Autonomous inland shipping offers a safer and more efficient form of transportation over water with the potential to reduce maritime carbon emissions. However, the operation of autonomous vessels presents unique challenges due to complex dynamics, varying traffic conditions, and environmental disturbances. To ensure the safe navigation of these vessels in confined inland waterways, it is crucial to address manoeuvring prediction and motion control challenges. Research focusing on these challenges disregards or only partially incorporates inland waterway characteristics related to the vessel and its surroundings. This study provides a comprehensive analysis of these key factors. By modelling the vessel using a modified Manoeuvring Modelling Group (MMG) model specifically tailored for confined waterways, hydrodynamic effects due to shallow water, channel banks, and current are accounted for. A nonlinear model predictive controller (NMPC) is employed for the vessel path following control under various scenarios, including straight channels, confluences, and river bends. It is observed that the hydrodynamic effects from the channel banks significantly impact vessel steering. Compared to conventional proportional-integral-derivative (PID) controllers, NMPC effectively reduces course deviations and cross-track errors under varying water depth and ship-to-bank distance conditions, while also requiring fewer rudder deflections. Furthermore, key performance metrics related to the control of inland waterway vessels are proposed to evaluate the controller's performance further. The NMPC control law demonstrates its effectiveness in capturing the hydrodynamic effects and improving navigation safety in confined waterways.