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Laxman Bahadur Basnet, Executive Director,
Nepal Intermodal Transport Development Board (NITDB)
Kathmandu, Nepal(14-15 November 2017, Bangkok)
Status
of
Dry Ports
Development
in NEPAL
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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
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Kathmandu
NEPALArea : 147,181 Sq. Km.
Population: 27.8 Mill.
GDP Per capita : US$ 865
3
CHINA
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Foreign Trade Situation
Stream Share of Total Trade(2016/17)
Export 6.9 %
Import 93.09%
100%
India 64.92%
Overseas 35.08%
100%
Status of Nepal as per DoingBusiness Report 2015
Export Cost per container US$ 2545
Export Time 40 days
Import cost per container US$ 2650
Import Time 39 days
4Source: WB & GON
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Rasuwa(Rasuwa)
Olangchungola(Taplejung)
Yari(Humla)
Kimathanka(Sankhuwasabha)
Nechung(Mustang) NORTH
Riwu
Lizi
Pulan
Larke(Gorkha)
Mugu(Mugu)
Hyazimang
Dodhara Chadani(Kanchanpur)
ICD (Under Construction)(First Phase)
Second Phase (MOU)
Third Phase (MOU)
Inland Clearance Depots (ICDs) Under Operation
Integrated Check Posts (ICPs) Proposed
CFS/ICD
Major Trade & Transit Points of Nepal
Nepal Intermodal Transport Development Board, Kathamndu, Nepal, Phone: +977-1-4440936, 4439664, Email:
Survey Designing Stage
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Rasuwa(Rasuwa)
Olangchungola(Taplejung)
Yari(Humla)
Kimathanka(Sankhuwasabha)
Nechung(Mustang) NORTH
Riwu
Lizi
Pulan
Larke(Gorkha)
Mugu(Mugu)
Hyazimang
Dodhara Chadani(Kanchanpur)
ICD (Under Construction)(First Phase)
Second Phase (MOU)
Third Phase (MOU)
Inland Clearance Depots (ICDs) Under Operation
Integrated Check Posts (ICPs) Proposed
CFS/ICD
Major Trade & Transit Points of Nepal
Nepal Intermodal Transport Development Board, Kathamndu, Nepal, Phone: +977-1-4440936, 4439664, Email:
Survey Designing Stage
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Rasuwa(Rasuwa)
Olangchungola(Taplejung)
Yari(Humla)
Kimathanka(Sankhuwasabha)
Nechung(Mustang) NORTH
Riwu
Lizi
Pulan
Larke(Gorkha)
Mugu(Mugu)
Hyazimang
Dodhara Chadani(Kanchanpur)
Existing Railway Connectivity
Proposed Railway Connectivity
CFS/ICD
Status of Railway Connectivity
Nepal Intermodal Transport Development Board, Kathamndu, Nepal, Phone: +977-1-4440936, 4439664, Email:
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Rasuwa(Rasuwa)
Olangchungola(Taplejung)
Yari(Humla)
Kimathanka(Sankhuwasabha)
Nechung(Mustang) NORTH
Riwu
Lizi
Pulan
Larke(Gorkha)
Mugu(Mugu)
Hyazimang
Dodhara Chadani(Kanchanpur)
Pre-Feasibility Study completed
by NITDB
CFS/ICD
Nepal Intermodal Transport Development Board, Kathamndu, Nepal, Phone: +977-1-4440936, 4439664, Email:
Gaur (Rautahat)
Sarlahi
Pre-Feasibility Study completed by NITDB
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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
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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)
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Transport Infrastructure (2016)
Roads
Local Roads (57,632 Km) Strategic Roads (12,473 Km)
Railways
Jayanagar (India) - Janakpur (Nepal)
(51 KM)Raxaul (India) – Birgunj (Nepal)
(5 KM)
Airfields
48 Nos. (registered)
Dryports
Road based (3+1) Rail based(1)
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• Initiated on Eighth Five Year Plan (1992-97)• 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, 2004
Policies for Development of Dry ports
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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, 2004
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Nepal Intermodal Transport Development Board (NITDB)
Secretary, MOCSChairperson
Deputy Governor, NRB
Director General, Customs
Joint Secretary, MOPPT
President, FNCCI
President, NCC
President, NEFFA
Perfect PPP Model
Executive Director(Secretary)
Institutional Arrangements
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PRIVATE
ENTITY
PUBLIC
ENTITY
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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
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Relevant Agencies for development
of ICD
National Planning
Commission Ministry of Commerce &
Supplies
Developer/
Operator
NITDB / NITDA
Ministry of Environment
Ministry of Finance
Ministry of Physical
Infrastructure and
Transport
Ministry of Urban
Development
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Agencies related to Operation
of ICD
TMC
Customs
Freight Forwarders
BanksQuarantine
Shipping Liners
Customs Agents
Multimodal Transport Operators
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Dry Ports (Roadbased)
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Dry Ports (Roadbased)
BIRATNAGAR BHAIRAHAWA
TATOPANIKAKARBHITTA
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DRY PORTS
Bhairahawa Kakarbhitta
Birgunj Biratnagar
Tatopani (Under Construction)
UNESCAP
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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 ports21
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Future Dryports• Under Construction:
- Tatopani ICD - Source: PR China (Turn Key) - Connectivity: Asian Highway 42 (AH42 )
(Construction period is extended due to earthquake)
• Proposed:– 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.
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Tatopani Dry Port (Under Construction)
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Rescue Project
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Rasuwa Dry Port
➢ Layout Design
Admin Building5000 Sq.M
Warehouse750 Sq.M.
Appraisal Shed 2 nos.
Total 2080 Sq.M.
Parking Area for 350 trucks
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Kathmandu CFS/ICD (Google View)
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Korola (Mustang)
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Dodhara Chadani (Kanchanpur)
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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 Facilitation28
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Status of Intergovernmental Agreement on Dry ports
Nepal
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Signatory Approval/ Acceptance/ Accession/ Ratification
7 November 2013 Not yet
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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
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Way Forward:
• Cost of logistics and transit transportation forlandlocked countries is > 15% than coastal countries
• UNESCAP needs to address capacity buildingactivities for managerial, technical and awarenessissues regarding dry port taking in mind of itsimportance
• Should conduct national level activities also
• International agency should focus on bringing outguidelines related to transshipment, port leasing,Registration of LOCODE, Locate dry port on theinternational shipping map, etc.
• Ratification of Intergovernmental Agreement on Dryports
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Thank You For Your Attention!