Dry ports are inland freight terminals connected to seaports by rail or road that offer logistics services for importing and exporting goods. They aim to increase seaport capacity and reduce congestion. Services at dry ports include container storage and handling, customs clearance, and freight forwarding. Bonded warehouses located at dry ports allow importers to store goods until duties are paid, facilitating trade and avoiding immediate payment of duties. Major dry ports in Pakistan include Lahore, Karachi, Quetta, Peshawar, Multan, and Rawalpindi.

1. Dry Port Bonded Warehouse
Presented BY:
Noor Alam

2. Definition
A dry port is a freight terminal situated in the hinterland servicing an industrial
/ commercial region connected with one or several ports with rail or road
transport and is offering specialized services between dry port and overseas
destinations. Normally dry port is container and multimodal oriented and has
all logistics services and facilities, which is need for shipping and forwarding
agents in a port.

3. Functions of Dry port
• Direct and easy connection to the port by rail or road
• Intermodal connection
• Custom clearance services

4. Services Provided
• Container handling and storage
• Container stripping and stuffing
• Breakbulk cargo handling and storage
• Bulk cargo handling and storage
• Customs inspection and clearance
• Container light repairs
• Freight forwarding and cargo consolidation services
• Banking insurance / financial services

5. Location
Usually remote from seaport(s), but close to trade sources
Example:
Pakistan Lahore (1,220 km by rail from Port of Karachi

6. Benefits of Dry Port
• Increases seaport capacity
• Increases seaport productivity
• Reducing congestion at seaports
• Reducing congestion in seaport cities
• Reducing risks of seaport accidents
• Reducing road maintenance cost
• Lower environmental impact
• May serve as a depot

7. Dry Ports in Pakistan
At present, there are six dry ports running under the management of Pakistan
Railways;
• Lahore Dry Port Established in 1973
• Karachi Dry Port Established in 1974
• Quetta Dry Port Established in 1984
• Peshawar Dry Port Established in 1986
• Multan Dry Port Established in 1988
• Rawalpindi Dry Port Established in 1990

8. Bonded Warehouse
Secured facility supervised by customs authorities, where dutiable landed
imports are stored pending their re-export, or release on assessment and
payment of import duties, taxes, and other charges. Also called customs
warehouse.

9. Why Importers used Bonded
warehouses
• He does not has his own godown
• He may not be able to pay custom duties immediately
• He wants to re-export the imported goods for entrepot trade

10. Advantages
• The goods are stored in bonded warehouse without payment of custom
duties. The goods are stored till the importer is able to arrange for the
payment of import duty. Because of this facility the importer is saved from
the payment of heavy duty at a time
• Warehouse facilitates the conduct of various operations which make the
goods suitable for marketing. the importer is permitted to divide, mix and
pack the goods when these are kept in the warehouse
• It facilitate re-export of goods without much financial expenditure because
the imported goods meant for re-export are kept in the warehouse.

11. Advantages (Cont.)
• The owner of the goods is allowed to brand, grade, label and pack the
goods when these are in bonded warehouses. By this provision, it
facilitates proper marketing of goods.
• Goods kept in bonded warehouse are used as collateral security for bank
loan
• Goods kept in bonded warehouse are safe and are free from the fear of
being stolen or damaged.