January 13: Nepali importers have complained that the transportation cost has skyrocketed all of a sudden after the dusty cargo coming through the Birgunj-Raxaul Friendship Bridge was diverted to the Nepal-India Integrated Checkpoint (ICP).

The importers argue that their cost has increased due to the Raxaul yard of the Indian Railways and the ICP, traffic congestion, extra time incurred for transportation, increased parking fee and other expenses.

A study conducted by the Birgunj Chamber of Commerce and Industry states that the transportation cost has increased by Rs 2.23 million per rail rake. One rake can hold up to 3,600 tons of cargo.

On this basis, the transportation cost per ton has increased by Rs 619, according to the vice president of Birgunj Chamber of Commerce, Madhav Rajpal.

To fully operate the ICP, which has been in operation since 2016,

Nepal and India had jointly decided to redirect the dusty cargo to the ICP in order to ensure that the ICP operates in optimal capacity. The ICP has been operational since 2016. The dusty cargo has not entered Nepal through the old route of Birgunj since January 1.

Goods like raw materials for cement and iron industry, slag, iron ore, coal, fertilizer and salt used to be imported through the old customs. Now all those cargoes have to be imported through the ICP.

Kamal Gyawali, Birgunj head of Nepal Intermodal Transport Development Committee, informed that lane number 10 of the ICP towards Nepal has been set aside to bring in dusty cargo.

The importers complained that they were forced to go to the ICP although it is ill-prepared in terms of infrastructure to allow in the dusty cargo. Vice President Rajpal said that the biggest problem is the link road connecting Raxaul Yard and the ICP.

Rajpal alleged that the Consulate of India in Birgunj had sent a report to his government that there was no problem on the link road, and based on that report, the imports were diverted to the ICP.

Shashi Bhushan Kumar, the consul general of the Indian Consulate, said that all types of transport vehicles, large and small, were tested on the link road, and after it was found that the cargo could be transported, the cargo was sent to the ICP.

According to Kumar, the problems seen during transportation will be resolved gradually.

He also said that the infrastructure built by spending billions of rupees should be fully utilized to make import and export effective.

Rajpal complained that a separate dedicated lane for dusty cargo within the ICP is not yet available. Even though there is no parking in ICP, such a fee is charged. “The goods and services tax is also collected in the ICP towards India. Such a tax cannot be levied on cargo that regularly comes to Nepal,” said Rajpal.

The importers argue that the ICP should charge only the nominal entrance fee as it failed to provide parking facility.

The importers say that earlier one truck used to transport dusty cargo for three to four times a day, but now it is difficult to even manage on lot in a day. Currently, at least 30 rakes of Nepal-bound dusty cargo arrive in Raxaul every month. The importers claimed that even ten rakes cannot be transported after the dusty cargo was diverted to the ICP. Rajpal claimed that since transportation by rail takes more time and cost, importers may now transport goods on Indian trucks.