Yes, it is but you can't tell it's leaking by looking at it there. The vulcanized o-ring attached to the OE tube starts coming off and that is what causes the leak.

Being that the tube is 1 piece you need to cut it out. Then use an expandable replacement like the one from All German Auto in Escondido, CA. That's what I installed and not an issue since. A bit of work but not too drastic. They even have a good video and instructions on their site. 11-14-1-439-975 BMW N62 Coolant Pipe | AGA Tools

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'01 740i Sport MKIV, Quad Brake Lights, Bi-Xenon retrofit, HID Fogs Dinan 7 Struts, Springs, camber plates, Intake, MAF, CAI, Throttle Body, NBT Retrofit, Strong Strut


'99 318ti Titanium Silver; '97 318ti Boston Green; '13 X5 3.5i Saphire Black Metallic
'84 633csi Black (sold); '88 325iC Black (sold); '97 740iL Black(sold); '01 740iS Black (sold);'97 318ti White (sold); '08 X5 4.8i Titanium Silver (sold); '96 318ti Alaska Blue (sold)