Investment of over Rs 2b at risk

TATOPANI, July 21: Sharp decline in imports of Chinese goods from Tatopani customs point has put investment of Rs 2.25 billion on truck and containers on a serious risk.

Container operators, who have been contributing as much as Rs 200 million in revenue to state coffer every year, said sharp drop in imports have forced them to leave their vehicles in garage and parking lots. They argued that current volume of imports was not generating enough business to meet their operating cost.

“The decline in imports has pushed about 1,000 containers ferrying goods via Tatopani customs to Nepal off the roads. Our investment is facing a serious risk,” Arjun Sapkota, first vice president of Nepal Truck Container Operators´ Association, told myrepublica.com.

About 960 containers are affiliated with the association. Sapkota said investors have spent about Rs 1.8 million to Rs 2.2 million for each container.

Because of geographical difficulties of tightening of revenue leakages, imports from Tatopani customs -- the largest overland trading point with China - dropped in the last fiscal year. The number of containers operating on the route, however, went up in 2009/10, according to the association.

The drop in imports has seriously affected returns for the operators. As if it were not enough, the association introduced a dial system on the route from last year, stating that it system was necessary to manage the traffic and ensure business for all. However, the system leaves container operators with no other options but to wait for months to get their turns.

“Even during peak season, we need to wait for more than a month for our turn. During off-seasons, we get to operate once in every three or four months,” said a container operator.

Taking note of the situation, the association has raised the cost of transporting goods from Khasa to Kathmandu at Rs 75,000 per trip.

“The fair that we get isn´t enough to meet fuel and other operational costs,” said Khilaraj Giri, a container operator. He said majority of their income goes to pay salary for staffers and payment of loans and installments to banks. “We need to spend from our pocket to pay for repair and maintenance of the container,” he added.

The number of containers plying on the route has increased by 460 from 500 over the period of two years.

Container operators used to collect as much as Rs 250,000 per trip a few years ago by imposing syndicate system. But they were forced to break the syndicate system and lower transportation fare following government intervention.

“We are practicing dial system to manage traffic along the highway. If all of our containers are allowed to ply on the route, the traffic would be simply unmanageable,” Sapkota said.

Host of problems like complicated system in Chinese administration, lack of proper infrastructure, growing insecurity and extortion have diverted local businessmen to other sectors, leading to drop in trade through that customs by over 50 percent.

Source: http://www.myrepublica.com/portal/index.php?action=news_details&news_id=21289