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Last year India opened Visakhapatnam port as a second gateway, after Kolkata, for transit cargo to Nepal. The move helped Nepal, as the number of rakes operated by Concor to Birgunj (Nepal) jumped nearly 50 per cent to 45-50 a month. But it also brought along a problem.
Since Visakhapatnam is 1,400 km from Nepal, shipping line Maersk offered zero-detention cost till the containers reached that country by rail. According to sources, a section of Nepalese traders is now using the window for market arbitrage causing serious disruption to the system. The traders delay taking delivery of cargo and use the zero-detention facility as free warehousing.
This has also disrupted movement of empty containers, affecting the turnaround time. The usual practice is as soon as a container reaches the port, the Nepalese importer is expected to submit documents for forward movement of the cargo through India. Sources said many delay the paper work for months leading to a logjam.
The official reason attributed is ‘administrative delay.’ On June 9, Kathmandu Port reported that routing of approvals through the Nepalese embassy in Delhi is delaying the transshipment of containers from Vizag.
Some also blame Concor, which has the monopoly to run container trains to Nepal, and Maersk, the sole operator at the port. “Lack of competition is not good for trade. We have been advocating roping in more lines at Visakhapatnam,” Ashok Temani, chairman of the Road, Transport and Transit Committee of the Nepalese apex chamber FNCCI told BusinessLine from Birgunj.
Temani, himself an importer, plans to move imports to Kolkata due to the delay from Visakhapatnam. Kolkata offers an easier road transport option, he said.
Maersk officials were not available for comment.
The current loading rate from Visakhapatnam is 15-16 rakes a month with 600-800 containers waiting to be loaded at any given time.
Sources said the loading rate could be speeded up if container-turnaround gets faster. The logistics industry works on a relay model. For the forward journey of a rake with 90 loaded containers there should be adequate empties for the return journey.
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