Rail cargo to Nepal peaks with support from Indian Govt

Posted by Daily Shipping Times on 06-12-2017        Tweet

KOLKATA: The Centre’s sustained focus to offer landlocked Nepal more efficient port and logistics options for third Country imports, has started yielding results.

According to RB Rauniar, Managing Director of the Kathmandu-based Interstate Multi-modal Transport Ltd, and the Nepalese partner of the Container Corporation (CONCOR) operated JV Himalayan Terminals at Birgunj, while turnaround time for imports through Kolkata reduced substantially, imports through Vizag Port is also picking up.

Significantly, the improvement is achieved despite major damage of the rail infrastructure — such as snapping of the key Darbhanga-Sitamari-Raxaul rail link during the devastating floods in North Bihar this August. The link was restored on November 25.

Problems in rail services notwithstanding, the Himalayan Terminal handled 40 rakes carrying 3,550 TEUs (twenty feet equivalent containers) in November. This is significantly higher than the average of 24-25 rakes a month and higher than the previous best of 30 rakes a month.

Vizag Port

Visakhapatnam Port surely has a contribution in this improved showing. India opened Visakhapatnam, parallel to Kolkata, for use of Nepalese importers early this year. However, importers had to wait till June before CONCOR could gather enough containers to run the first rake, at half the capacity of 90 containers, in June.

The situation improved marginally in August. But as in November, CONCOR ran four fully loaded rakes from Vizag to Birgunj, indicating increasing popularity of the service. According to sources, Nepalese lined up import of nearly 300 containers, mostly carrying pulses from Myanmar through Vizag in the coming months.

Interestingly, Visakhapatnam attracts higher rail freight as the distance from Birgunj is double to that of Kolkata. However, lower sea freight and higher efficiency, vis-a-vis Kolkata Port, is making Vizag cost-competitive to users.

Special permission

To solve the riddle, CONCOR took an initiative to load containers (parallel to the port), from its own terminal in Kolkata under special permission from customs. The importers, however, had to pay the trailer charges for carrying containers from the port to CONCOR terminal.

The net result is while 24 rakes were loaded from Netaji Subhash Dock of KoPT in November, an additional 12 rakes were loaded from the CONCOR facility — increasing the total rake arrival from Kolkata by 50 per cent. The pendancy rate at port is also down to 285 TEUs on December 1.