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Nepal Nepal in South Asia

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Transport Connectivity including Transit Facilitation in Southern Asia Country Presentation: Nepal Nepal in South Asia Nepal 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 (Rs. in millions ) Trade Country Export Import 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 * 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 Distance Asian SASEC SAARC land compensation has Description KM. Highway Corridor Corridor been distributed. No Birgunj- progress has been made Kathmandu- Kodari 297 AH42 No. 1 No.2 for a long time (almost a decade). Kakarbhitta- Brahmadevmandi 1027 AH02 No.5 No.4 Cross-Border Trading Points China NEPAL India Bangladesh 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 your time !!! .
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