency and potentially increase costs.

Choosing the right transport: IWT, road, or rail

• Think big, heavy, and far (and it has availability)? IWT wins for bulk goods.
• Need speed and flexibility for shorter hauls (or in a hurry)? Road is your champion.
• Looking for reliable, long-distance hauls (and you’re not in a rush)? Rail takes the gold.

The best-suited transportation mode for your business depends on several factors such as distance, cargo type, fuel prices, infrastructure availability, and specific needs (speed, flexibility).

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