The Hindu Business Line : Maintenance, operation of inland clearance depot Birgunj — Himalayan Terminals for reworking pact with Nepal

HIMALAYAN Terminals Pvt Ltd (HTPL), the Birgunj-based terminal management company which is a joint venture between two Indian and two Nepalese firms, has urged the Nepalese authorities concerned to renegotiate the terms of the 10-year contract signed some time ago for operation and maintenance of the inland clearance depot (ICD) within the Nepalese territory.

The system of payment by HTPL to Nepalese authorities concerned, as incorporated in the present contract, it is felt, should be abandoned in favour of a new system to be beneficial to HTPL. The present system, involving high payout to the Nepal Government, is proving too much for the joint venture company, according to HTPL sources.

The throughput at Birgunj ICD has been much less than originally estimated. Against the estimated container throughput of 2,000/2,500 TEUs (twenty-foot equivalent unit) per month, the actual throughput has been around 600/700 TEUs or so.

The throughput of other types of cargo was estimated at two lakh tonnes annually. Not even 5 per cent of that has materialised so far, the sources point out. HTPL is required to pay every year a sum Rs 5 crore in Nepalese currency to the Nepal Government.

However, after meeting various costs, HTPL is not left with enough surplus for meeting its commitment to the government. Hence, this suggestion for an alternative arrangement to be acceptable to both HTPL and the Nepalese authorities.

However, such an arrangement is still to be worked out, as various models, including the profit sharing one, are being examined, it is learnt.

Whether the Nepalese authorities will accede to HTPL's request for a new payment arrangement remains to be seen. After all, HTPL's present payment arrangement is linked to the schedules of repayment of the World Bank loan by the Nepal Government.

The loan, amounting to $12 million, was taken by the Nepal Government from the World Bank to set up the ICD at Birgunj.

The Nepal Government would be required to pay the World Bank an estimated Rs 86 crore or so in Nepalese currency over 10-year period.

Initially, it was therefore decided that the terminal management company would be required to pay at the rate of Rs 8.6 crore (in Nepalese currency) every year to the Nepal Government over the entire period.

Subsequently, it was revised downward to Rs 4.8 crore (in Nepalese currency) annually for first three years, to be stepped up to more than Rs 10 crore (in Nepalese currency) annually for the subsequent seven years.

Any change in this arrangement, it is felt, will be possible only with the consent of the World Bank

HTPL was constituted in July 2004 as a joint venture of three companies, namely, Container Corporation of India, which is a subsidiary of the Indian Railways, two Nepalese firms, namely, Nepal Transit Warehousing Corporation, a state-owned organisation, and Interstate Multimodal Transport Pvt Ltd, a private firm.

Subsequently, Concor divested its 20 per cent stake in favour of Transworld, an Indian shipping company. In other words, the Indian companies together hold 60 per cent of the equity.

Spread over 90 acres of land, the Birgunj ICD, operated and maintained by HTPL, is complete with modern handling facilities and two warehouses with total storage space of 1,75,000 sq ft.

The open space can accommodate 1,600 containers.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Air Deccan to appoint new COO in 4-5 days

British Airways unveils special fares for students

Airbus-380 soars in style at Paris Air Show

GE Shipping buys dry bulk carrier

Maintenance, operation of inland clearance depot Birgunj — Himalayan Terminals for reworking pact with Nepal

To increase passenger revenue — Rlys to reallocate coaches based on occupancy patterns