December 13: As the country’s one and only dry port at Birgunj faces infrastructural crunch, importers are subjected to high transaction costs. Lack of upgrading of the physical infrastructure and technology at the dry port since the operational year in 2004 has led the importers to pay heavy fines to Indian Railways as well as the dry port operator - Himalayan Terminal Pvt. Ltd.  

Importers complained that lack of necessary equipment for loading and unloading the imported goods has caused delay in transport of goods from Raxaul and caused them to pay fines. According to importers, they are allowed two hours to finish their paper work and additional seven hours from unloading their goods. The railway company charges Rs. 150 for every hour of delay hence after. One of the importers complained that they are also compelled to pay separate fines to the shipping company for not being able to return the containers on time.

“The dry port operator charges us fine for the delay actually caused by them,” an importer complained requesting anonymity. 

According to coordinator of the Road Transportation and Transit Committee at FNCCI, Ashok Kumar Temani, it is likely that such fines annually translate into billions of rupees which increase their transaction costs. According to importers such increase in transaction costs eventually affects the consumers as price increases.

“One of the reasons for such delay is lack of sufficient cranes and reach stackers for loading and unloading goods”, Vice Chairman Kashiraj Upadhaya of Federation of Nepal Customs Agent said. On the other hand, Senior Officer at the Himalayan Terminal Finance Department Animesh Kumar Karna has refuted it saying that the dry port operator is fully equipped with cranes and the problem is actually caused by the existing narrow cargo management area and delays in its expansion.