Nepal-B'desh talks on Mongla port on track

Himalayan News Service

KATHMANDU: Nepal and Bangladesh have finalised the draft agreement on Operation Modalities for the Carriage of Transit Cargo.

Theough, the two South Asian countries have signed a transit agreement more than three decades ago, after ratification by both the governments, Nepal’’s transit trade will get a boost as Nepal can use Bangladesh’’s second seaport, Mongla, for its foreign trade.

The land-locked Nepal has been using the Kolkata port in the Indian state of West Bengal. “The talks regarding port was quite positive,” said Surya Prasad Silwal, joint secretary at the Ministry of Commerce and Supplies (MoCS).

Though the transit agreement was signed between Dhaka and Kathmandu back in 1976, there had been no progress on its implementation because of a number of reasons.

When former Indian Prime Minister I K Gujral visited Nepal in 1997, he agreed to provide the transit facility to Nepal to access the Mongla port.

“Nepal has agreed on the final transport modality whose final procedure will be completed in the next meeting in Kathmandu,” Silwal said adding that transport modality is different in process, procedure and documentation process for Nepali vehicle used during export.

Nepal-Bangladesh secretarial meeting was held on July 15 in Dhaka.

The two-way trade between Nepal and Bangladesh is not that big with Nepal importing goods worth $8.0 million against export of goods worth $70 million. Since the financial benefit out of the proposed transit deal is yet to be seen, Nepali exporters might find it an alternative to the current export route.

However, without access through India, the prospect of increased exports of Bangladeshi goods to Nepal does not appear that bright because of the higher cost of freight, according to the Bangladeshi officials.

There should not be any reservation against such connectivity, they said.