Chobhar Dry Port comes into operation

PM Deuba urges to use it for export enhancement

 

Kathmandu, Apr. 5

The first and only dry port in the country away from the border point has come into operation in Chobhar of Kirtipur Municipality in Kathmandu from Tuesday.

Prime Minister Sher Bahadur Deuba inaugurated the facility, Chobhar Dry Port, developed by Nepal Intermodal Transport Development Board (NITDB) at a cost of Rs. 1.54 billion.

Construction of the dry port had begun in August 2018 and was completed in July 2021. It has 65,000 square metres space, enough to accommodate 500 containers and 500 trucks. It has facilities like quarantine, security, operator company office, banks and other essential services, three warehouses, three appraisal shades, stuffing and de-stuffing shade, weighing machines, electricity sub-station, and boundary light.

Containers from sea ports in India will directly arrive here to clear customs-related and other necessary works like quarantine.

Speaking at the inaugural programme, Prime Minister Sher Bahadur Deuba, who also holds the portfolio of the Ministry of Industry, Commerce and Supplies (MoICS), said that dry ports have high importance for a landlocked country like Nepal.

NITDB is an agency under the MoICS.

"It will facilitate trade in a transparent manner and promote sustainable development through trade facilitation," he said.

He urged the government and private sector agencies to work for enhancing export by increasing trade competitiveness and pledged for the removal of policy hurdles to create a favourable business environment.

According to him, to reduce trade deficit, Nepal needs to produce goods using raw materials that are locally available so that it would support in employment generation and economic growth.

"Increasing investment in the productive sector, producing quality goods and promoting export of such goods constitute the foundation of industrial and trade sector development," he said.

Minister for Finance Janardan Sharma urged to use the facility for exports rather than imports. "We need to operate and utilise the dry port in close coordination between the government and private sector," he said.

He maintained that the COVID-19 pandemic and Russia-Ukraine war had created many challenges in the economy. Expressing concerns over the growing imports that is creating pressure on the foreign currency reserves in the country, he said that the situation would improve soon since remittance inflow registered a growth last month.

Nepal's imports increased by 38 per cent to reach Rs. 1308 billion till mid-March while exports amounted to Rs. 174 billion.

Executive Director of the NITDB Ashish Gajurel said that the dry port would help in reducing Nepal's trade deficit by promoting exports.

He informed that dry ports and integrated check posts (ICPs) are constructed and operated in Birgunj, Bhairahawa, Biratnagar, Kakarbhitta and Tatopani.

Construction works are underway to develop ICP in Nepalgunj of Banke district and dry port in Timure, near Rasuwagadhi border point with China, in Rasuwa district.

Likewise, Detailed Project Report is being prepared for the ICP in Dodhara-Chandani of Kanchanpur district and dry port in Korala of Mutang district. Process for the feasibility study for the development of dry port in Kimathanka of Sankhuwasabha, Olangchungola of Taplejung, Mugu and other possible areas is underway, said Gajurel.

He said that these infrastructures, once developed, will help in enhancing the competitive access to the two largest markets in the world – India and China. He also stated that some laws required to be amended to facilitate the cross-border trade and create stability in the international trade.

Likewise, more power should be leveraged to the NITDB and its capacity should be enhanced as it needs to manage large trade infrastructure and expand the facilities, he said.

Operation of the dry port was delayed by eight months because of COVID-19 pandemic.

Published in The Rising Nepal daily on 6 April 2022.