The Hindu Business Line : Sirsiya ICD in Nepal to be commissioned soon

THE inland container depot (ICD), located at Sirsiya near Nepal's business hub of Birganj and rail-linked to Kolkata port (both Kolkata Dock System and Haldia dock), is to be commissioned shortly, most probably by the middle of July, according to informed sources.

With this, the rail borne trade between Nepal and Kolkata port will receive a boost as the trains will run directly between the ICD and the port.

The construction of the Sirsiya ICD, with the World Bank assistance of about $10 million, was completed more than three years ago and the Raxaul-Sirsiya rail connection funded by India (Rs 17 crore) too was ready for operation two years ago. Yet the ICD could not be commissioned for various reasons.

First, India and Nepal took a long time to firm up an agreement to govern the railway operations along the 5.3-km long stretch between Raxaul (in north Bihar and the last Indian railway station close to India-Nepal border) and Sirsiya. The agreement was signed in November last year.

Next, the appointment of the terminal contractor too was delayed. First it was an open tender to which several firms in India, Nepal and other countries had bid. Subsequently, the tender was cancelled as the authorities concerned decided to award the job only to a joint venture company to be formed from the companies from the two countries and accordingly a new tender was floated. The joint venture company is now being formed. To be registered in Nepal, it will have three partners, namely India's Container Corporation of India (Concor) and Nepal's two firms, one state-owned and the other a private company.

Now proper Customs procedures have to be in place. The consignments will be subjected to Customs checks twice. In case of import, the first checking will be at Kolkata port and again in Nepal by land customs authorities of that country. In case of exports from Nepal, the first checking will be in Nepal and again at Kolkata port. It is felt that transit customs document must be appraised and cleared immediately, particularly at Kolkata port.

After all, for Nepal-bound imports and Nepalese exports to other countries, both routed through Kolkata port, India is a third country offering only the transit facility and the Indian Customs, therefore, must act accordingly. This is important because transit time should be uniform for all transporters and the documents and physical transfer of goods must take place simultaneously. The average turnaround time is estimated at one week - three days each direction and one day at the terminal.

Since August last year, Concor has been transporting Nepalese imports in containers through Kolkata port up to Raxaul. The volume of traffic is about 400 TEUs per month on an average. It is virtually one-way traffic as hardly any cargo is available for the Raxaul-Kolkata port leg.

The freight rate to be charged for the proposed rail transportation between the ICD and the port is still being finalised. "We will perhaps continue to charge the promotional rates now in force for the run between Kolkata port and Raxaul," said a spokesman for Concor.