Kakarbhitta dry port to see light of day by year-end, cost escalates

The cost of Kakarbhitta dry port is escalating due to delay in its completion as it is unlikely to be operational before the end of this year.
Earlier, the target was to get it up and running by mid-2009.
“The six-month delay can be attributed to last year’s Kohsi flood fury coupled with slight modification in the original plan. The extension of the timeframe will lead to an additional expense of around 10 per cent,” explained Sarad Bikram Rana, executive director, Nepal Intermodal Transport Development Board (NITDB).
The nation’s fourth dry port at Kakarbhitta -- The Kakarbhitta Inland Clearance Depot (ICD) -- on the Nepal-India border in the eastern region is being bankrolled by the Asian Development Bank (ADB). As per the preliminary estimate, Rs 300 million was required for the ICD’s construction and development. The NITDB will assume its responsibility once it is deemed fit for use.
“Protocol demands that the ICD be given on lease while complying with international bidding norms. The bid document has already been prepared to that effect. It is awaiting the customary nod from the steering committee, which is likely to give the finishing touches in the next meeting,” said Rana.
The much-touted Public-Private Partnership (PPP) will form the basis of the operation and maintenance of the dry port. A private operator will be roped for the smooth running of the Sub-regional Transport Facilitation project, which aims to boost trade not only with New Delhi but also Dhaka.
At present, the country boasts of three dry points — located at Birgunj, Biratnagar and Bhairahawa. All of them have been leased out for 10 years to various Nepal-India joint ventures.
The government has also launched the Nepal Multi-model Transit and Trade Facilitation Project at an estimated cost of $28.5 million. The World Bank has pledged $23.5 million for the initiative.
Meanwhile, the ADB is willing to aid similar sub-regional ventures. Preparation for the next round of trade and transit facilitation project has already begun in earnest. However, the government’s role is vital to future projects.
The ADB has hinted at providing assistance for the proposed fifth ICD at Tatopani.
Nepal, a land-locked nation, is in dire need of dry ports. Trade can only flourish if there are adequate facilities for multi-model transport (where container seals can remain unbroken despite being moved from one place to another, irrespective of the inhospitable terrain).