Sunday, January 17, 2016

Delivery of Nepal-bound containers yet to restart

Birgunj Chamber of  Commerce and Industry (BCCI) has said around 1,000 Nepal-bound cargo containers have been stuck at India’s Kolkata Port for over a week.
Earlier, the Kolkata Port authority had informed Nepali importers that loading of Nepal-bound containers, which was halted due to congestion, would resume by last Monday. However, the work has yet to restart, forcing the importers to pay high detention charges to shipping  companies.
“Traders have been forced to pay around Rs10 million per day in detention charges,” said BCCI President Pradeep Kedia.
If an importer fails to send back the containers to Kolkata within 14 days of the shipment, the trader has to pay $35-60 a day in demurrage fees to shipping companies.
About 36,000 cargo containers come to Nepal from third countries through the Kolkata port every year on an average. Half of them enter the country through the Birgunj dry port, while the rest come through Bhairahawa, Biragnagar and Kakarvitta.
A team of Nepali businessmen are scheduled to visit Kolkata to hold talks with shipping agents on demurrage and detention charges. “We have plans to hold a meeting with shipping agents on December 20,” said Rajan Sharma, president of Nepal Freight Forwarders Association (Neffa).
The team is led by Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Vice-president Dinesh Shrestha and represented by Birgunj Chambers, Biratnagar Chambers, and Neffa. Kedia said during their India trip, they would hold “serious” talks with officials of Indian customs in Kolkata.
Although shipments from Kolkata had increased after India relaxed its embargo on Nepal, the shipments have once again been halted for the past week.
Sharma said he had held talks with the officials of Container Corporation of India Ltd (CONCOR), the firm that handles railway freight to Nepal, and a director of Indian customs in Kolkata and requested them to resolve the problems at the earliest. “We are told the shipments would begin on January 11,” he said.
He said Nepali importers had been suffering due to “mismanagement of the railway service from both the CONCOR and Himalayan Terminal that operates the Birgunj dry port”. CONCOR is one of the shareholders of Himalayan Terminal.
As per the Railway Service Agreement between Nepal and India, CONCOR will handle Nepal-bound cargo through the Indian Railway.
Some railway racks carrying bulk cargo of MS billet, cooking oil, corn, and fly ash have arrived at the Dry Port, but containers have not come, said Kedia.
Administrative officer of Himalayan Terminal Ram Babu Sah claimed the shipments of Nepal-bound containers were affected by overcrowding at Kolkata port. “Containers of those who have paid the charges are coming to Nepal,” he said, claiming only 535 containers were stuck in Kolkata.
According to Laxman Basnet, executive director of Nepal Intermodal Transport Development Board, he was informed shipments of containers containing other goods had been delayed due to increased inflow of bulk cargo carrying fly ash, which is used in cement manufacturing.

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