Evaluating Connectivity Performance at Transit Transfer Facilities ...
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Transport Connectivity including Transit Facilitation in Southern Asia
Country Presentation: Nepal
Nepal
Nepal in South Asia
Nepal at a Glance
Situated between China and India
( Landlocked country)
147,181 sq km of area
Population as per 2011 Census: 26.62 millions
Birthplace of “Lord Buddha”
A Himalayan sangrila where 8 of 14 highest peaks on globe lies (altitude more than 8000 m, including Mt. EVEREST)
A mountainous country (only 17% of flat land)
National transport Policy Initiatives
the National Transport Policy, 1998 states
...........Cross border, regional and sub-regional transport and transit facilities shall be further developed and expanded.
.........New international airport as an International Hub shall be constructed with the arrangement of precision landing, landing and take-off entirely within own airspace, constructing of a parallel main runway, if necessary. Such airport shall act in the development of tourism and promotion of international air cargo services (trade).
..........Construction of existing rail services shall be expanded and developed in coordination with the Indian rail way service.
Cross- Border Transit Transport by
Land
Background and Transit Issues
◦ Nepal sandwitched between India and China lacks the access of seaport.
◦ deprives the competitive global business (absence of sea port) the extra transit cost, is high up to 40% in Nepal’s case that inflates the price of commedities in import and export.
◦ Afghanistan depends on the ports Pakistan and Iran for its overseas freight traffic whereas Nepal and Bhutan solely use Indian ports for their overseas trade:
◦ Nepal uses Kolkata port and Haldiya port and Bhutan uses Kolkata port.
Nepal's Trade Balance with Some South and
South- West Asian Countries in 2011/12
Country Export Import Trade
Balance
Afghanistan 97.88 0.29 97.58
Bangladesh 2,578 1,502 1,075
Bhutan 543 249 294
India 50,933 321,346 -270,413
Pakistan 225 266 -40
(Rs. in millions )
* Estimated
Sources: Nepal Rastra bank
Legal instruments for Cross- Border trade and Transit Transport
by Road
1. Bilateral Trade Agreement with:
Nepal – India Transit Treaty, 2006
Trade and Transit Treaty between Nepal and China
Nepal Bangladesh Transit Treaty, 1976
Transit right of LDC related UN conventions 1980, 1991 and 2001,
Trade and Transit right as managed in Law of Sea 1958, 1982
WTO, BIMSTEC,SAFTA (Nepal's bilateral Trade Agreement
between 17 countries and Nepal's accession to the WTO, April,
2004)
BIPPA agreement concluded with 10 countries including India
Double Taxation Avoidance Agreement (TAA) with India
2. SAARC Agreement on Mutual Administrative Assistance in
Customs Matters
Main Corridors for Cross-Border Transit Transport by Road
Trade and Transit by Road
India-Nepal: 27 Bilateral trading points in Indo-Nepal
border (Treaty of Trade)
China-Nepal: 3 international and 3 bilateral trade
point
Transit Route India and Bangladesh
Kolkota/Haldia Sea Port for 3rd country trade
connecting with 15 Nepal-India Routes
Phulbari-Banglabandh Transit to Bangladesh
Trade Corridors and Transport linkages
Roads along South to North sides-
◦ Raxaul(India)- Birgunj (Nepal)- Hetaunda- Narayanghat- Kathmandu- Tatopani
(China Border) AH42
◦ Kathmandu- Galchhi- Rasuwagadhi- Kerung
Mahendra highway
◦ 1027 km from Kakarbhitta border to Mahendranagar border (AH2)
◦ Missing link at the west Mahendranagar (Nepal)- Banabasa (India),
◦ Poor conditioned road in East side Phoolbari
Trading Points and Transport corridor
◦ 27 Trade & Transport Links along the border of Nepal and India
◦ 3 trade & Transport Links along the border of Nepal and China
• A missing link on the AH
2 exists. Connection
beyond Mahendra Nagar
via Brahmadev Mandi
through Tanakpur (India)
and Banbasa does not
exist.
• The Government of India
has taken inititiative to
support and construct this
portion of the alignment.
• The detailed design
works is complete and
land compensation has
been distributed. No
progress has been made
for a long time (almost a
decade).
Description Distance
KM. Asian
Highway SASEC
Corridor SAARC
Corridor
Birgunj- Kathmandu- Kodari 297 AH42 No. 1 No.2
Kakarbhitta- Brahmadevmandi 1027 AH02 No.5 No.4
Cross-Border Trading Points
Bangladesh
China
India
NEPAL
Regional Connectivity and possible transit Corridors of
Nepal
1. Asian Highway Network (East- west link Mahendra
Highway AH 02 and North – South link Kodari – Raxaul
AH 42).
1. North- South trade and transit corridors(future possibilities)
i. Mohana-Dhangadi-Ataria-Baitadi-Darchula-Tinker 415 Km
ii. Nepalgunj-Surkhet-Jumla-Hilsa-Yari-Purang 581 KM
iii. Bhairahawa-Pokhara-Jomsom-Lizhi 467 KM
iv. Birgunj-Galchi-Rasua-Syafrubesi 340 KM
v. Birgunj-Naubise-Kathmandu-Tatopani-Nyalam 393 KM
vi. Janakpur-Dolakha-Lamabagar-China border 295 KM
vii. Rani-Itahari-Hile-Kimathanka-China border 419 KM
viii. Kechana-Taplejung-Olangchungola 460 KM
SAARC Regional Multimodal Transport Corridors (SRMTC)
The identified SRMTC that have strong relevant and importance to Nepal:
I. Road corridor 2: Kathmandu-Birgunj-Kolkata-Haldia (1,323 km)
II. Road Corridor 4: Kathmandu Mongla and Chittagong via Fulbari Banglabandha
III. Road Corridor 7: Kathmandu-New Delhi-Lahore-Karachi (2,643 km)
IV. Road Corridor 10: Kathmandu-Bhairwhawa-Lucknow,
V. Rail corridor : Birgunj-Kokata/Haldia
VI. Rail corridor: Birgunj-Mongla/Chittagong via Katihar Rohanpur
Current Status of Cross-Border Operations of Freight and Passengers by Rail
Railway transit route from Nepal to Kolkata SAARC Rail Routes (Bangladesh)
•Jayangar in India to Janakpur 42 km old narrow gauge
•The Raxaul and Birgunj ICD in Nepal, a 5.4 km for
freight.
Cross-Border Operations for Freight
and Passengers by Rail 50% of the import in containers by rail from Kolkata to Birgunj.
Nearly 5% of import in containers arriving by rail at Raxaul originate from Chittagong.
While there is a rail link from Chittagong to Dhaka ICD, it is not possible to transit completely by rail to Nepal.
Legal Arrangements for Cross Border Rail
Operations
Nepal India Railway agreement in May 2004
Need to review in every 5 year
The existing railway agreement signed in 2004
allows limited movement of rail Cargo between
Birgunj ICD and Kolkata and Haldiya ports of
India.
Existing and Planned Railroad connectivity
I. Existing: Janakpur- Jayanagar Railway of 26 Km.
II. Under Construction: Bardibas-Simara section (108 km) of East west Rail Network.
iii. Under DPR:
East- West Electricfied railway traversing the country (945 Km)
Kathmandu – Tamsaria link
Kathmandu Pokhara link
6 connections with Indian Rail Network
Transport transit and facilitation measures
Facilities at the Border 27 traditional check post at border and five Inland Clearance Depots (ICDs) at:
◦ Birgunj (rail, India);
◦ Biratnagar (road, India);
◦ Bhairahawa (road, India);
◦ Kakadbhitta (road, India); and
◦ Tatopani (road, China).
• Feasibility study has been done for the construction of dry port in Sharalahi,
Rajbiraj, Gaur and Maheshpur Customs .
• Integrated check post construction in Birantagar, Birgunj, Nepalgunj and
Bhairawa customs under process.
Transport Facilitation Measures – Inland Container Depot
Proposed ICD
Key Challenges of Trade Facilitation and transit transport
in Nepal
Provision of multimodal transport facility
Investment in infrastructure hardware as well as software
Quality of roads and railways infrastructure and service
Gauge compatibility for railways
Border facilities including customs, infrastructure
Use of ICT in trade administration
Quality control/quarantine related issue
Illegal trade regulation
Thank you very much for
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