Bangladesh is a riverine country. A dense network of rivers, canals, creeks cover almost all parts of the country. The system provides a natural infrastructure for waterways. More than half the country’s land area and three quarters of commercial activities performs within 10 km to navigable waterways in all seasons. The role of IWT (Inland Water Transport) in the national economy, particularly in terms of transportation and employment is highly significant. In 1991, 16% of all passengers and 35% of all goods transports by IWT.

The relative modal share of IWT decreases over the past years largely due to development of road transport network. However, both passenger and cargo volumes carried by IWT is likely to increase in absolute terms in the coming years. Such increase largely depends on GDP growth and mechanization of the country boats. IWT currently employs more than 3 million people, mostly unskilled laborers. Growth of the sub-sector has been constrained by sheer negligence; and also, shrinking of waterways due to both siltation and reduction in the amount of water available during the dry season.