Nepal improves efficiency of trade logistics
KATHMANDU, March 25:
Nepal has made significant improvement in the past two years in terms of trade logistics´ efficiency, according to the latest data of the World Bank.
Nepal has scored 2.59 points on the 2014 Logistic Performance Index (LPI) of the World Bank and ranked 105th among 160 countries.
LPI is the weighted average of the country scores on six key dimensions.
Nepal was ranked 151st in 2012 with score of 2.04, compared to 141st position in 2010 with the score of 2.2.
The index ranges from 1 to 5 with a higher score representing better performance.
According to the World Bank, the dimensions that are considered during the surveys to calculate the weighted average of the country for the LPI are efficiency of the clearance process of the customs, quality of trade and transport related infrastructure and ease of arranging competitively priced shipments. Likewise, competence and quality of logistics services, ability to track and trace consignments and timeliness of shipments in reaching destination within the scheduled time are the other factors which are taken into consideration during the LPI survey.
According to the World Bank, Nepal has been placed among top 10 low-income performers on the LPI. Nepal is above Burundui and Bangladesh in the list of top 10 low-income performers.
Former Commerce Secretary Purushottam Ojha said the country´s outstanding performance over the past two years on improving the performance on trade logistics would help disseminate positive message in the international market. “This progress in the LPI means that we have achieved cumulative improvement in various fronts including the development of transport and trade infrastructure, easing the clearance process, reform at the customs, and quality of the logistics services, among others. This will help to create business environment in the country when we are talking about attracting the foreign direct investment,” the former bureaucrat said.
Among the six variables, Nepal scored the highest in the timeliness indicators with score of 3.06, up from 2.21 in 2012. This was followed by tracking and tracing with 2.72 scores against 1.95 in 2012. However, the country did not make huge improvement in the customs front. The indicator received 2.31 scores in 2014 compared to 2.2 scores in 2012. Similarly, Infrastructure, International Shipments and Logistics Competence were marked 2.26, 2.64 and 2.50 scores, respectively. These sub-indicators had received 1.87, 1.86 and 2.5 scores in 2012.
Germany tops the list of 160 countries with 4.12 scores while Somalia is at the bottom with 1.77 scores.
Source: Republica
