Status of Dry Ports Development in NEPAL - UNESCAP WGDP(2)_14...Status of Dry Ports Development in...

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

1

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

Kathmandu

NEPALArea : 147,181 Sq. Km.

Population: 27.8 Mill.

GDP Per capita : US$ 865

3

CHINA

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

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:

nitb@wlink.com.np

Survey Designing Stage

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:

nitb@wlink.com.np

Survey Designing Stage

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:

nitb@wlink.com.np

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:

nitb@wlink.com.np

Gaur (Rautahat)

Sarlahi

Pre-Feasibility Study completed by NITDB

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

9

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)

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)

10

• 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

11

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

12

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

13

PRIVATE

ENTITY

PUBLIC

ENTITY

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

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

15

Agencies related to Operation

of ICD

TMC

Customs

Freight Forwarders

BanksQuarantine

Shipping Liners

Customs Agents

Multimodal Transport Operators

16

Dry Ports (Roadbased)

17

Dry Ports (Roadbased)

BIRATNAGAR BHAIRAHAWA

TATOPANIKAKARBHITTA

18

19

DRY PORTS

Bhairahawa Kakarbhitta

Birgunj Biratnagar

Tatopani (Under Construction)

UNESCAP

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 ports21

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.

22

Tatopani Dry Port (Under Construction)

23

Rescue Project

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

Kathmandu CFS/ICD (Google View)

25

Korola (Mustang)

26

Dodhara Chadani (Kanchanpur)

27

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

Status of Intergovernmental Agreement on Dry ports

Nepal

29

Signatory Approval/ Acceptance/ Accession/ Ratification

7 November 2013 Not yet

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

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

31

Thank You For Your Attention!