Kathmandu, February 24:

Freight forwarders and exporters have expressed concern over the delay in renewing the transit treaty between Nepal and India. It has created confusion in the context of future plans, they observed.

The three month-long extension of the transit treaty ends on April 6, 2006. The fear factor while exporting and sending goods to their final destinations is troubling us, said exporters and freight forwarders associated with Nepal Freight Forwarders Association (NEFFA), while speaking at a programme held by it today.

Namgyal Lama, president of NEFFA, while speaking at the function particularly focused on facilitation of export through shipping agents and freight forwarders. Lama, pointing to shipping liners and other vessel operators, asked for their suggestions to stop pilferage in railway containers, shipments and delay in exporting through ICD while sending and receiving goods to and from their final destinations.

For expediting export related business, a code of conduct is crucial for its sustenance, said Lama. He also informed that the multi-modal transport act is also coming soon which will, to a greater extend, bring all trading activities under certain rules and regulations ensuring that no one is hurt.

Immediate past-president of NEFFA, R M Singh said that freight forwarders are getting scared due to the delay in the transit treaty renewal. He demanded for immediate renewal of the transit treaty. Following the hike in petroleum product prices, export is also getting costly and facing a downward trend, Singh said. Singh expressed the views that if we could integrate shipments being done through road transportation, it would be easier for ICD.

Surya Bahadur Manandhar, executive director of Nepal Inter-multimodal transport Development Board (NITDB), a government-owned entity, showed concerns that not even a single shipment of garment, carpet and handicrafts from ICD Birgunj have gone through so far. He was surprised not to see ‘freight forwarders’ using the ICD despite it being in operation. On the other hand, import through ICD is increasing day by day, he added.

On an average, while about 800 containers come through the ICD as imports, only about 10 go out carrying exportable items.

Rajan Sharma, general secretary of NEFFA, also expressed serious doubts over the issue of ‘liability’. Even if one shipment is lost on the way to its final destination, whose responsibility is it, he questioned. He accused some agents of crossing territory and not working within one system.

B Mohan, chief executive officer of Himalayan Terminals Pvt Ltd (a joint venture of CONCOR, ministry of India railways, India) expressed wonder for failing to use the ICD based in Birgunj, Nepal which has world class facilities, better than the Mumbai dry-port. Twelve Indian trains offload shipments to ICD Birgunj every month which means 800 containers a month, said Mohan.

The issues such as insuring shipments, bringing all agents under one roof to resolve problems facing the sector, formulating a code of conduct and multimodal act, and ways to boost export were discussed.

The programme was attended by over 35 Nepali and Indian cargo related businesspersons and experts.