Bhimlal Suberi , MoIC

Sonam Gyaltshen,MoEA

Dry Port Policies and Activities

Outline

I. Country Facts:

a) Transport – International Connectivity

b) Cross-Border Traffic Movement

II. Policy and Legislation

III. Progress on Development of Dry ports in

Bhutan:

a) Mini Dry Port (MDP) in Phuentsholing

b) Objective of the Dry Port

IV. Challenges

I. Country Facts

Landlocked Least Developed Country

Land Area : 38,394 sq. km

Population : 768, 577 (2016)

Border length:

India – 699 km

China – 470 km

GDP real Growth Rate : 6.49% (2015)

GDP per capita : 2,719 USD (2015)

Trade Openness Index : 80% (2015)

Total Road Network : 11,177 km (June

2016)

No rail transport, no inland water

transport and no dry port

Four major trade routes:

Phuntsholing

Gelephu

Sandrup Jongkhar

Samtse.

(a) Transport – International Connectivity

International Airport (Paro) - 1 No.

Domestic Airports - 3 Nos.(Bumthang, Yonphula, Gelephu)

Nearest international seaport - Kolkata, India (750 km by road

from Phuentsholing, Bhutan)

Nearest railway stations from Bhutan:

Rangia, Bongaigaon, Kokrajhar (Assam, India)

Hashimara, Alipurduar,

New Jalpaiguri (W.Bengal, India)

(b) Cross-Border Traffic Movement

Being landlocked, sub-regional, regional and international

connectivity by land transport is possible through India only,

including transit to Bangladesh and Nepal

Phuentsholing near Jaigaon in West Bengal, India is the

main gateway for international trade (over 82%)

About 55% import and 94% export takes place with India

Trade with other countries within the SAARC region is

marginal

Sea ports in India (Kolkata and Haldia) are the main

Maritime gateways for international trade with other

countries other than Nepal and Bangladesh

II. Policy and Legislation

The Royal Government shall pursue the establishment of dry

ports and warehousing facilities at all major exit points in Bhutan

The development of integrated cross border trade facilities such

as dry ports, pre-shipment Customs clearance facility,

computerized security checks and quarantine facilities shall be

pursued.

Develop inland container depots or dry ports including railway

links together with supporting facilities such as Customs,

immigration, quarantine etc. at the border crossings.

To enhance quality of transport services, connectivity to seaports

in India, Bangladesh and to the Asian road network as a strategic

part of the country’s transportation network.

II. Policy and Legislation……Contd

11th Five Year Plan (2013 – 2018)

Annual Performance Agreement

Economic Development Policy 2016

Sales Tax, Customs & Excise Act of the Kingdom of Bhutan

2000

Agreement on Trade, Commerce and Transit between the Royal

Government of Bhutan and the Government of the Republic of

India 2016

Agreement on South Asian Free Trade Area (SAFTA)

Declaration of the Transport Ministers

Inter-Governmental Agreement on AH, TAR, Dry Port

Mini Dry Port (MDP) in Phuntsholing with financial support of the ADB

under the South Asia Sub-regional Economic Cooperation (SASEC).

Dry Ports planned:

Pasakha

Gelephu Samdrup Jongkhar

III. Progress on Development of Dry Ports in Bhutan

(a) MDP in Phuentsholing

Feasibility Study Conducted in

2013

Design and Build Contract

awarded in April 2017 – Project

duration of 20 months

Cost estimate: US $ 2.5m (US $

1.65 for construction)

Area : 5.4 Acres

3 - Zones:

Generalized cargo area

(South)

Administrative area (Center)

Container area (North)

10,385 TEU p.a (5000 TEU initial

demand and 20% growth p.a.).

Locality Plan of Phuentsholing Mini Dry Port

Layout Plan for Phuentsholing Mini Dry Port

(b) Objective of MDP

To establish a dry port facility equipped with

appropriate cargo handling and storage facilities under

Customs control, with associated capabilities for clearing

and forwarding goods, warehousing, transshipment,

transit, etc.

To facilitate Customs Clearance and the collection of

duties and taxes

Address traffic congestion in the city center and

enhance road safety

IV. Challenges

Lack of adequate resources (Capital, Land and

Manpower)

Lack of appropriate construction technology

High construction and maintenance cost

THANK YOU!