Status of Development of Dry Ports in Nepal
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1 Status of Development of Dry Ports in Nepal Laxman Bahadur Basnet, Executive Director, Nepal Intermodal Transport Development Board (NITDB) Kathmandu, Nepal (25-26 November 2015, Bangkok) 1
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$ 730 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(2013/14) Source: WB & GON Export 11% Import 89% 100% India 63% Overseas 37% 100% 4
5 Transit Provision (Indian Territory) Gateway Port (Kolkata/Haldia Port is only designated port for Nepal Cargo) 26 Border Crossing point 1 rail head(birgunj) 1 rail based / 4 road based dryports 5
6 Trade Corridors (Major) Yari NORTH Nechung Rasuwa Kimathanka Olangchungola Dryports/ Inland Clearance Depots under operations (4) Dryport under construction (2) Proposed for future construction (6) 6
7 Transport Infrastructure (2014/15) Roads Local Roads (52,883 Km) Strategic Roads (12,494 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) 7
8 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,
9 Relevant Acts and Regulation: Private Financing Act 2006-BOT Foreign Investment Policy 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-1992 Multimodal Act and Regulation Terminal Leasing out Regulation,
10 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 10
11 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. 11
12 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 12
13 Multimodal Transport Operators TMC Customs Customs Agents Agencies related to Operation of ICD Freight Forwarders Shipping Liners Quarantine Banks 13
14 Dry Ports (Roadbased) BIRATNAGAR BHAIRAHAWA KAKARBHITTA TATOPANI 14
15 Dry Port (Railbased) BIRGUNJ 15
16 Birgunj Dryport Insert Birgunj 16
17 Dry Port Under Construction (Tatopani) 17
18 18
19 UNESCAP Bhairahawa Birgunj DRY PORTS Kakarbhitta Biratnagar Tatopani (Under Construction) 19
20 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 20
21 Future Dryports Under Construction: - Tatopani ICD - Source: PAR China, Turn Key) - Connectivity: Asian Highway 42 (AH42 ) (Construction period is extended due to earthquake) Proposed: Rasuwa: - A technical Team is on site for survey and design (Assistance : PR China) - MOU signed by two Govt. Dodhara - Chadani (Kanchanpur) - AH2: Pre-feasibility study is ongoing. CFS/ICD at Kathmandu Valley (Assistance: WB) : RFP for design consultant is under evaluation 21
22 Rasuwa Site (Google View) Future Dryports 22
23 Future Dryports Kathmandu CFS/ICD (Google View) 23
24 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 24
25 Status of Intergovernmental Agreement on Dry ports Nepal Signatory Approval/ Acceptance/ Accession/ Ratification 7 November 2013 Not yet 25
26 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 26
27 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 27
28 Thank You. 28
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