The Nepal Intermodal Transport Development Board (NITDB) is enlarging the capacity of the Inland Container Depot (ICD) in Sirsiya, Birgunj to be able to accommodate various types of containers and end congestion.
The board issued a notice for land acquisition on Tuesday. It plans to acquire another 10 bighas to expand the area of the ICD. The dry port is presently spread over 38 hectares.
NITDB Executive Director Sarad Bikram Rana said they planned to acquire land in the west of the ICD where there is now a warehouse.
According to him, the expanded ICD will facilitate unloading of bulk cargoes that come in open wagons, refrigerated wagons and flat wagons. These wagons are used to
transport products like cement clinker, iron and steel and coal apart from bagged cargoes.
At present, the ICD only handles unloading of closed and container wagons. Last year, the ICD handled 20,000 containers and a number of bagged cargoes. As of mid-March this year, 25,600 containers have passed through the ICD. It now accommodates six railway lines. Rana said the ICD would be able to handle two more railway lines with its expanded capacity.
Presently, the ICD can barely handle 40-45 wagons (90 containers) that arrive every other day. Around 14 wagons have to be left outside the warehouse when freight trains arrive at the ICD. This has increased the cost for importers. During the rainy season, there is the risk of cargo being damaged by water.
The board moved to increase the capacity of the ICD following growing complaints from traders about congestion. Compared to a decade ago when the ICD started operations, container traffic has swelled 452 times, according to the board.
As per the Nepal-India Rail Service Agreement held last year in Nepal, the Indian government has agreed in principle to allow additional railway tracks for the expanded ICD. The World Bank-funded Nepal-India Trade and Transport Project is investing $ 1.6 million to lay the extra railway lines. The Nepal government has agreed to pay for the land acquisition.
Meanwhile, the NITDB has been assessing the proposals of three Indian companies for the management contract for the ICD, said Rana. The lease term of the current lessee Himalayan Terminal, a Nepal-India joint venture terminal management company, ends on July 28.
The dry port accounts for a major share of the country’s total customs revenue. According to the NITDB, the government has been receiving a minimum rental of Rs 75 million annually.
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