Status of Dry Ports Development in NEPAL
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1 Status of Dry Ports Development in NEPAL Laxman Bahadur Basnet, Executive Director, Nepal Intermodal Transport Development Board (NITDB) Kathmandu, Nepal 1 (14-15 November 2017, Bangkok)
2 Presentation Overview Key Information on trade and transit situation in Nepal Policy Guidelines Institutional Arrangements Related Act and Regulations Expected Benefit Status of Intergovernmental Agreement on dry Ports : Nepal Challenges Way Forward 2
3 NEPAL Area : 147,181 Sq. Km. Population: 27.8 Mill. GDP Per capita : US$ 865 CHINA Kathmandu 3
4 Foreign Trade Situation Status of Nepal as per Doing Business Report 2015 Export Cost per container US$ 2545 Export Time 40 days Import cost per container US$ 2650 Import Time 39 days Stream Share of Total Trade(2016/17) Source: WB & GON Export 6.9 % Import 93.09% 100% India 64.92% Overseas 35.08% 100% 4
5 Major Trade & Transit Points of Nepal Pulan Second Phase (MOU) Dodhara Chadani (Kanchanpur) Yari (Humla) Mugu (Mugu) Hyazimang Nechung (Mustang) Lizi Third Phase (MOU) ICD (Under Construction) (First Phase) Survey Designing Stage NORTH Integrated Check Posts (ICPs) Proposed Larke (Gorkha) Rasuwa (Rasuwa) CFS/ICD Riwu Olangchungola Kimathanka (Taplejung) (Sankhuwasabha) Inland Clearance Depots (ICDs) Under Operation Nepal Intermodal Transport Development Board, Kathamndu, Nepal, Phone: , ,
6 Major Trade & Transit Points of Nepal Pulan Second Phase (MOU) Dodhara Chadani (Kanchanpur) Yari (Humla) Mugu (Mugu) Hyazimang Nechung (Mustang) Lizi Third Phase (MOU) ICD (Under Construction) (First Phase) Survey Designing Stage NORTH Integrated Check Posts (ICPs) Proposed Larke (Gorkha) Rasuwa (Rasuwa) CFS/ICD Riwu Olangchungola Kimathanka (Taplejung) (Sankhuwasabha) Inland Clearance Depots (ICDs) Under Operation Nepal Intermodal Transport Development Board, Kathamndu, Nepal, Phone: , ,
7 Status of Railway Connectivity Pulan Yari (Humla) Hyazimang Dodhara Chadani (Kanchanpur) Mugu (Mugu) Nechung (Mustang) Lizi NORTH Larke (Gorkha) Rasuwa (Rasuwa) Riwu Proposed Railway Connectivity CFS/ICD Olangchungola Kimathanka (Taplejung) (Sankhuwasabha) Existing Railway Connectivity Nepal Intermodal Transport Development Board, Kathamndu, Nepal, Phone: , ,
8 Pre-Feasibility Study completed by NITDB Pulan Yari (Humla) Hyazimang Dodhara Chadani (Kanchanpur) Mugu (Mugu) Nechung (Mustang) Lizi NORTH Larke (Gorkha) Rasuwa (Rasuwa) Riwu Pre-Feasibility Study completed by NITDB CFS/ICD Gaur (Rautahat) Sarlahi Olangchungola Kimathanka (Taplejung) (Sankhuwasabha) Nepal Intermodal Transport Development Board, Kathamndu, Nepal, Phone: , ,
9 Transit Provision (Indian Territory) Gateway Port (Kolkata/Haldia and Visakhapatnam Ports are designated ports for Nepal Cargo) 26 Border Crossing points 1 rail head(birgunj) 1 rail based / 4 road based dryports Transit Treaty has signed with PR China Protocol is being finalized. 6 Agreed points for development of dryports 2 points (Tatopani and Rasuwa is being developing) 9
10 Transport Infrastructure (2016) Roads Local Roads (57,632 Km) Strategic Roads (12,473 Km) Jayanagar (India) - Janakpur (Nepal) (51 KM) Road based (3+1) Railways Airfields 48 Nos. (registered) Dryports Raxaul (India) Birgunj (Nepal) (5 KM) Rail based(1) 10
11 Policies for Development of Dry ports Initiated on Eighth Five Year Plan ( ) Environment Policy Investment Policy Transit and Logistics Policy Transport and Trade Facilitation Policy Bilateral/Multilateral Trade and Transit Treaties GATT/WTO, SAFTA, BIMSTEC NITDB Formation Order, 1998 Nepal India Rail Services Agreement,
12 Relevant Acts and Regulation: Private Financing Act 2006-BOT Foreign Investment Policy (2015) and Technology Transfer Act 1992 Land Acquisition Act-1977 Environment Protection Act/Rules-1997 Export and Import Act-1957 Customs Act-2007 Motor Vehicle Act-1993 Labor Act-2017 Multimodal Act and Regulation Terminal Leasing out Regulation, 2013 Nepal India Rail Services Agreement,
13 Institutional Arrangements Nepal Intermodal Transport Development Board (NITDB) Secretary, MOCS Chairperson P U B L I C E N T I T Y Deputy Governor, NRB Director General, Customs Joint Secretary, MOPPT Executive Director (Secretary) Perfect PPP Model President, FNCCI President, NCC President, NEFFA P R I V A T E E N T I T Y 13
14 Functions of NITDB To develop, manage and promote ICD terminals for the facilitation of Nepal's exports and imports; To enter into agreement with private sector company, selected on the basis of competitive bidding, for leasing out the management of ICD terminals; To prescribe criteria in determining the service charges of the terminal operation; To conclude railway operation agreement with Indian Railways for rail movement of cargo to/from ICD. 14
15 Ministry of Urban Development National Planning Commission Ministry of Commerce & Supplies Ministry of Physical Infrastructur e and Transport Relevant Agencies for development of ICD Developer/ Operator Ministry of Finance Ministry of Environment NITDB / NITDA 15
16 Multimodal Transport Operators TMC Customs Customs Agents Agencies related to Operation of ICD Freight Forwarders Shipping Liners Quarantine Banks 16
17 Dry Ports (Roadbased) 17
18 Dry Ports (Roadbased) BIRATNAGAR BHAIRAHAWA KAKARBHITTA TATOPANI 18
19 19
20 UNESCAP Bhairahawa Birgunj DRY PORTS Kakarbhitta Biratnagar Tatopani (Under Construction) 20
21 Major Functions of Dryports Enhance Export and Import of Cargo Stuffing /de-stuffing of containers Warehousing Temporary storage of cargo and containers Computerized processing of documents with capability of being linked to Electronic Data Interchange (EDI) Customs clearance Transit operations by rail/road to and from serving ports 21
22 Future Dryports Under Construction: - Tatopani ICD - Source: PR China (Turn Key) - Connectivity: Asian Highway 42 (AH42 ) Proposed: (Construction period is extended due to earthquake) Rasuwa: (Assistance : PR China) - Detail Design is about to finalize. - Construction contract will be awarded soon. CFS/ICD at Kathmandu Valley (Assistance: WB) : - Awaiting for Construction Tender Process. Korola (Mustang): - Pre-feasibility study has been completed. Dodhara Chadani (Kanchanpur)- AH2: - Feasibility study is ongoing. 22
23 Tatopani Dry Port (Under Construction) Rescue Project 23
24 Layout Design Rasuwa Dry Port Admin Building 5000 Sq.M Warehouse 750 Sq.M. Parking Area for 350 trucks Appraisal Shed 2 nos. Total 2080 Sq.M.
25 Kathmandu CFS/ICD (Google View) 25
26 Korola (Mustang) 26
27 Dodhara Chadani (Kanchanpur) 27
28 Expected Benefit Reduction in Transit time and cost One stop arrangements Managed Warehousing Well- Equipped Facilities Managed Parking Facilities Security of goods Export Promotion Trade Facilitation 28
29 Status of Intergovernmental Agreement on Dry ports Nepal Signatory Approval/ Acceptance/ Accession/ Ratification 7 November 2013 Not yet 29
30 Challenges Geological status of Roads and Infrastructure International Recognition of Dry ports Transshipment facility and additional Port Connectivity International Guidelines for leasing out of ports Road carriage act and Regulation Rail carriage act and regulation Dry Port Management issues (Managerial/Technical/Awareness) Reduction in Import/Export Process 30
31 Way Forward: Cost of logistics and transit transportation for landlocked countries is > 15% than coastal countries UNESCAP needs to address capacity building activities for managerial, technical and awareness issues regarding dry port taking in mind of its importance Should conduct national level activities also International agency should focus on bringing out guidelines related to transshipment, port leasing, Registration of LOCODE, Locate dry port on the international shipping map, etc. Ratification of Intergovernmental Agreement on Dry ports 31
32 Thank You For Your Attention!
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