KATHMANDU: Following the recent visit by Nepalese prime minister KP Shamra Oli’s visit to India, the Visakhapatnam Port Trust (VPT) is now set to perform as an alternative port to the Kolkata Port Trust (KPT) in providing transit facilities for Nepal-bound cargo.
The agreements signed by the governments of India and Nepal include the exchange of letters providing for transit facilities for Nepal through VPT and also allow for rail transport to and from Visakhapatnam to Nepal.
“Though the distance between Vizag and Birgunj (a border town in Nepal) is long in comparison to Kolkata the trade needs to be made aware of other factors which will increase the transparency and traceability due to short ocean route, cheap ocean freight cost ,better facilities, better procedure and transparent and reasonable cost with better free time and indifferent demurrage charges in comparison to Indian cargo,” said president of Nepal Freight Forwarders Association, Rajan Sharma, in an exclusive emailed response to TOI. Sharma also said, “Electronic data exchange (EDI) is necessary especially for working with copy documents and automation of documents is very important.”
He said that there is a need to push Indian commerce department for an early start and set the procedure fast by incorporating VPT in the transit and rail service agreements. “The Nepal government should establish a liaison office to facilitate trade at Visakhapatnam as Kolkata consulate general’s office is too far for the port. It is necessary that the VPT and the stake holders, both government and private, visit Kathmandu and conduct a event to educate on the facilities, equipment, technology and procedures with approximate cost factors to the trade.”
Speaking about the facilities required for the Nepalese traders, he said, “We just want timely information on vessel arrivals, the procedure, time and cost must be appropriate. The liners must coordinate well with port and CFS operators and the train service providers like CONCOR. Due to better culture of the South people we are hopeful that we will get better service. The VPT must have a good understanding with shipping liver for free time to avoid detention and demurrage charges and deposit of containers to CONCOR at Nepalese ICD would further enhance the service and increase the volume.”
The cargo to Nepal through India’s ports include imports of clothes, electronic shipments for household use, machineries, vehicles and industrial raw materials. Also, cargo such as bulk and break bulk cargo, fertilisers and rice imports are also routed to Nepal through the Kolkata Port until now. Currently, around 700 containers make their way to Nepal from the Kolkata Port every week.
He said that Nepal was provided only one port of Kolkata/ Haldia for Nepal cargo and it was felt that having an additional port would provide “the feel good factor” for Nepalese in case any disruption in Kolkata port like the natural calamities related to sea happens, strike or port fails to operate.
Referring to issues that need to be resolved, he said, “The cost of doing business like the CFS charges, clearing agents fees and detention charges of liners for Nepalese cargo is too high. The procedure is also lengthy and takes four to five days to clear cargo after vessel arrives. Due to bad coordination between port, CONCOR and the railways the turnaround time from the shipment arrival date to deposits of empty to shipping line yard is even today taking 32 to 35 days.”
VPT chairman MT Krishna Babu said, “We are now inviting a trade delegation of about 20-25 people to visit Vizag and see the facilities available here. We have higher draft and the deputy chairman of VPT is coordinating with railways for easy connectivity. Once they let us know of any further requirements, we will extend the required cooperation for cargo movement through VPT.”
