In line with its traders’ response, Nepal is mulling to utilize the Vizag port as a transit for its imports from the third-world countries.

In this regard, the Ministry of Commerce (MoC) has recently held discussions with Nepal Transit and Warehousing Co Ltd., the organization dealing as a customs agent for government cargoes.

For Nepali traders, the trade via Vizag is more predictable than that of the Kolkata Port owing to its riverine infrastructure that doesn’t allow any further expansion. Its capabilities have also been limited to just handle feeder vessels.

Inefficiency and limited capabilities of the Kolkata Port such as costs and infrastructure limitations are resulting in high detention and demurrage charges for Nepali traders while shipping liners due to delays in clearing containers on the port.

“Lack of transparency and involvement of middlemen in different layers result in high cost of trade from Kolkata, hence Nepali industries importing raw materials through Kolkata port are less competitive,” say the MoC officials.

Owing to these challenges, MoC Nepal feels Vizag port could be an advantage because of its transparent services, cost and time saving features and effective handling of shipping liners and mother vessels thus reducing the ocean freight costs.

Clearing the traders ‘confusion and doubts over usage of Vizag port, the Nepal Intermodal Transport Development Board informed, “Traders will not have to face hassles and incur unforeseen costs of trade and there will be predictability in delivery of cargo if they utilize Vizag port.”

“Traders should take up the next best option to minimize the time and cost of the country’s foreign trade, which will ultimately help tame inflation because inflation in import-based economies like Nepal is driven to a large extent by the supply side hassles,” say the government officials.

Chemical fertilizers, IT-related and aircraft equipment, arms and ammunition and machinery are some of the key imports now the government is keen on importing through Vizag port.

The post Nepal Keen on Using Vizag Port for Cargo Import appeared first on Nepali Sansar.

Nepal is keen on leveraging the potential of the Indian port city, Vishakhapatnam, thereby boosting its trade ties with India.

This was evident in ‘Nepal-India Trade Transit and connectivity: Issues and Facilities’, a workshop jointly organised by the Nepali Embassy in New Delhi and India’s Institute for Defense Studies and Analysis (IDSA), in Vishakhapatnam, on Tuesday.

The workshop focused on trade, transit and connectivity between India and Nepal.

In his inaugural address at the event, Deep Kumar Upadhyaya, Nepali Ambassador to India expressed Nepali traders’ willingness to leverage the potential of highly-advanced port facilities in Vishakhapatnam, for their transit operations.

He added that India, besides being the biggest trade partner of Nepal, is also a major transit country for Nepal’s trade with other countries.

Speaking on the occasion, M T Krishna Babu, Chairman of Visakhapatnam Port, requested the Government of Nepal to set up a Consulate office in Vishakhapatnam.

“Though geographically Kolkata/Haldia may be nearer to Nepal, Vizag may work out cheaper considering other factors and advantages here,” said Krishna Babu, while noting that Nepal’s trade from Vishakhapatnam is still at a nascent stage.

Container terminal in Vishakhapatnam port would benefit Indo-Nepal trade, he noted.

The post Nepal Eyes Vizag for Transit Operations appeared first on Nepali Sansar.