• RENDEZVOUS
Ashish Gajurel is currently working as executive director at Nepal Intermodal Transport Development Board, Ministry of Industry, Commerce and Supplies. He also worked as consultant at the Investment Board Nepal. He has written a book 'Performance-Based Contracts for Road Projects' published through international publication Springer. He completed Master of Science (MSc) degree in Transportation Systems from Technical University Munich, Germany. He has authored numerous articles for national electronic and news media about traffic management, transportation infrastructure, public transportation, and so forth. He has also taught Transport Economics and Public Transportation at the Institute of Engineering Pulchowk, Tribhuvan University. The construction of Chobhar Dry Port was completed under his leadership. The Himalayan Times had a tête-à-tête with Gajurel over the operation of Chobhar Dry Port. Excerpts:
Why has the newly built Chobhar Dry Port not been able to get the expected amount of business?
We have started operating Chobhar Dry Port from April 5, 2022. It is true that we are not getting the expected amount of business as we only have twothree cargo vehicles using our services everyday. We had expected at least 10 vehicles everyday in the beginning phase and our expectation is not unrealistic because everyday around 700 cargo vehicles enter Kathmandu valley according to traffic police.
We are now working hard to motivate private sector to use the dry port and get at least 50 trucks everyday.
Chobhar Dry Port also has enough space for parking, warehousing, packing goods so if any supplier wants to use our place, they can do so after paying service charge. Private sector has started using warehouse and parking but still this facility also remains largely unused at this stage.
Chobhar Dry Port offers two kinds of service, custom clearance of export and import from EXIM terminal. Secondly, it provides services of parking of cargo vehicles, warehousing, packaging in the domestic terminal. We have started the concept of 'Logistics Hub' from the domestic terminal.
Why are business people not attracted to Chobhar Dry Port at this stage?
There are multiple reasons for all this. First of all, businesses are used to the current mode of business. They feel comfortable getting customs clearance at southern borders, particularly at Birgunj, Bhaiwahawa, Kakkadbhitta and Biratnagar customs.
Secondly, business people involved in export and import of goods are not fully aware of the benefit they will receive when they use Chobhar Dtry Port. Misconception about the GPS locking system is also a reason why many business people are not using this dry port. Delays in Kathmandu-Tarai Fast Track is another important reason.
It will take some time to change the habit. Chobhar Dry Port was built at the cost of Rs 1.54 billion with loan assistance from the World Bank and this infrastructure was built with the objective of easing business and commerce by enabling business houses to export and import goods without any hassles. We put maximum effort to complete this project on time although it was during the peak of COV- ID-19 . Business people involved in export and import of goods can get the same services or even better here at Chobhar Dry Port than they get in the entry points in Birgunj and Biratnagar. As customs clearance in Birgunj and Biratnagar sometimes take longer periods, Chobhar Dry Port can be a good option for business people to get the same services from this port.
Every day almost 700 vehicles loaded with goods enter Kathmandu from southern border points. These vehicles have to wait considerably longer at the border points in Birgunj, Bhairahawa and Biratnagar. If these vehicles avail of the services available at Chobhar Dry Port, they can do their business more efficiently.
What is the misconception about the GPS locking system?
Some business people find the GPS lock system problematic.
Vehicles passing through the southern border will have to use a GPS lock system if they want to use Chobhar Dry Port.
GPS lock system is necessary to prevent people who may not abide by the business norms from tampering with the goods they carry. But some businesses have argued that if anything goes wrong with the GPS lock system for reasons beyond their control, they will have to pay a fine of 200 per cent of the price of goods they carry in their vehicles. What the business community needs to understand is that the GPS locking system is a check and balance provision.
If any vehicle with a GPS locking system fails to keep the locking system intact due to circumstances beyond their control, an investigation would be launched before taking any decision on the matter. If a cargo vehicle has not deliberately tampered with the GPS locking system, it won't be penalised. Yet business people fear that they might be in trouble if anything happened to the GPS locking system.
We have held discussions withstakeholders, business community, and representatives of Kathmandu and Lalitpur metropolitan cities.
How can Chobhar Dry Port help businesses deal with issues related to parking, loading and unloading of the goods?
At present cargo vehicles unload their goods on the street which creates traffic problems and can even cause accidents. So these vehicles can use Chobhar Dry Port to unload goods. That will help avoid traffic congestion and other problems caused by unloading of cargo vehicles on the street. As Kathmandu and Lalitpur metropolitan cities are growing fast, there is shortage of space for industries to pack their goods. These businesses can use Chobhar Dry Port to pack their goods and load and unload because we have a huge facility for the same.
Chobhar Dry Port has modern infrastructure that can serve the intended businesses at least for 100 to 200 years without any problem.
Are you worried about the business prospect of Chobhar Dry Port?
Many people, including media outlets, have raised the issue.
They say that Chobhar Dry Port is not getting the expected amount of business.
While it's true that Chobhar Dry Port is not getting the expected amount of business now, that is not going to be the case in the future. People will understand the benefit of using this dry port and they will certainly use this infrastructure. The government built this dry port keeping in mind the fact that Kathmandu-Nijgadh fast track road will supplement its business.
Once this road is built, it will lessen the travel time to and from Birgunj and in that situation businesses will find it easy to use this infrastructure. Above all, the efficacy of any new infrastructure should be seen in the long run.
There may be full of vehicles on the newly built roads in big cities but if a new road is built in remote hill areas, such a road might not get too many vehicles initially. That does not mean that such a road is not useful. Benefits of infrastructure projects can be judged in the long run.
At least we have a very good infrastructure at Chobhar which I am sure will get good business in the long run. At present only two to three cargo vehicles are using Chobhar Dry Port. If we can get at least 50 vehicles, that will help us in our business. I have been talking to business houses, seeking their support. I will be holding more discussions in the future to get business.
How confident are you that Chobhar Dry Port will benefit people of Kathmandu valley who are involved in export of goods?
Our handicrafts and carpets have a good market in foreign countries and I think people involved in handicrafts and carpet export can use this dry port for the promotion of their business.
The government built Chobhar Dry Port with the aim of making Chobhar a hub of export and import in the capital city.
I am confident that this port will run to its capacity very soon as we have had many interactions with the stakeholders including Department of Customs, Kathmandu Metropolitan City, Lalitpur Metropolitan City, Kritipur Municipality, FNCCI, Traffic Police, truck association, transport associations, traders, Nepal Chamber of Commerce, CNI, Freight Forwarders' Associations and we are aware of their concerns, which we are working to manage.
The objective of this port is to also promote exports that will help to balance our trade deficit.
Business people now can export to the US, Germany, India and other countries directly from Chobhar.
A version of this article appears in the print on March 20, 2023, of The Himalayan Times.
