Dr. Nishchal N. PandeyDirector,

Centre for South Asian StudiesKathmandu, NEPAL

www.csas.org.np

Historical SignificanceNepal has historically been used for

trading between India and ChinaDependence on the Kolkata port has

hindered smooth supply of import & export, transit cost has affected export competitiveness

Kodari highway built in the 60s is the only paved road link with TAR

15 entry points with India

Kodari HighwayEasiest Connection between

North India and TAR

Constructed in 1962Functional 12 months a

year, black-topped- links Khasa (Zhangmu) town of TAR with Kathmandu

Now connected with Dhulikhel-Sindhilu road constructed by Japanese assistance linking the terai region

Future Road Projects with TAR-ChinaCompletion of

Syafrubesi-Rasuagadhi road (18 km)

Construction of Trishuli-Galchi with 3 bridges (17 km)

Construction of Beni-Jomsom road (72 km)

Construction of ICD at Kodari for transit facilitation

Developing Nepal as a Transit StateAfter Golmud-Lhasa-Shigatse

railway is extended to Nepal border, a new vista of opportunity opens for 3 countries.

GoI is also constructing railway and better roads in the Indo-Nepal border

Goods from North India can reach Khasa within 24 hrs. and vice versa.

Optical fibre is already laid from TAR to Dhulikhel

Problems at Tatopani Border Point

Rs. 1.45 bln. Collected during 4 months of the current fiscal yearDelays, red-tapism, landslide, stronger Yuan contributes to a drop of revenue

• Transporters charge Rs. 95,000 (Tatopani-Ktm) but only 25,000 for (Birgunj-Ktm.)

Possible Routes of Additional North-South RoadsMohana-Dhangadi-Atari-Darchula-Tinker

(415 km)Nepalgunj-Surkhet-Jumla-Hilsa-Yari-Purang

(581 km)Bhairahawa-Pokhara-Jomsom-Lizhi (467 km)Birgunj-Galchi-Rasua-Syafrubesi (340 km)Janakpur-Dolakha-Lamabagar-TAR (295 km)Rani-Itahari-Hile-Kimathanka-TAR (419 km)Kechana-Taplejung-Olangchungola (460 km)

Border Trade with IndiaOpen border, Nepal’s

largest trading partnerICD Birgunj has been

functional and freight is coming straight from Kolkata to Birgunj

Oil and gas still major issues as supply is not regular

Chinese goods found in U.P & Bihar are mostly through Nepal

Recommendations Lhasa-Golmud railway touching Nepal could

help North India and even BangladeshInfrastructure development in Indo-Nepal

and Nepal-China borders given priority by Nepal govt.

Bangladesh PM has assured Nepal & Bhutan to use the Mongla port

India and China both need to cooperate within Nepal rather than compete with one another.

Sub-regional Connectivity means to enhance intra-regional trade and to achieve comprehensive growth as integrated transport and communication systems

It improves access to sub-regional markets through diversifying the basket of goods available for export, attracting more foreign direct investment, and integrating production networks

It is essential for economic development, closing development gaps, ensuring economic and social integration and strengthening the countries’ competitiveness

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Sub-regional Connectivity in South Asia for Trade

Routes Connecting Bangladesh, Nepal and Bhutan

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Roads in the TeraiIndo-Nepal Border

Borders need to be re-designed as Bazaars not as Barriers!!!