2 Answers

It could mean either how water is transported through pipes, or the transport of goods  via ships or canal barges.

http://en.wikipedia.org/wiki/Transport

Water
Main article: Ship transport

Automobile ferry in Croatia
Water transport is the process of transport a watercraft, such as a barge, boat, ship or sailboat, makes over a body of water, such as a sea, ocean, lake, canal or river. The need for buoyancy unites watercraft, and makes the hull a dominant aspect of its construction, maintenance and appearance.
In the 19th century the first steam ships were developed, using a steam engine to drive a paddle wheel or propeller to move the ship. The steam was produced in a boiler using wood or coal and fed through a steam external combustion engine. Now most ships have an internal combustion engine using a slightly refined type of petroleum called bunker fuel. Some ships, such as submarines, use nuclear power to produce the steam. Recreational or educational craft still use wind power, while some smaller craft use internal combustion engines to drive one or more propellers, or in the case of jet boats, an inboard water jet. In shallow draft areas, hovercraft are propelled by large pusher-prop fans. (See Marine propulsion.)
Although slow, modern sea transport is a highly efficient method of transporting large quantities of goods. Commercial vessels, nearly 35,000 in number, carried 7.4 billion tons of cargo in 2007.[9] Transport by water is significantly less costly than air transport for transcontinental shipping;[10] short sea shipping and ferries remain viable in coastal areas.[11][12]