Transshipment agreement in three months: Indian envoy

KATHMANDU, July 30:

India has agreed to provide transshipment facility to Nepal within three months.

Speaking at a program organized by the Nepal Freight Forwarders Association (NEFFA) to celebrate 20th Cargo Day in Kathmandu, Indian ambassador to Nepal Ranjit Rae said India will provide transshipment facility to Nepal within three months. He also expressed commitment to finalize transshipment modality soon.

Transshipment refers to shipment of goods to an intermediate destination before forwarding them to the final destination.

Nepal had proposed India for the facility during the visit of Indian External Affairs Minister Sushma Swaraj last week.

Nepal has long been proposing India to recognize Inland Container Depot (ICD) in Birgunj as an international port location. The issue was raised during Swaraj´s visit as well.

In the absence of transshipment facility, Nepali exporters and importers have to issue necessary documents from Kolkata port in India which is full of hassles and time consuming.

“The Birgunj ICD is not yet on the map of international port,” a high-level official at the Ministry of Commerce and Supplies (MoCS), told Republica, adding, “Once we sign transshipment agreement with India, the international community will recognize Birgunj ICD as an international port location.”

Once Birgunj ICD gets recognition as an international port location, Nepali exporters need not go all the way to Kolkata to get shipping documents. They can get the required documents at India´s Raxaul customs point.

Likewise, Nepal-bound cargoes from third countries will be delivered directly to Birgunj dry port instead of Kolkata. As of now, the imports from third countries are being delivered to Nepal through bills of lading from Kolkata.

Once the transshipment agreement is signed, it will reduce the existing difficulties in the documentation process, according to cargo entrepreneurs.

Rae also said the Indian side was ready to sign the letter of exchange (LOE) of the railway agreement which covers the operationalization of the Visakhapatnam port that India agreed to open for Nepal in 2009.

Few other LOEs for operationalization of Rohanpur-Singhabad rail line and Phulbari- Banglabandha road (52 kilometer) over Indian territory for boosting trade relation with Bangladesh are also pending.

Speaking at the program, Pradeep Jung Pandey, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) underlined the need to sign pending LOEs at the earliest.

Talking about hassles that exporters have been facing at Kolkata port, NEFFA President Rajan Sharma said freight forwarding procedure at Kolkata port was time consuming and expensive as well as full of hassles. “We face various problems like non-availability of engine for train. This shows that the Indian Railway is giving low priority to transport our cargoes,” he added.

Source: Republica