KATHMANDU, Jan 16: The government has decided to construct a dry port on the land belonging to Langtang National Park near Rasuwagadhi customs point in the northern part of the country.
The decision was taken on Tuesday during a meeting held between secretaries of the Ministry of Commerce and Supplies (MoCS), the Ministry of Physical Planning, Works and Transport Management (MoPPWTM) and the Ministry of Forest, and a joint secretary of the Ministry of Finance.[break]
"As most of the area selected for the construction of the proposed dry port lies in Langtang National Park, we have decided to request the forest ministry to take necessary initiative to transfer the land for development of the port," Tulasi Prasad Sitaula, secretary of the MoPPWTM, told Republica. Sitaula also said the government is planning to acquire as little land from individuals to minimize the port development cost.
If the plan takes off, the dry port in Rasuwagadhi would be the second in the country´s north. The first dry port in the north, which is being constructed in Larcha of Sindhupalchowk, is expected to come into operation after two years.
As of now, the government has decided to build the Rasuwagadhi dry port at Timure, located around one and half kilometers from the existing customs at Rasuwagadhi. However, the exact area of land required to build the dry port is not known.
The meeting held on Tuesday also decided to mobilize funds from donors for the project, which will be equipped with Integrated Check Post (ICP) to facilitate bilateral trade with China, the world´s second largest economy.
China has already expressed interest in helping Nepal build the port at the second largest customs in the north after Tatopani customs to support Nepal´s foreign trade.
"Although the meeting did not take any decision on donors that would be approached, Chinese support will be crucial for construction of the proposed port," Sitaula said, adding, the process of looking for donors "will go simultaneously with the land acquisition process."
It is said successful operation of the port would place Nepal in a better position to reap benefits in trade with the northern neighbor.
Nepal has been suffering huge trade deficit with the Asia´s largest economy due to the country´s weak export base and poor trade infrastructure. Data compiled by the Trade and Export Promotion Center shows Nepal´s trade deficit with China widened to Rs 51.94 billion during 2011/12, up from Rs 44.89 billion recorded a year earlier.
Although China has announced to provide duty free access to 7,787 goods originated in the Least Developed Countries (LDCs), including Nepal, the country is not in a position to supply more than 400 goods due to weak supply capacity and lack of infrastructure.
Rasuwagadhi dry port construction to begin after four months