Imports from Birgunj ICD may get dearer

KATHMANDU:

The price of goods being imported through the Inland Container Depot (ICD) at Birgunj may shoot up in the coming days as the Indian Railways has recently decided to increase the transport fare from the Kolkata Port to Birgunj ICD by 10 per cent from December 5.

Container Corporation of India (CONCOR), the subsidiary of Indian Railways, has informed the Nepal Intermodal Transport Development Board (NITDB) about the recent decision, according to Laxman Basnet, executive director of NITDB.

It is reported that implementation of the decision will result in rise in the cost of transport, and consequently also spike up the cost of imports.

Currently, it costs IRs 45,000 on an average to ferry a container of goods from Kolkata Port to Birgunj ICD. Following the revision of the charge from next month, the cost will go up to around IRs 49,500 per container. The rate varies as per the size of the container.

NITDB has said that it will inform Nepal Freight Forwarders Association (NFTA) and the importers as well about the increased fare and the hike in service charge by the Himalayan Terminals Private Limited (HTPL) at the earliest. HTPL is the company that manages the Birgunj Port and it has also increased the service cost by nine to 11 per cent for different services, according to Basnet. “The HTPL manages the parking yard, warehouse, and provides reach stacker services and currently charges Rs 500 per container on an average.”

Basnet further said that while the hike in service charge by the port managing company would not have any significant impact, the rise in railway fare will make the imports more expensive.

The 10-year contract of HTPL already expired in June of this year, but the NITDB had extended the contract for six more months. The board has to either reappoint the same company or hire a new one after the deadline ends. While extending the contract, NITDB had raised the amount it charges HTPL, while the company also jacked up its service fees.

HTPL has been operating the ICD in Birgunj since 2000. The HTPL is a joint venture company of CONCOR and Nepali private investors. CONCOR, along with others, has also applied to manage the Birgunj ICD as NITDB had invited international bidding.

On an average, 20 container rakes arrive at Birgunj from Kolkata Port every month. But the movement is not regular because there are some restrictions on the type of wagons that are used for Nepali trade, and since a full rake must be formed before it can be moved, according to NFTA.

Source: THT