Inland water transport The river network of Bangladesh serve as the most important transport artery in the country and play a vital role in national life. Almost all big cities, towns and commercial centres of the country grew up on the banks of its rivers. In this part of the sub-continent, mechanised inland water transport in the private sector came into existence with the introduction of steam-powered vessels owned by Indian General Navigation (IGN) and River Steam Navigation (RSN) during British rule. They dominated the scene throughout British rule and during the Pakistan regime. In the 1960's, a few local operators such as Pak Bay, Sinclair Murray, and Chalna Lighterage started operating in the cargo sector and Pak Waterways in the passenger sector. The entire passenger and cargo traffic was carried by the private sector, 70% of this being managed by the British owned companies.
With the creation of the East Pakistan Inland Water Transport Authority (EPIWTA) in 1958, changes occurred rapidly. Navigation by waterways improved, Chalna anchorage was established, waterways mileage increased, and numerous points of embarkation/ disembarkation were established throughout the country. IWTA took steps to meet an ever-increasing demand through import and distribution of 400 gray marine diesel engines to local entrepreneurs in the early 1960s. As a result, the monopoly of the British owned companies in the passenger sector was broken. A number of wooden passenger vessels owned by local operators soon started to ply on the waterways of the country. During British rule, IGN & RSN Co. not only played a predominant role in the water transport sector, but also carried out river conservancy work in important waterways and provided landing facilities at some river side stations to cater to their own commercial interests. Later, IWTA converted the RSN & IGN into Pakistan River Steamers (PRS). After the emergence of Bangladesh, the abandoned companies including the PRS and Pak Bay Flotilla were taken over by the government-owned Bangladesh Inland Water Transport Corporation (BIWTC). Nevertheless, 85% of the passenger traffic is still carried by vessels owned by the private sector. In the early 1960s, IWTA piloted a scheme for acquisition of 24 coasters in the private sector. These coasters, with carrying capacity ranging from 600 to 1,000 tons, were capable of crossing the bay and plied to and from the port The private sector thus entered a new field of specialised service and helped in easing the congestion at the seaport and bulk transportation of cargo to various points within the country at cheaper costs. There are as many as 100 coasters now plying on these routes. As an aftermath of the Indo-Pak War of 1965, as many as 193 Indian owned cargo vessels consisting of dumb flats, barges, tugs etc were seized and adjudicated as prize of war in the High Court (Prize Jurisdiction). Later, most of these vessels were sold to the private