Dry Port Policies and Activities
Bhimlal Suberi, MoIC Sonam Gyaltshen,MoEA Outline
I. Country Facts: a) Transport – International Connectivity b) Cross-Border Traffic Movement II. Policy and Legislation III. Progress on Development of Dry ports in Bhutan: a) Mini Dry Port (MDP) in Phuentsholing b) Objective of the Dry Port IV. Challenges I. Country Facts
Landlocked Least Developed Country Land Area : 38,394 sq. km Population : 768, 577 (2016) Border length: . India – 699 km . China – 470 km GDP real Growth Rate : 6.49% (2015) GDP per capita : 2,719 USD (2015) Trade Openness Index : 80% (2015) Total Road Network : 11,177 km (June 2016) No rail transport, no inland water transport and no dry port Four major trade routes: . Phuntsholing . Gelephu . Sandrup Jongkhar . Samtse.
(a) Transport – International Connectivity
International Airport (Paro) - 1 No. Domestic Airports - 3 Nos.(Bumthang, Yonphula, Gelephu) Nearest international seaport - Kolkata, India (750 km by road from Phuentsholing, Bhutan) Nearest railway stations from Bhutan:
Rangia, Bongaigaon, Kokrajhar (Assam, India)
Hashimara, Alipurduar,
New Jalpaiguri (W.Bengal, India) (b) Cross-Border Traffic Movement
Being landlocked, sub-regional, regional and international connectivity by land transport is possible through India only, including transit to Bangladesh and Nepal Phuentsholing near Jaigaon in West Bengal, India is the main gateway for international trade (over 82%) About 55% import and 94% export takes place with India Trade with other countries within the SAARC region is marginal Sea ports in India (Kolkata and Haldia) are the main Maritime gateways for international trade with other countries other than Nepal and Bangladesh II. Policy and Legislation
The Royal Government shall pursue the establishment of dry ports and warehousing facilities at all major exit points in Bhutan The development of integrated cross border trade facilities such as dry ports, pre-shipment Customs clearance facility, computerized security checks and quarantine facilities shall be pursued. Develop inland container depots or dry ports including railway links together with supporting facilities such as Customs, immigration, quarantine etc. at the border crossings. To enhance quality of transport services, connectivity to seaports in India, Bangladesh and to the Asian road network as a strategic part of the country’s transportation network. II. Policy and Legislation……Contd
11th Five Year Plan (2013 – 2018) Annual Performance Agreement Economic Development Policy 2016 Sales Tax, Customs & Excise Act of the Kingdom of Bhutan 2000 Agreement on Trade, Commerce and Transit between the Royal Government of Bhutan and the Government of the Republic of India 2016 Agreement on South Asian Free Trade Area (SAFTA) Declaration of the Transport Ministers Inter-Governmental Agreement on AH, TAR, Dry Port III. Progress on Development of Dry Ports in Bhutan
Mini Dry Port (MDP) in Phuntsholing with financial support of the ADB under the South Asia Sub-regional Economic Cooperation (SASEC).
Dry Ports planned: Pasakha Gelephu Samdrup Jongkhar (a) MDP in Phuentsholing Locality Plan of Phuentsholing Mini Dry Port Feasibility Study Conducted in 2013 Design and Build Contract awarded in April 2017 – Project duration of 20 months Cost estimate: US $ 2.5m (US $ 1.65 for construction) Area : 5.4 Acres 3 - Zones: . Generalized cargo area (South) . Administrative area (Center) . Container area (North) 10,385 TEU p.a (5000 TEU initial demand and 20% growth p.a.). Layout Plan for Phuentsholing Mini Dry Port (b) Objective of MDP
To establish a dry port facility equipped with appropriate cargo handling and storage facilities under Customs control, with associated capabilities for clearing and forwarding goods, warehousing, transshipment, transit, etc. To facilitate Customs Clearance and the collection of duties and taxes Address traffic congestion in the city center and enhance road safety
IV. Challenges
Lack of adequate resources (Capital, Land and Manpower) Lack of appropriate construction technology High construction and maintenance cost
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