Train in Birganj, ICD Finally Open

The Birganj dry port  (inland container depot-ICD) was officially inaugurated on the 16th of July, 2004, after nearly one year and seven months of lingering over it by Nepali and Indian governments. Though its construction works were completed in December 2002, all the other activities for the operationalisation of the port could not move ahead as Nepal and India were not able to finalise the railway treaty needed to make a legal framework for the operation of railway into Nepal. It was only recently that both the countries finalized and signed the agreement.

The 75-coach container train with the number plate 18631 of the North Central Railway of India entered the ICD at 10:30 AM on July 16 (carrying flour provided to Nepal under the World Food Program), nearly 48 hours after it was flagged off from Kolkata. Under the road transport, a truck takes about seven days to reach Birganj from Kolkata. 

Dinesh Chandra Pyakurel, Secretary of Industry, Commerce and Supplies, who was at he ICD to welcome the first ever train to enter the facility amidst a gathering of excited locals, businessmen and government officials, expressed hope that the new development will help improve Nepal’s competitiveness in the international market by improving the efficiency in the goods transport from the nearest sea port to Nepal border.

Indian Consul General at Birganj C Gururaj Rao described the event as a milestone in Nepal-India relations.

Also the local business community is euphoric. Om Prakash Rungata, the president of Birganj Chamber of Commerce and Industry (BjCCI) says that the day marked the beginning of Birganj’s renewed prosperity. Sanjay Giri, a local hotelier, hopes that with the ICD now operational the hotels there would soon start doing a good business. “There will even start a spate of expansion in the hotel capacity of existing hotels and opening up of new hotels,” he adds.

The railway transport is expected to be nearly 40% cheaper than road transport. Moreover, the operationalisation of the railway service and the dry port will also help Nepal to utilize the Kandla port (near Bombay) that India had agreed to allow Nepal to use several years ago. It is practically impossible for Nepal to use the Kandla port by carrying goods there by roadways due to the distance.

The Birganj dry port was constructed with an investment of Rs. 760 million provided as loan by the World Bank loan. A 5.3 km long railway track connecting the port with Raxual railhead in Indian border town was constructed by the Indian government.

Soon after the Nepal-India treaty on railway service was finalized, the Nepali government contracted out the management of the port for ten years to Himalayan Terminal (P) Ltd., a company 60% owned by Concor Ltd. (a state owned company of India) and 40% jointly by Nepal Transit and Warehousing Management Company Ltd. (a government owned company of Nepal) and Inter State Multi Modal Transport Company (P) Ltd. (a private sector undertaking of Nepal).

Chandra Kishore from Birganj

Embassy to Showcase Nepali Goods

Newly appointed Nepali ambassador to the USA, Kedar Bhakta Shrestha, has shown keen interest over enhancing the market for Nepali goods in the USA.

Speaking at a program organized by Garment Association of Nepal (GAN) he said he would lobby the concerned US authorities for exempting tariff and quota restrictions on Nepali readymade clothes that are exported there. He said that he is aware there has been no enough exercise so far to get that facility which the African and Caribbean countries are already enjoying.

Interesting it is that he has vowed to set up a showroom for Nepali readymade clothes, garments, tea and Pashmina products at the embassy premises.

He said he would also exercise into expanding the market there for Nepali goods including making arrangements to sell them through renowned retail chains like the WalMart.

Nepal Joins Medium HDI Club

According to Human Development Report 2004 (HDR-04) from United Nations Development Program (UNDP), Nepal has improved its Human Development Index (HDI) scoring 0.504 out of 1.000, thus earning somewhat prestigious label of “medium HDI country.”

With this, Nepal has moved three rungs up in the country ranking reaching 140th place from 143rd within one year. Norway has scored the best occupying the first place among the 177 countries surveyed. Sierra Leone is placed the 177th. Nepal’s northern neighbour China is placed 94th.

The last year’s HDR had reported Nepal to have scored 0.499.

ADB Board Visited Nepal

A delegation from the Board of Directors of the Asian Development Bank (ADB) visited Nepal during July 29 - August 2. This was the Board’s third visit to Nepal, the last being in February 1999.

The group visited three countries in South Asia – Bangladesh, Bhutan, and Nepal – to gain a better understanding of their needs and the development experience of ADB, according to Nepal Resident Mission of ADB in Nepal. The group met the Prime Minister, Cabinet members and senior government officials to discuss ADB operations. The group also discussed the impact of conflict on Nepal’s development.

The delegation held consultations with civil society, the private sector and other development partners to discuss issues relating ADB operations and visited the ADB-assisted Third Livestock Project in Pokhara and the Melamchi Water Supply Project in Melamchi Valley. It may be recalled that the Melamchi Project is recently bogged down in deep controversy relating to the activities of the contractor.

The delegation comprised Executive Directors Jusuf Anwar, Stephen Sedgwick, and Chaiyuth Sudthitanakorn and Alternate Executive Directors Shaolin Yang, Masaichiro Yamanishi, Akram Malik, and M. Saiful Islam.

The delegation arrived from Bangladesh and left for Bhutan on 2 August 2004.

Nepali Readymade Garment Sector Joins Istanabul Alliance

The quota on textiles and apparel products based on the WTO Agreement on Textiles and Clothing is going to be fully phased out by January 1, 2005. This has raised serious concern among many countries around the world, including the major importer countries like the USA, over the ramifications that will follow. Garment Association of Nepal (GAN) is serious on the matter as its little market that has sustained because of the existence of quotas, will be gobbled up by other countries. The removal of quota allocation will force especially the under-developed countries like Nepal to face a fierce competition with countries like China and India.

GAN has joined hands with the textile and clothing associations from around the world to urge WTO to extend the deadline for the final implementation of the planned phase-out of quotas. Istanbul Coalition, which includes 47 nations from five continents have submitted a request for extending the implementation of the phase-out of quota system to December 31, 2007.

The fear is rife that in no time China will monopolize the US market in this sector. This country already has a very big share on exports of textiles and clothing to the US which as of March had reached to 64% of the total from 9% in 2001. India would benefit similarly. The under-developed countries will be hard hit, with their large population that is living from this sector. Nepal alone is likely to lose about 50,000 jobs and investments worth about Rs. 6 billion.

The Global Alliance for Fair Textile Trade (GAFTT) has supported the government of Mauritius which has petitioned the WTO to hold special meeting to discuss the aftermath many countries will have to face as a result of the removal of the quotas on export of textiles and clothing. GAFTT members have pledged to urge their governments to express support for the Mauritius call. GAN has been lobbying the Nepali government to do the same.

FCAN Calls off Strike

Federation of Contractors Association of Nepal  (FCAN) was on a strike against what they claim as the government defaulting on paying them their dues against the work completed on government projects. Recently, a delegation of the FCAN led by its president, Sukunta Lal Hirachan, met PM Deuba to put to him their complaint. In response, the prime minister has vowed to disburse the amount liable to them as soon as possible and following this positive development FCAN has called off the strike.

The contractors say some of the projects, which they are still to get paid for, were completed ten years ago. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Nepal Chamber of Commerce (NCC) had come to their help by urging the government to pay the dues without delay.

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