From Pilgrimage to Progress: Varanasi’s Rise as a Logistics Power Center

Varanasi, long revered as the spiritual capital of India, is now quietly but confidently stepping into a new role—emerging as a strategic logistics hub. Recent developments, including the much-anticipated Multi-Modal Logistics Park (MMLP), have placed the ancient city on the modern logistics map, prompting us to ask: Can a city known for temples, tradition, and timeless rituals also lead the charge in supply chain innovation?

The answer is increasingly clear. “From the Multi-Modal Terminal on the Ganges to the Eastern Dedicated Freight Corridor and the forthcoming MMLP, Varanasi is being woven into the fabric of national and international logistics networks. In this month’s regional spotlight, we explore how the city’s infrastructure renaissance is positioning it as a critical node in India’s multimodal logistics landscape.

Banaras: Legacy, Spirituality, and Emerging Potential

Often described as the oldest living city in the world, Varanasi—also known as Banaras—is synonymous with cultural richness and spiritual depth. Nestled on the banks of the Ganges, its daily rhythm flows with temple bells, chants, and sacred rituals. Yet behind this spiritual tapestry lies a centuries-old legacy of commerce.

Banaras has long been a hub for artisans and traders, famous for its handwoven silk, brassware, and wooden crafts. Historically part of the Silk Route, it catered to markets in Patna, Lucknow, and Kolkata. However, for decades, outdated infrastructure and lack of multimodal connectivity limited the city’s broader economic potential.

A City at the Crossroads

Despite its commerce-friendly lineage, Varanasi’s logistics story was one of missed opportunities. High logistics costs, congested roads, and insufficient infrastructure made other cities more attractive for trade. The Ganges, once a lifeline for goods, had become an underused asset due to siltation, seasonal fluctuations, and underinvestment. While the potential was undeniable, it lacked the push to be realized.

That push came in the late 2010s, as the government prioritized inland waterways, freight corridors, and multimodal integration. It marked the beginning of Varanasi’s logistics awakening.

Logistics Renaissance: Projects Powering Change

The turning point came with the Jal Marg Vikas Project (JMVP) under the Inland Waterways Authority of India (IWAI), which sought to modernize National Waterway-1 (NW-1). The inauguration of the Varanasi Multi-Modal Terminal in 2018 signaled a new era. Situated strategically on the Ganges, this terminal established a critical link between water, road, and rail transport.

While early operations focused on bulk cargo—coal, fly ash, and construction materials—navigational enhancements and dredging works soon followed to facilitate year-round movement for larger vessels.

LC Trivedi, Director at Verkko Group and former General Manager of East Central Railway, aptly remarked:

“Varanasi is strategically located along NW-1, a vital inland water transport corridor. With direct connectivity to Kolkata-Haldia Port, it reduces dependency on congested roads and offers a sustainable, cost-effective solution for bulk transport. The integration of this inland water terminal with road and rail systems creates a seamless multimodal logistics framework.”

Snapshot: Key Infrastructure Highlights

• National Waterway-1 (NW-1): Declared in 1986, spans 1,390 km from Haldia to Prayagraj, connecting major cities including Kolkata, Patna, and Varanasi.

• Jal Marg Vikas Project (JMVP): INR 5,369 crore initiative, supported by the World Bank and Indian government, to enhance NW-1 capacity for 1,500–2,000 DWT vessels.

• Varanasi Terminal Components:

  • Multimodal terminal with integrated rail-road connectivity

  • Fairway maintenance (target depth: 2.2–3 meters)

  • Channel marking and River Information Systems (RIS)

  • 15 planned community jetties in Uttar Pradesh

• Operational Status: The Prayagraj-Haldia (1,100 km) stretch is fully operational for cargo and passengers, with a 152.75% cargo volume increase in FY 2023-24.

Multimodal Synergy and Freight Corridors

Beyond waterways, the convergence of National Highways NH-2 and NH-7, alongside railway connectivity, gives Varanasi a critical multimodal advantage. The upcoming Eastern Dedicated Freight Corridor (EDFC), fully operational by late 2023, promises to further amplify cargo volumes and reduce transit times.

Vijay Kumar, Chairman of IWAI, highlighted this benefit:

“The MMT at Varanasi stands at a multimodal crossroads, connecting road, rail, and river. With Babatpur airport just 30 km away, it adds air cargo capability. A single barge can replace 125 trucks—significantly cutting costs and emissions. This scale efficiency is drawing industries to adopt Varanasi as a logistics distribution node.”

Varanasi-Kolkata Expressway: Bharatmala’s Strategic Leap

Another major milestone was the development of the Varanasi-Kolkata Expressway (NH-319B) under the Bharatmala Pariyojana between 2020 and 2022. This expressway enhanced regional mobility and connected industrial clusters more efficiently, ensuring smoother flow of goods to and from eastern India.

CJ Darcl’s Perspective: Building a Future-Ready India

At CJ Darcl, the unfolding logistics evolution in Varanasi is not just an infrastructure milestone—it’s a vision-aligned transformation.

“The Varanasi MMLP is a strategic enabler in realizing the Government’s Viksit Bharat vision. We see it powering inclusive, sustainable, and future-ready growth by integrating world-class logistics into the heart of India’s spiritual and cultural geography.”

– Nitesh Agarwal, President, CJ Darcl Logistics

Conclusion: The Spiritual City Goes Multimodal

Varanasi is redefining its identity. While the city continues to be a sanctuary for seekers and scholars, it is also emerging as a beacon of logistics innovation. With integrated transport systems, growing cargo movement, and strategic location on the Ganga, it’s no longer just a city of faith—it’s a city of forward motion.

As logistics stakeholders and policy-makers invest in multimodal synergy, Varanasi is set to become not only a symbol of India’s heritage but a gateway to its economic future.