Inland waterways are expected to play a bigger role in the transportation of freight across the country in the coming 15 years, said Li Shenglin, Minister of Communications, in a China Daily report.

At present rail and road carries the biggest cargo share, but if authorities have their way, this will change as they intend to invest heavily in upgrading inland waterways infrastructure.

"The Chinese government welcomes foreign capital and social funds to invest in inland waterway projects," said Mr Li at a recent international inland shipping forum.

The central government alone has put aside CNY15 billion (US$1.9 billion) to improve inland waterways from 2006 to 2010.

The ministry is reported to be preparing to dredge waterways to make them accessible to cargo vessels on the Yangtze, the Pearl and the Beijing-Hangzhou Grand Canal.

The newspaper said that as a result of these efforts, the length of high-grade channels that can accommodate 1,000-ton vessels will increase considerably.

Improvements have also been earmarked for ports in Chongqing, Wuhan, Changsha and Nanchang, including new berths to handle containers, ore, coal, petroleum and food to meet rising demand.

The newspaper report noted that the benefits of inland shipping include the ability to carry large amounts of cargo at a lower cost and in a more environmentally friendly manner than other modes of transport.

In 2006, the inland shipping industry attracted CNY23 billion ($2.9 billion) in investment, according to a senior official cited in the report.