The Nepal Intermodal Transport Development Board (NITDB) has awarded the management contract to Himalayan Terminal for the next five years starting from January 2015. The company had quoted Rs 800 million in its bid to operate the dry port.

The NITDB had invited proposals from interested firms to operate and manage the ICD after its lease contract with Himalayan Terminal expired at the end of July. The board had extended the existing lease by six months.

Along with Himalayan Terminal, two other companies, Container Corporation of India and HIND Terminal, had participated in the bid. India’s Kankar Company is the joint venture partner of Himalayan Terminal, said its manager Ram Babu Sah. Kankar is a sister organization of Indian Railways and the Indian government owns 63 percent of its shares.

In 2004, the government and Himalayan Terminal had signed a 10-year contract to operate the ICD for a payment of Rs 400 million. After the ICD failed to get the expected business, the fee was reduced to Rs 200 million. However, the company has been earning a profit for the last three years due to increased trading activities.

The Birgunj ICD is the country’s first rail-linked terminal that caters to bilateral cargo to and from India besides third country imports and exports. It was constructed in 2000 with World Bank assistance.

Last year, the ICD handled 20,000 containers and a number of other bagged cargoes. The dry port accounts for a major share of the country’s total customs revenue.