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!