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Chobhar Dry Port sees increase in imports but no exports

Despite having the necessary infrastructure and workforce, traders prefer other entry points due to convenience, according to officials from the Nepal Intermodal Transport Development Board which handles the dry port.
By REPUBLICA

KATHMANDU, March 23: The Chobhar Dry Port, launched with high expectations, has yet to yield significant results. While imports have increased in recent months, the facility has failed to facilitate any exports. Three years after its inauguration, imports through the port have improved slightly.


According to customs data, imports through the port increased by Rs 200 million in the first eight months of the current fiscal year compared to the same period last year. However, this figure remains far below initial projections. When the port was inaugurated in March 2022, it was expected to handle trade worth over Rs 3.5 billion annually.


 In its first four months of operation, goods worth Rs 98.8 million were imported through the port. The following fiscal year, imports surged to Rs 642.3 million, while exports amounted to just Rs 14.4 million.


However, except for one fiscal year, the port has not processed any exports since its establishment.


In the first eight months of this fiscal year, imports worth Rs 859.7 million were recorded through the dry port, compared to Rs 6.53 billion in the same period last year.


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Despite its strategic location within the Kathmandu Valley, a major import hub, the port has not achieved the expected trade volume.


While there were plans to clear containers arriving in Kathmandu directly at Chobhar, most shipments continue to be processed at border customs offices before reaching the valley.


Currently, Chobhar Dry Port ranks 18th among Nepal’s key import entry points


Despite having the necessary infrastructure and workforce, traders prefer other entry points due to convenience, according to officials from the Nepal Intermodal Transport Development Board which handles the dry port.


Importers in Kathmandu face logistical challenges in transporting goods from border customs offices to Chobhar and then redistributing them within the city. The dry port is linked to the under-construction Kathmandu-Terai Fast Track, and its full potential is expected to be realized only after the expressway becomes operational.


The port was envisioned as a solution to ease congestion at major border customs offices, which handle most of Nepal’s trade with India and third countries. However, businesses have not fully embraced it, as customs data indicate minimal usage. While daily shipments continue to overwhelm customs points at Birgunj, Bhairahawa, and Biratnagar, the Chobhar facility remains underutilized.


In contrast, other dry ports in Nepal facilitate billions in foreign trade annually. Spread across 220 ropanis, the Chobhar Dry Port was completed in October 2021 despite delays caused by the COVID-19 pandemic. Although construction was awarded in May 2018, the foundation stone was laid eight months later in January 2019, following protests by the locals.


The port has a capacity similar to that of the Tatopani Dry Port, with parking space for 500 containers and 500 trucks. It includes customs offices, warehouses, banking and financial service facilities, and administrative buildings.


The customs section of the dry port handles customs clearances, while the internal terminal provides space for vehicle offloading, parking, warehousing, packaging, and leveling. Due to the low volume of customs transactions, authorities have begun leasing storage space to industrial enterprises.


 


 

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