Himalayan News Service

Kathmandu, May 24:

Experts and businessmen have underlined the need to have a transit service agreement with China in order to develop Nepal as a transit point for Sino-Indian trade. They also suggested that Nepal could be one of the best transit points to link the world’s two largest and fastest growing economies. However, they emphasised the need for comprehensive homework and preparations before entering into a tripartite agreement to open the transit facility. Nepal Chamber of Commerce and Society of Economic Journalists of Nepal (SEJON) today jointly organised an interaction on ‘Nepal as a transit point for China and India’. Presenting a working paper, NCC president Rajesh Kaji Shrestha pointed out the need of transit service agreement with China to realise Nepal’s potential of serving as a transit point. He said Tatopani and Birgunj customs points would be two linking points for China and India at present. “Necessary infrastructure like road, airports, terminals and dry ports should be constructed, since they are basic facilities to become a transit point. We should also look into developing air transit points,” said Shrestha.

Once the volume of trade and transportation movement increases, Nepal should also consider opening new routes. “Kimathanka and Rasuwagadhi points are most probable transit points, where construction of necessary infrastructure should be started,” he said. Purushottam Ojha, acting secretary at the ministry of labour and transport management said that Nepal will have multifaceted benefits, if the transit point concept is properly developed. “There is a high-level political commitment for developing Nepal as a transit point for India and China, even King Gyanendra mentioned it following his return from Afro-Asian and Boao Conference last month,” he said. Ojha also pointed out the need to address several issues regarding customs, simplification of documentation, legal implication as well as physical infrastructure before entering into a transit hub. “Developing a transit transport network is crucial to boost trade and other activities,” he said.

“Although Nepal is a landlocked country, geographically she holds strategic significance for India and China. The transit point potentials should be explored cautiously keeping this fact in mind,” said Dr Rajeshwar Acharya, former ambassador of Nepal to China. “A proactive planning is must to reap optimum benefits by providing transit facility. Our planning and policies need to be harmonised accordingly with the ongoing regional developments,” Dr Acharya said. “Nepal should look beyond Tibet and India, once transit point comes into operation. Since Tibet is not so big a province and politically sensitive, Nepal should try to expand its trade link to Central Asian countries and the Mainland China,” he said. Dr Mohan Man Sainju, vice-chairman of Poverty Alleviation Fund, said that the transit point facility should be used not only for trade expansion but also for technology transfer and investment. Bijaya Ghimire, president of SEJON and Neelkantha Chaulagain, vice-president of Nepal Trans Himalayan Trade Association also stressed the need of visionary plans to exploit potentials of transit facility.