What is a dry port?

The Telangana government has signed an MoU with a high-powered industrial delegation from China to get technological and logistics help for setting up a dry port in the State.

The State government has earlier petitioned the Centre for dry ports since it has no sea coast. Shipping Minister Nitin Gadkari is reported to have suggested that the State could consider either a riverine or dry port and connect them to the nearest port in Andhra Pradesh.

Various place names like Patancheru near Hyderabad, Warangal, Kottur in Mahbubnagar district, Armoor in Nizamabad district etc are being cited as possible locations for dry ports in Telangana.

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. Dry ports are generally located where good rail and road connectivity is possible.

This will help cut transport costs and transit time, spurring investment in the surrounding areas. Dry ports in the landlocked States can play an equivalent role as sea ports for intra-regional trade.

As we know, a sea port is situated near sea. If the importer or exporter is far away from sea port, it will be an inconvenience to co-ordinate and handle the goods properly.

So the government has allowed CFS (container freight station) to handle export and import formalities under customs supervision.

The cargo will be moved by rail or road from the sea port to CFS. Such CFS can be located in dry ports which are to be equipped for handling and temporary storage of containerized cargo as well as empties.

This means that hinterland customers can receive port services more conveniently closer to their premises. The exporter can complete customs formalities in CFS and ship the goods without moving cargo to sea port.

Thus a dry port is an inland terminal directly connected by road or rail to a seaport and operating as a centre for the transshipment of sea cargo to inland destinations.

The location of these facilities at a dry port relieves competition for storage and customs space at the seaport itself.