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 : 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: . – 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 . . 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 (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 in , 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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