Thursday, November 23, 2023

Chobhar Dry Port leased out for five years

 Kathmandu, Nov. 22

Nepal Intermodal Transport Development Board (NITDB) has awarded the management and operation responsibility of the Chobhar Dry Port, the only dry port in the country away from the border points, to the TransNepal Freight Services JV, Biratnagar for the next five years.

The company is the joint venture of the TrnasNepal Freight Services Pvt. Ltd. Nepal and TRS Lift and Shift Services Pvt. Ltd. of India. It will operate the facility at the cost of Rs. 28.8 million for five years on revenue sharing model.

According to Ashish Gajurel, Executive Director of the NITDB, it’s a kind of arrangement in line with the Public Private Partnership (PPP). if the revenue goes above the set amount, there would be a revenue sharing of 60-40 per cent where the NITDB would be entitled of 40 per cent of the revenue.

He said that the NITDB can't operate the facility according to its own regulations. It has been operating the Chobhar Dry Port as per stop-gap arrangement for two years as the company couldn't forecast the traffic flow to the port. Other six dry ports have also been operated by the private sector.

Gajurel stated that the dry port cannot be operational until the Kathmandu Terai Expressway is ready. "There is a clear provision that the management and operation of the dry port must be carried out through a company selected through a competitive system according to the current Terminal Leasing Regulation, 2070, so the selected company is tasked to operate on lease for five years in the Public Private Partnership (PPP) model, said Gajurel. 

  Published in The Rising Nepal on 23 November 2023.

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