Nepal turns to multimodal transport

In consideration to the need of adopting modern transport technology for the expeditious end-to-end movement of cargo, His Majesty's Government of Nepal (HMG/Nepal) launched a project called Nepal Multimodal Transit and Trade Facilitation Project (NMTTFP) in the beginning of 1998. The Project envisages construction of three Inland Clearance Depots (ICD) or Dry Port at Biratnagar, Bhairahwa and Birgunj. The total cost of the Project is estimated US $ 28.5 million, which is being financed by the International Development Agency IDA credit US $ 23.5 million, and HMG/Nepal US$ 5 million.

With the beginning of worldwide use of containers in the mid-1970s, the need for containerizing Nepal's exports and imports was felt. Although a number of casual studies referred to the benefits of containerized transportation, it was the Regional Project of UNDP/UNCTAD/ESCAP on Least Developed Landlocked Countries Programme with its field office in Kathmandu from 1979 to 1984 which came up with the idea for introducing containers in Nepal. This was followed by a preliminary study by a short-term consultant from ESCAP in March 1980. Thereafter, a detailed feasibility study was carried out with the funding from the World Bank by the Canadian Pacific Consulting Services in 1985-86. But it was not until June 1995 when the meter gauge rail line between Muzaffarpur and Raxaul was converted to a broad gauge that the Project started to receive positive response from the concerned agencies to come to its present implementation phase.

The main objective of the Project is to reduce the transport and transit costs associated with third country imports and exports transiting through India. This will ultimately bring down the internal price of imported goods as well as increase export competitiveness in the international market. The Project also aims at rationalizing trade and transit procedures for making them more efficient and better organized for multimodal transport.

The construction of the ICD at Sirsiya, Birgunj, which is the largest of all the three, is to cost about US $ 18 million. It is going to be connected with the broad gauge rail line at Raxaul, India. The works for the rail line extension from Raxaul to the ICD has also begun with the assistance of the Government of India. The Birgunj ICD is expected to come to operation by the end of 2000.

The development of the other two ICDs at Biratnagar with a cost of US $ 2 million and at Bhairahwa with a cost of US $ 1.9 million has been recently completed. Moreover, the Project provides for the acquisition of four reach stackers to handle containers at the ICDs. Competent private operators are to be selected through competitive bidding to manage the ICDs as Terminal Operators or Terminal Management Companies.

In order to provide institutional support to the Project, NMTTFP was established by the Ministry of Industry, Commerce and Supplies (MoICS) to act as a Project Implementation Unit (PIU) for the overall control and supervision of the Project. In addition, an autonomous body called Nepal Intermodal Transport Development Board (NITB) has been established to own the ICDs on behalf of HMG/Nepal, and negotiate and enforce the terms and conditions of the lease agreements with the private terminal operators.

An important institution called National Trade and Transport Facilitation Committee (NTTFC) has also been created to sustain and institutionalize the trade and transport facilitation activities in Nepal. The NTTFC is headed by the MoICS secratary, and represented by private and public sectors. It is designed as a national focal point to initiate facilitation measures in trade and transport. It works as an inter-institutional forum to promote facilitation, study international trade and transport regulations including conventions, prepare recommendations, and create transparency on major trade and transport issues. Indeed its activities are guided by four objectives relating to facilitation, regulatory, development policy and training.

Technical assistance for the Project is provided by United Nations Conference on Trade and Development (UNCTAD) aimed at improving the trade and transport sectors of Nepal, to improve Government finances and strengthen the economy through increased efficiency in the foreign trade environment. The Project consists of three components, transport and trade facilitation, extension of Automated System of Customs Data (ASYCUDA)-Phase II and installation of Advance Cargo Information System (ACIS).

The multimodal transport and trade facilitation activities are targeted at reforming and modernizing the transport and trade systems. This part is subdivided into four parts, simplification of procedures and documentation, strengthening of freight forwarding industry, drafting of new legislation and modernization of existing laws in trade and transport, and strengthening of insurance and banking policies and practices relating to trade and transport.

A number of workshops, seminars and interactions have been held to disseminate knowledge and information on the various aspects of multimodal transport, trade facilitation, freight forwarding and dry port/ICD operation. Professional associations relating to freight forwarding have been supported to elaborate terms and conditions including standard trading conditions. Preparations are underway to establish a permanent training centre TRAINMAR in Nepal.

The another component is ASYCUDA Phase II introduced for improving revenue control through installation of an electronic mechanism for the production of customs and trade statistics and reducing the administrative burden on the trading community to a minimum. It is a software programme of UNCTAD designed to reform and modernize customs operations. This system handles manifests, customs declaration, accounting and warehousing.

This has been in process of being implemented in more than 70 countries. This system aims at modernizing the customs procedures and management to give effect to the fast clearance of goods and also to improve the reliability and timely retrieval of trade data. It envisages computerized processing of a standard declaration form called 'Single Administrative Document' (SAD). After its implementation at the Tribhuvan International Airport (TIA) Customs with the assistance of the Asian Development Bank, it is to be extended under the Phase-II programme to the three ICDs and also the existing Customs terminal at Birgunj under the UNCTAD Project. From the current fiscal year starting on 16 July 2000, SAD has been officially introduced at all Customs with the operation of ASYCUDA at the TIA and Birgunj Customs. It is also being operated to effect soon at Biratnagar and Bhairahwa Customs.

The third part of the technical assistance is the ACIS, which is also a computer software system developed by UNCTAD. It is designed to track the rail and road movement of containerized cargo in the Calcutta-ICD corridors. It aims at installation of recording system at the both ends of cargo movement. This will help to programme timely movement of containerized cargo by taking corrective steps to avoid and minimize the detected delays and problems, and also to retrieve timely information to the freight forwarders, exporters, importers and transport providers.

The operation of dry ports supported by suitable transit procedures is estimated to provide Nepal with tremendous savings in transport cost by about 40 percent of the conventional cost of trading with foreign countries. As the Birgunj ICD establishes linkage with the Indian broad gauge rail system, it will also help to promote bilateral trade between Nepal and India. Nepalese exporters' capacity to compete in international trade will be enhanced that would have a long-term effects on Nepal's ability to expand and diversify her foreign trade.

Valvoline launched in Chitwan

BY A STAFF REPORTER

Kathmandu, Sept 3: Valvoline, producer of lubricant oils, in 1866 in the United States of America, was launched the other day in Narayanghat, Chitwan amidst a special function.

Used initially to grease the valves of steam engines (hence the term Valvoline), the brand became synonymous with the automobile industry with the advent of the motor vehicle. Valvoline's reputation in more than 140 countries transcends the lubricant range in encompassing an entire range of automotive after-market products and services.

These include automotive and industrial lubricants, greases brake oils, automotive chemicals and refrigerants, antifreeze, car care product and engine treatment, power performance products and range of appearance products. As per Alok D Sharman, Vice President (Sales) of Valvoline Cummins Ltd., Valvoline is divided into 5 world wide regions, and Nepal is part of Asia Pacific region.

Valvoline Cummins is bringing to Nepal market at Narayangarh, its excellent range of automotive and industrial products through the distributorship of Jay Buddha International Trading Concern (ITC), Bharatpur. As per Alok Sharman, lubricants for Cummins Off-highway engines are already being supplied through CDS&S dealer-Engineering Marketing Concern. Very soon all Valvoline products will be available throughout Nepal.

Meanwhile, RSS adds that Minister of State for Industry, Commerce and Supplies Narendra Bikram Nemwang says His Majesty's Government is determined to encourage the private sector to play even more significant role in open market economy.

Speaking at a programme marking the market expansion in Nepal of the internationally famous engine oil vavoline here, Minister of State Nemwang said promotion of industrial and commercial activities would also help increase employment opportunities in the country, thereby strengthening the national economy.

Calling upon the private entrepreneurs to focus their attention on the government policies, he said they should also provide standardised services through professional activities.

Chief of Jayabuddha Amrit Ghale presided over the function.

Other speakers also observed that use of standardised engine oil would prolong the life of vehicle engine.