Namaste and Good Afternoon

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1 Namaste and Good Afternoon

2 Country Paper Nepal UNESCAP Cooperation for Facilitation of International Railway Transport October 2014 Bangkok,Thailand

3 Old and abandoned Railway station in Nepal (80 yrs old)

4 Nepal at Glance Location : 26⁰ 22' North to 30 ⁰ 27' North and 80⁰ 4' East to 88⁰ 12' East Area : 147,181 Square Km. Capital City : Kathmandu Population : million* Population Growth Rate : 1.4%* Currency : Nepalese Rupee Some World Heritage Sites : Lumbini (Birth place of Buddha) Chitwan National Park, Sagarmatha National Park, Pashupatinath, Swayambhunath, Bauddhanath, Changu Narayan, Kathmandu Durbar Square, Bhaktapur Durbar Square and Patan Durbar Square * Based on Population Census Report 2011, Central Bureau of Statistics (CBS). Sources: Central Bureau of Statistics

5 Nepal Area: sq km Population: 28,809,526 5

6 Main Economic Indicators of the Country Nepal is a developing country with relatively small Economy in South Asia. The Economic Indicators: Nominal GDP at Producers' Price Total Consumption Gross Domestic Saving US$ 15,582 mil. US$ 14,028 mil. US$ 1,554 mil. Per Capita Income US$ 658. Population below the poverty line 23.8% people are in foreign employment as of millions Economic growth rate 3.6%

7 Some 800 thousand tourists visited Nepal in 2012and 2013 Country 2012/ /2014 India 20.6% 22.9 China 8.9 % 11.2 Sri Lanka 7.8 % 7.5 USA 6.8 % 7.4 UK 5.0 % 4.7 Other Countries 50.9% Land route used tourist 25%

8 Trade Balance 2012 Country Export Import Trade Balance Afghanistan Bangladesh Bhutan China P. R India Maldives Pakistan Sri Lanka Total

9 Possible Cross Border Rail Connectivity with India CHINA INDIA

10 Status of Cross Border Rail Transport Jayanagar Janakpur Bijalpura (53Km) Heavy flood at Bighi River in Mahottari washed away some parts of Railway Bridge over the river in 2001 disrupting the services in Janakpur Bijalpura sector, 24 Km. From that day onwards the railway is running on Janakpur Jayanagar sector of 29 km only. This link is now under upgrading and extension.

11 Status of Cross Border Rail Transport There are 6 possible points of cross border connectivity with India MOU has been signed between India and Nepal to develop cross border rail connectivity with all facilities at 5 border points. Under 1 st phase construction has already been started at 2 points viz. Biratnagar and Jaynagar. At other 3 locations work will start under 2 nd phase. All connectivities will be in Broad Gauge, the same Gauge as adopted in India.

12 Trade and Transport Development for the border Crossings The distance from Kolkata to Birgunj is 704 km and between Haldia and Birgunj, 832km. The train path is controlled by Indian Railways and the container haulage operation is handled by Concor India. Paths are given to the freight trains, but there is no predetermined schedule of service and is restricted by Indian scheduled services. Journey time on the railway is about four days on average (the range of transit days from ship to Birgunj ICD varies from 2 to 16 days.)

13 Trade and Transport Development for the border Crossings After clearing customs at Birgunj, the Full Container Load (FCL) containers may depart directly to their destination. The Less than Container Load (LCL) containers are de stuffed at or generally near Birgunj ICD/Dry Port. Indian Railways is required by agreement to unload the containers on the rake in 8 to 12 hours and this is achieved using modern reach stackers (there are no rail mounted gantry cranes)

14 Links between border towns of India and Nepal have already been started to construct at five locations by the grant of Government of India. These are as: Phase I (Under Construction) Jogbani (India) Biratnagar (Nepal) Kms Jaynagar (India) Bardibas (Nepal) Kms Phase II Planned routes and railway lines under construction (cross border rail) New Jalpaiguri (India) Kakrabitta (Nepal) Kms Nautanwa (India) Bhairahawa (Nepal) Kms Nepalganj Road (India) Nepalganj (Nepal) Kms

15 Planned routes and railway lines under construction A Feasibility study was conducted in 2009 to develop rail networks to be part of TAR in the country for: Mechi Mahakali (945 Km) Pokhara Kathmandu (187 Km) Connection between proposed Mechi Mahakali & Kathmandu Pokhara Railway lines. (72 Km)via Tamsaria Anbu khaireni link. Feasibility study of 75 kms of Metro Rail In Kathmandu Valley is completed & the DPR of the same is about to start.

16 Planned routes and railway lines under construction Mechi Mahakali(East West) /TAR Electrified Railway (Top Prority) S.N 1 Name of Link Bardibas Simara Birgunj Approx Length (Km) Present status of the Link DPR (excluding EIA) Completed construction of track bed and cross drainage works started 2 Simara Tamsaria 127 DPR (excluding EIA) Completed 3 Tamsaria Butwal Lumbini DPR (excluding EIA) Completed 4 Buwal Kohalpur 215 RFP under evaluation 5 6 Kohalpur Gaddachouki Kakadbhitta Bardibas 189 RFP in process 254

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18 Volume and type of Cargo Handled

19 Container Cargo handled at Birgunj ICD Year Nos. of trains handled Imports (TEUs) Exports (TEUs) Remarks Weighted average of traffic increment is around 9% Utilization of train capacity in terms of conainer slots filled in rail flats has varied from 74% at the begining in to 100% in

20 Break Bulk/Bulk traffic Export Import Volumes at Birgunj ICD Year Nos. of trains Imports Weight(MT) Nos. of trains Exports Weight(MT) Weighted average traffic increment is around 20% Iron & steel cargo Bulk Bagging Cargo Break Bulk

21 Trade and Transport Development for the border Crossings Half the third country imports transit in containers by rail from Kolkata to Birgunj. The high value goods imports in containers, it covers around 50% and the remaining 50% of third county goods travel to Nepal by road in containers or as break bulk. The total containerised tonnage arriving by rail is about 190,000 tonnes (a quarter of the total tonnage arriving at Birgunj of 750,000 and arriving in the form of 20,000 TEU per annum). Approximately 5% of third county containers arriving by rail at Raxaul originate from Chittagong.

22 Legal Basis for International Railway Transport Intergovernmental Agreement on the Trans Asian Railway Network. SAARC Regional Agreement on Raisslways.(finalized) SAFTA,BIMSTEC INDO NEPAL TRADE RELATED AGREEMENTS: Treaty of Transit Treaty of Trade Rail Services Agreement

23 Current measures for facilitation of International Railway Transport Building of ICPs (phase wise) at identified border crossing points and providing all the facilities at the same point. Also planned to connect the already built ICDs with rail link and ICPs with all facilities. Provide such facilities at other border crossings points to be built in future. Participation in international facilitation conventions and apply new technology (EDI, National Single Window) and uniform standards. Coordination meeting at different levels (IGC,IGSC) Meetings of Inter State Custom Authorities.

24 Current Border Crossing Arrangements and Procedures Domestic Rules Governing Trade Export Import Control Act 1958 Export Import Control regulation 1974 Gazette Notifications of October Customs Act 2006 and Regulations Private Firm Registration Act, Company Act, Plant Protection Act, Food Act, Animal Health and Livestock Services Act Standard Measurement and Weight Act, 1969

25 Current Border Crossing Arrangements and Procedures Domestic Rules Governing Trade Quarantine Act and Regulations. Narcotics Drug Control Act, Patent, Design and Trademark Act, Consumer Protection Act, 1998 and Regulations Industrial Enterprises Act, Foreign Investment and Technology Transfer Act, Trade Policy, Industrial Policy, Nepal Trade Integration Strategy, Various Acts and Legislations governing services like education, health, accounting, tourism and professional services.

26 Current Border Crossing Arrangements and Procedures International Rules Unilateral preferences available under GSP and zero tariff Preferences by the developing and developed countries. Bilateral arrangement. Nepal India Trade secretary level mechanism(igc) and Joint secretary level mechanism(igsc) Treaties: Trade treaty, Transit Treaty, Control of unauthorised Trade and Rail Service Agreement. Regional trade agreements of SAFTA and BIMSTEC FTA. WTO rules and obligations.

27 Trans Asian Railways `

28 TAR Contd. Radhikapur (India, Nepal) Birol Dinazpur Bangaladesh Parbatipur Singabad (India, Nepal) Rohanpur Ishurdi Abdulpur Tongi Shahbazpur Kulaura Mohishasan (India) Darsana Dhaka Akhaura TAR-1 Gede (India) Chittagong Dohazari Ramu Gundum Myanmar

29 Facilities at the Borders At the border there are two distinct border facilities, these being 27 traditional border post located on the historic crossing points between India and Nepal, and five Inland Clearance Depots (ICDs) at: Birgunj (rail only facility, India); Biratnagar (road, India); Bhairahawa (road, India); Kakadbhitta (road, India); and Tatopani (road, China). Feasibility study has been done for the construction of dry port in Sharlahi, Rajbiraj, Gaur and Maheshpur Customs. Integrated check post construction in Birantagar, Birgunj, Nepalgunj and Bhairawa customs under process.

30 ICD at Birgunj

31 ICD at Bhairahawa

32 Major Challenges in cross border and transit transport by rail Establishing an efficient, integrated and harmonized transit transport system in south Asia Designation of fixed transit transport routes and provision of necessary facilities Harmonization of rules, regulations and procedures for goods and vehicles, including customs procedure. Simplifying and harmonizing transport, trade and customs regulations and requirements for the purpose of facilitation of goods in transit Provision of multimodal transport facility Linking ICDs with railway line Enhance and strengthening quarantine mechanism for its recognition Harmonization of railway gauges in neighboring countries. Seamless movement of people and cargo across the border.

33 Effective risk management system Effective dispute settlement system Special provisions for the transportation of timesensitive goods such as drugs and perishable goods. Investment in infrastructure hardware as well as software Quality of roads and railways. Major Challenges

34 Key Areas for cooperation for efficient border & transit railway Operations Expansion of Regional Connectivity. Establishment of new link connecting China and India via Rasuwagadhi in Nepal. Technology support from the countries with huge railway network. Availability of fund for the development of railway network including TAR.

35 Suggestions on further initiatives/measures and expected role of UNESCAP in supporting these measures Training with field observation trips for knowledge and technology transfer. Encouraging member states for the construction of missing links. Identification of new possible border crossing points with rail links and related studies. Platform for discussions and development of TAR in the region.

36 Conclusiion /Way Forward Nepal specially the southern part is very good potential for railway development Although Nepal had about 100 km of operational rail length some 85 yrs ago it could neither be preserved nor be upgraded. The capital city of Kathmandu has reached a stage where some sort of railway service is essential. The East West railway 945 km in length also a part of TAR should be developed fast. Also thereis a possibility of linking China And India by rail via Bhairahawa Rasuwagadhi link.

37 Conclusion /Way Forward Considering the huge size of investment need and the cutting edge technology that has been developed across the globe Nepal s initiations to develop railway network needs support from neighboring countries as well as development partners.

38 Thank You