Bihta ICDs first export shipment leaves for Russia

Bihar Takes a Big Step Forward with Its First Dry Port

Bihar has made history by opening its first dry port in Bihta, close to Patna. This dry port is set to transform the way goods are exported from the state, giving businesses better access to global markets.

Industries Minister Nitish Mishra launched the port’s first export—a shipment of leather shoes to Russia. This event marks a significant step for Bihar, a state that has long faced challenges due to being landlocked—meaning it has no direct access to a sea port. Until now, businesses in Bihar had to rely on distant ports in other states to export goods.

What Is a Dry Port and Why Is It Important?

A dry port is an inland facility that acts like a mini-port. Even though it is not located near the sea, it offers many of the same services as a seaport. It helps in:

• Storing goods
• Customs inspections
• Processing shipments

With a dry port, businesses no longer need to send goods to faraway sea ports for processing. This saves time and lowers costs for exporters.

There are two key types of dry ports:

1. Inland Container Depots (ICDs): Located far from coastal areas and handle large cargo shipments.
2. Container Freight Stations (CFSs): Usually located near seaports and focus on smaller shipments.

Most CFSs are found in western and southern parts of India, while ICDs are spread out across the northern region. In the eastern part of India, only West Bengal has a fair number of these facilities. Bihar’s new dry port aims to change that.

Why Does Bihar Need a Dry Port?

Being a landlocked state, Bihar faces difficulties in trade. Businesses must rely on ports located in other states like:

• Haldia (West Bengal)
• Visakhapatnam (Andhra Pradesh)
• Nhava Sheva (Maharashtra)
• Mundra (Gujarat)

These long distances increase transportation costs, making it harder for local businesses to compete in global markets. The Bihta dry port will allow Micro, Small, and Medium Enterprises (MSMEs) to export goods directly from Bihar, speeding up the shipping process.

How the Bihta Dry Port Will Help Businesses

The Bihta dry port covers seven acres and operates under a public-private partnership (PPP). It is managed by Pristine Magadh Infrastructure Private Limited in collaboration with Bihar’s industry department.

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This facility has been approved as an Inland Container Depot (ICD) by the Department of Revenue, Ministry of Finance. Businesses using this ICD will enjoy several benefits, including:

• Local customs clearance
• Direct shipment bookings
• 1% export subsidy under the state’s export policy, making goods more competitive in global markets.

Boosting Bihar’s Economy with Exports

In 2022-23, Bihar’s exports reached Rs 20,000 crore. However, most of these goods were shipped through other states’ ports. The new ICD will help Bihar increase exports by providing a local trade hub, directly benefiting the state’s economy.

Even though Bihar contributes 2.8% of India’s GDP, its share in India’s merchandise exports is only 0.05%. The state has great potential to improve its trade presence, thanks to its location close to important markets in South Asia and Southeast Asia, such as:

• Bangladesh
• Myanmar
• Bhutan
• Nepal

Future Plans: Special Economic Zones (SEZs)

The Bihta ICD is just the beginning. Earlier this year, the central government approved the creation of two Special Economic Zones (SEZs) in Bihar:

1. Kumarbagh in West Champaran district
2. Nawanagar

These SEZs will attract more businesses and help boost exports further.

Conclusion

The launch of the Bihta dry port is a turning point for Bihar. It offers local businesses better opportunities to grow, export goods, and compete globally. With the added advantage of SEZs and export-friendly policies, Bihar is taking firm steps toward becoming a major player in international trade.