Amazon India will Transport Packages via India's Rivers and Backwaters

By Consultants Review Team Wednesday, 22 November 2023

Amazon India and the state-run Inland Waterways Authority of India (IWAI) have reached an agreement under which the e-commerce company will transport customer shipments over inland waterways. Amazon India, which would be the country's first e-commerce company to use inland water transport, stated that it is committed to improving the country's transport infrastructure.

"Our focus is on increasing cargo movement through river systems, which is a more sustainable and economical mode of transport," said Sarbananda Sonowal, minister for ports, shipping, and waterways, who oversees IWAI. "This initiative is a reflection of the importance of sustainable logistics solutions in India's rapidly expanding e-commerce sector."

According to Amazon India, inland waterways conveyance would enable faster, more sustainable, and more reliable delivery of customer packages while also expanding vendors' reach.

"This will open up new possibilities for all e-commerce companies to leverage the country's extensive inland waterways," said Abhinav Singh, vice-president, operations, Amazon India. "We seek to harness the potential of the country's rivers, canals, and other water bodies to enhance logistics and transportation efficiency for the Indian e-commerce industry at large."

Amazon India and IWAI will collaborate to construct an inland canal network for freight shipping. Amazon India will conduct a pilot run on the Patna-Kolkata waterways with the assistance of IWAI and its carriers.

Amazon stated that this program is a continuation of the company's commitment to continuously developing capacity to meet rising consumer demand. The goal is also to work with government officials to develop mutually beneficial projects for the e-commerce business.

According to a Redseer Strategy Consultants analysis, India's e-commerce business is set to increase fivefold, from $59 billion in 2022 to an anticipated $300 billion by 2030, driven by value-seeking customers.

The survey highlights the growing popularity of e-commerce in Tier 2 and beyond cities. This, together with an increasing number of mass consumers and the rise of 3PL (third-party logistics) serviceability, is catalyzing cargo quantities. As a result, these volumes are expected to climb faster than GMV growth.

Amazon's main cross-border logistics program, SEND, was recently expanded to include a hassle-free ocean freight logistics solution. This was accomplished at competitive rates and with end-to-end traceability. Exporters can better plan their inventories as a result of this. SEND has been providing air carrier services for small parcel delivery for over a year. With SEND, Indian exporters can access cross-border logistics services from a variety of third-party service providers spanning land, sea, and air. They can ship their goods to Amazon fulfillment centers in the United States from here.SEND was established in 2022, and thousands of exporters have already benefited from it.


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