Centre mulls cross-border pact focusing on Asia
The Union government is considering a pact with neighbouring countries for development of dry ports, to global standards. The United Nations Economic and Social Commission for Asia and the Pacific (Unescap) is trying to help Asian countries reach an agreement.
A dry port is an inland terminal directly connected by rail or road to a sea port, providing services for handling, temporary storage, inspection and customs clearance for international freight. India has 155 places so notified, with 89 in the development stage.
In the north, Tughlakabad (Delhi) and Dadri (Uttar Pradesh), already functioning as inland container depots (ICDs), could be integrated with dry ports in Pakistan. Similar integration could be had for Mulund in Mumbai and another in south Bangalore. “Such ports will be connected through roads and railways, resulting in development of infrastructure in these corridors. This will bring down cost for traders and provide them greater access to international markets, thereby increasing trade,” a finance ministry official told Business Standard.
Dry ports are usually located where networks of different transportation modes converge. This reduces transport costs and transit time, spurring investment in the surrounding areas.
Unescap says for geopolitical and historical reasons, the Asia-Pacific region has been better connected with Europe and North America than with itself. With the deepening of economic integration in the region in recent years, dry ports in the landlocked countries can play an equivalent role as sea ports for intra-regional trade.
Some countries in Asia such as China, India, Malaysia, South Korea, Russia and Thailand have established functioning dry ports. In India, the Container Corporation of India has put in place a network of 59 ICDs, of which 49 are export-import depots. These customs-bonded ICDs are dry ports in the hinterland and provide all port facilities to the customers. The terminals are mostly linked by rail.
Dry ports can also help reduce carbon dioxide emissions. Unescap had calculated that the Birgunj inland depot in Nepal, through dry port operation and rail connection, had resulted in reduction of such emission of almost 58,000 tonnes-equivalent in 2008-2009. The Birgunj depot handles containers transported between the dry port and the Kolkata/Haldia ports in India.
