Date:05/07/2005 URL: http://www.thehindubusinessline.com/2005/07/05/stories/2005070502700700.htm

Back Birgunj depot ready to handle Nepal trade

Santanu Sanyal

Kolkata , July 4

NEPAL'S Birgunj inland clearance depot is all set to handle bilateral trade with India, i.e. the imports and exports between India and Nepal.

This follows finalisation of the Customs procedures by the Indian authorities and their acceptance by Nepalese authorities, according to Railways sources.

At present, the Birgunj depot only handles containerised imports and exports to and from third countries (not India), but routed through the Kolkata port. Container Corporation of India is responsible for the transportation of these containers, both loaded and empties, between the port and the depot.

Once Birgunj starts handling bilateral trade, its throughput will jump. The rail movement of bulk exports from India, such as foodgrains and cement, too will receive a boost as the rakes of the Indian Railways will no longer be required to stop at Raxaul, the last railway point on the Indian side on the India-Nepal border; instead, the rakes carrying the exports from India will be able to move straight into the Birgunj depot located within the Nepalese territory for unloading of the consignments. Right now, an estimated 15 rakes a month, carrying bulk exports from India to Nepal, are terminated at Raxaul. On unloading, the consignments are transported by road into the Nepalese territory. Such transhipment will not be needed any more.

Meanwhile, Concor has decided to send shortly some senior officials to Nepal to discuss with the Nepal Intermodal Transport Development Board and other agencies concerned how to renegotiate the agreement signed by the various partners of Himalayan Terminals Pvt Ltd, (HTPL) with Nepalese authorities concerned. HTPL, the terminal management company responsible for operation and maintenance of the clearance depot, is a joint venture of four firms, two Indian and two Nepalese. Concor is one of the Indian partners, also the single largest shareholder.

As compared to its revenue earnings, HTPL's payout to the Nepalese authorities is very high as it involves lumpsum payments irrespective of the revenue earned. Concor, it is learnt, is in favour of replacing the lumpsum payment clause by one providing revenue sharing.

However, it is not sure if the Nepalese authorities will agree to such a proposal. The only hope is that one of the partners of HTPL is a state-owned organisation of Nepal. Renegotiating the agreement will also be in the organisation's interest, it is pointed out.