Few years back, there was a banner news in almost all news media that China has opened its first combined transport service (rail and road) to Kathmandu. In real sense, the news worked like a surprise gift, everyone felt like on heaven. It was the moment of zeal-joy for Nepalese business community as well. Though, there were some question marks, expectations and doubts revolving within mind of business community. Those people who used to proclaim the possibilities of International trade through Rasuwagadhi route as the day time dreaming. Now, they too are declaring their notion that day time dreaming also works.
According to news, the first journey of international freight train had started from Lanzhou to Shigatse (Xigaze). Then entire cargo would be shifted on truck for road journey, which would arrive Kathmandu through Kyirong/Goolong Port. Further journey from Rasuwagadhi to Kathmandu would take place via Syaphrubesi- Trisuli- Galchi. The estimated time of complete transportation is 35 days. It sounds nice. Hope, this route would be viable to transport all types of cargoes from China to Nepal. Hope, this route would be most economic in terms of time and cost.
The enthusiastic comments of some experts got a hype that from now on the monopoly of India for transit route is over. News media are blowing trumpet, as if it’s the great victory against domination of India. Isn’t it extremely early to deliver such kind of comments or perception? Wouldn’t it be better to focus ourselves analyzing it’s strengths as well as weaknesses? We at least should check it’s transit cost, real travelling time, availability of throughout the year service and safety measures of cargo and the people etc. Rather than blowing trumpet only, It would be our wise move, if we would be able to advocate concerned authorities to take some initiative steps in reduction of it’s weaknesses.
Let’s go through some comparison between traditional sea/rail/road route and recently launched rail/road route from China to Nepal. It’s commonly known that mostly business clusters as well as sea ports in China are situated at its southern /eastern part. Both are well harmonious and interlinked with each other. As the result, procedure of domestic transportation to hand over the Cargo at desired sea ports are very comfortable and least expensive. On the contrary, for newly introduced rail/road cargo, the loading port- Lanzhou is situated at Northwestern part of China, far away from existing trading areas. Wouldn’t it be reasonable to be conscious in this point and do some healthy exercises? Additionally, we yet have to check the domestic freight cost (from trading region to Lanzhou) and the service availability of Logistic Companies/ Freight Forwards. It seems proper time to facilitate some joint meetings and B2B talks between concerned logistic companies and stakeholders at local. Furthermore, logistic companies should be invited to bring their official set up in Kathmandu as well.
Nepalese cargo generally gets shipped from China on mother vessels (giant size) for Singapore port and gets unloaded there. Having collection of containers in adequate quantity, it gets reloaded onto next feeder vessels (small size) for Calcutta port. The entire sea journey from China to Calcutta generally takes approx 4650 Nautical miles (8611.8 Kilometers). Other side, rail journey from Lanzhou to Shigatse would take only 2,431 kilometers. A part from these two transit points, further distance from Shigatse to Kyirong/ Rasuwagadhi and from Rasuwagadhi to Kathmandu are around 564 km and 160 km respectively. In this way, the total distance from Shigatse to Kathmandu or Calcutta to Nepalese Boarder is nearly similar.
Recently, The Trade Post (published by The World Bank) has published a analytical report that the basic causes behind dearness in landlocked countries are higher transit cost and poor logistic service. It means transit cost matters the most. At a glance, Lanzhou to Shigatse route seems extremely shorter. However, it’s yet to audit it’s transit cost. It has been seen that 80% of total int’l transportation is dependent on sea route. Since, transportation by ship has been proved as the most cost effective mean in comparison of other kind of means. Let’s hope that the transit cost of new route would be economic than existing sea route.
The trading route of Tatopani- Khasa and Rasuwagadhi- Kyirong aren’t recently discovered routes at all. These routes have been used for centuries. The fort at Rasuwagadhi recalls the memory of war between Nepal and Tibet. During regime of King Mahendra, these two routes had got special consideration for Sino-Nepal trade. Till last year’s earthquake in Nepal, the trade through these routes was occupying around 10% of total import from China and 50% of total export to China. Due to massive damages in these two routes, the trade had come to the halt. Rasuwagadhi- Kyirong route was restarted after 6 months. However, Tatopani- Khasa route is in uncertain status till now. Observing earlier records, experts say, “Rasuwagadhi- Kyirong route definitely would get trading movements, but with very thin density in comparison of total Sino Nepal trade.”
Previously, only road transportation was possible in Khasa-Tatopani and the Rasuwagadhi- Kyirong routes. Those days it was obligatory to load/unload and transship the cargo at some transit points. Additionally, heavy weight and extra length trucks weren’t entitled to move on such treacherous road. As the result, mostly heavy/bulky cargoes were compelled to be transported through sea/rail/road route. Now, 75 % journey of Rasuwagadhi- Kyirong route would be completed on rail. As China Government has assured, rest 25% journey too would be equipped with rail track very soon.
Beside these potentialities, China Government has agreed to construct inland container depot (ICD) at Larcha of Sindhupalchowk and Timure of Rasuwa within due time frame. It means the hassles of loading/unloading and transshipment in some transit point would be eliminated. The cargo, which would start from Lanzhou, would directly arrive at ICD, Timure, Nepal. As the result, the cost of transportation would be slashed down. Additionally, bulky/weight/lengthy cargo too would be transported in this route. However, these potentialities still are on paper only and rely upon the whole hearted execution from both countries.
The ground reality says, “Transportation on this mountainous route, which lies above the altitude of 8856 ft above sea level, would be the most costly and crucial task.” According to Himalaya (the Journal of the Association for Nepal and Himalayan Studies), the route of Rasuwagadhi to KTM is one of the most landslide-prone areas in Nepal. During each monsoon season, it’s very common to experience of the cutting off of the existing road for days and sometimes weeks. Crossing the area at any time is slow and tortuous. Numerous geological reports say, “The area is very close to the Main Central Thrust [MCT] of the Himalaya. This is the weak junction where the Indian plate slid under the Asian plate causing the Indian plate to shatter and crush.
Considering geographical proximity of this route, the movement of cargo in this route throughout the year seems a great challenging task. However, the Ministry of Physical Infrastructure and Transportation, the Nepal Army and Department or Roads have been assigned to widen the Galchi-Trisuli- Mailung-Rasuwagadhi Road to two lanes and black top it within earliest period. Though, it reflects silver line amid black clouds. We shouldn’t ignore presence of black clouds there; otherwise, the country may have to face another disaster in this route. Let’s be technically equipped for this route.
A part from these potentialities as well as geographical proximity in rail/road route, we still have to face further more hassles—red tape and other legal procedures at China – Nepal Boarder. Simplified customs control mechanisms, equipped with latest information & communication technology and client friendly procedures would be the basic condition for the success of this route. We yet have to see the initiation from Nepalese and Chinese Government for the upgradation of their Custom Check post and Immigration process at boarder.
Presently, we have total 15 transit route to access Calcutta seaport, among which Srisiya Dry Port is the busiest entry point. Here also, we have been experiencing extreme delay in unloading/ de stuffing, documents clearance, handing over of empty containers etc. As per existing trading norms in sea cargo, Nepalese Importers are entitled to return empty containers to shipping companies within given time frame. Otherwise, heavy penalty had been imposed. No doubt, these lacking have been burdening us extra transit cost. Despite these lacking, these routes have been serving us for round the year and much convenient for lengthy/ weighty cargo as well.
Previously Kyirong -Rasuwaghadi route was limited to light weight and loose cargo. Therefore, there was no such kind of obligation to return empty container. However, as soon as rail/road route come into full swing, containerized cargo with 40’ length and heavy/bulky commodities too would be unloaded at ICD of Timure, Nepal. And we will have to face extra cost and burden to return empty container within given time frame as it had been happening in Sea/ Rail/ Road route. It would be better to exercise for amicable solution in this regard as well.
Despite all proximity, we shouldn’t give up dreaming. After all, any success story begins with such dreaming only. Let’s grasp the dreaming as a portraying on a canvas. As we see, the half finished canvas always gives ugly appearance. A mature artist, therefore never gives up his portrayal until he/she fills the colours on canvas as he/she was dreaming for. At present, the Lanzhou-Shigatse- KTM route is like a half finished canvas. Presently, It at least would grasp the earlier business transactions of Tatopani- Khasa route. As soon as the Railway linkage between China and Nepal would come into execution, the canvas would be mostly completed. And, of course it would be most beautiful canvas. We would be able to enjoy the optional route for China Nepal trade in real sense.
- Written by Ganesh Prasad Lath
Half Finished Canvas- Kyirong / Rasuwa Route.
Few years back, there was a banner news in almost all news media that China has opened its first combined transport service (rail and road) to Kathmandu. In real sense, the news worked like a surprise gift, everyone felt like on heaven. It was the moment of zeal-joy for Nepalese business community as well. Though, there were some question marks, expectations and doubts revolving within mind of business community. Those people who used to proclaim the possibilities of International trade through Rasuwagadhi route as the day time dreaming. Now, they too are declaring their notion that day time dreaming also works.
According to news, the first journey of international freight train had started from Lanzhou to Shigatse (Xigaze). Then entire cargo would be shifted on truck for road journey, which would arrive Kathmandu through Kyirong/Goolong Port. Further journey from Rasuwagadhi to Kathmandu would take place via Syaphrubesi- Trisuli- Galchi. The estimated time of complete transportation is 35 days. It sounds nice. Hope, this route would be viable to transport all types of cargoes from China to Nepal. Hope, this route would be most economic in terms of time and cost.
The enthusiastic comments of some experts got a hype that from now on the monopoly of India for transit route is over. News media are blowing trumpet, as if it’s the great victory against domination of India. Isn’t it extremely early to deliver such kind of comments or perception? Wouldn’t it be better to focus ourselves analyzing it’s strengths as well as weaknesses? We at least should check it’s transit cost, real travelling time, availability of throughout the year service and safety measures of cargo and the people etc. Rather than blowing trumpet only, It would be our wise move, if we would be able to advocate concerned authorities to take some initiative steps in reduction of it’s weaknesses.
Let’s go through some comparison between traditional sea/rail/road route and recently launched rail/road route from China to Nepal. It’s commonly known that mostly business clusters as well as sea ports in China are situated at its southern /eastern part. Both are well harmonious and interlinked with each other. As the result, procedure of domestic transportation to hand over the Cargo at desired sea ports are very comfortable and least expensive. On the contrary, for newly introduced rail/road cargo, the loading port- Lanzhou is situated at Northwestern part of China, far away from existing trading areas. Wouldn’t it be reasonable to be conscious in this point and do some healthy exercises? Additionally, we yet have to check the domestic freight cost (from trading region to Lanzhou) and the service availability of Logistic Companies/ Freight Forwards. It seems proper time to facilitate some joint meetings and B2B talks between concerned logistic companies and stakeholders at local. Furthermore, logistic companies should be invited to bring their official set up in Kathmandu as well.
Nepalese cargo generally gets shipped from China on mother vessels (giant size) for Singapore port and gets unloaded there. Having collection of containers in adequate quantity, it gets reloaded onto next feeder vessels (small size) for Calcutta port. The entire sea journey from China to Calcutta generally takes approx 4650 Nautical miles (8611.8 Kilometers). Other side, rail journey from Lanzhou to Shigatse would take only 2,431 kilometers. A part from these two transit points, further distance from Shigatse to Kyirong/ Rasuwagadhi and from Rasuwagadhi to Kathmandu are around 564 km and 160 km respectively. In this way, the total distance from Shigatse to Kathmandu or Calcutta to Nepalese Boarder is nearly similar.
Recently, The Trade Post (published by The World Bank) has published a analytical report that the basic causes behind dearness in landlocked countries are higher transit cost and poor logistic service. It means transit cost matters the most. At a glance, Lanzhou to Shigatse route seems extremely shorter. However, it’s yet to audit it’s transit cost. It has been seen that 80% of total int’l transportation is dependent on sea route. Since, transportation by ship has been proved as the most cost effective mean in comparison of other kind of means. Let’s hope that the transit cost of new route would be economic than existing sea route.
The trading route of Tatopani- Khasa and Rasuwagadhi- Kyirong aren’t recently discovered routes at all. These routes have been used for centuries. The fort at Rasuwagadhi recalls the memory of war between Nepal and Tibet. During regime of King Mahendra, these two routes had got special consideration for Sino-Nepal trade. Till last year’s earthquake in Nepal, the trade through these routes was occupying around 10% of total import from China and 50% of total export to China. Due to massive damages in these two routes, the trade had come to the halt. Rasuwagadhi- Kyirong route was restarted after 6 months. However, Tatopani- Khasa route is in uncertain status till now. Observing earlier records, experts say, “Rasuwagadhi- Kyirong route definitely would get trading movements, but with very thin density in comparison of total Sino Nepal trade.”
Previously, only road transportation was possible in Khasa-Tatopani and the Rasuwagadhi- Kyirong routes. Those days it was obligatory to load/unload and transship the cargo at some transit points. Additionally, heavy weight and extra length trucks weren’t entitled to move on such treacherous road. As the result, mostly heavy/bulky cargoes were compelled to be transported through sea/rail/road route. Now, 75 % journey of Rasuwagadhi- Kyirong route would be completed on rail. As China Government has assured, rest 25% journey too would be equipped with rail track very soon.
Beside these potentialities, China Government has agreed to construct inland container depot (ICD) at Larcha of Sindhupalchowk and Timure of Rasuwa within due time frame. It means the hassles of loading/unloading and transshipment in some transit point would be eliminated. The cargo, which would start from Lanzhou, would directly arrive at ICD, Timure, Nepal. As the result, the cost of transportation would be slashed down. Additionally, bulky/weight/lengthy cargo too would be transported in this route. However, these potentialities still are on paper only and rely upon the whole hearted execution from both countries.
The ground reality says, “Transportation on this mountainous route, which lies above the altitude of 8856 ft above sea level, would be the most costly and crucial task.” According to Himalaya (the Journal of the Association for Nepal and Himalayan Studies), the route of Rasuwagadhi to KTM is one of the most landslide-prone areas in Nepal. During each monsoon season, it’s very common to experience of the cutting off of the existing road for days and sometimes weeks. Crossing the area at any time is slow and tortuous. Numerous geological reports say, “The area is very close to the Main Central Thrust [MCT] of the Himalaya. This is the weak junction where the Indian plate slid under the Asian plate causing the Indian plate to shatter and crush.
Considering geographical proximity of this route, the movement of cargo in this route throughout the year seems a great challenging task. However, the Ministry of Physical Infrastructure and Transportation, the Nepal Army and Department or Roads have been assigned to widen the Galchi-Trisuli- Mailung-Rasuwagadhi Road to two lanes and black top it within earliest period. Though, it reflects silver line amid black clouds. We shouldn’t ignore presence of black clouds there; otherwise, the country may have to face another disaster in this route. Let’s be technically equipped for this route.
A part from these potentialities as well as geographical proximity in rail/road route, we still have to face further more hassles—red tape and other legal procedures at China – Nepal Boarder. Simplified customs control mechanisms, equipped with latest information & communication technology and client friendly procedures would be the basic condition for the success of this route. We yet have to see the initiation from Nepalese and Chinese Government for the upgradation of their Custom Check post and Immigration process at boarder.
Presently, we have total 15 transit route to access Calcutta seaport, among which Srisiya Dry Port is the busiest entry point. Here also, we have been experiencing extreme delay in unloading/ de stuffing, documents clearance, handing over of empty containers etc. As per existing trading norms in sea cargo, Nepalese Importers are entitled to return empty containers to shipping companies within given time frame. Otherwise, heavy penalty had been imposed. No doubt, these lacking have been burdening us extra transit cost. Despite these lacking, these routes have been serving us for round the year and much convenient for lengthy/ weighty cargo as well.
Previously Kyirong -Rasuwaghadi route was limited to light weight and loose cargo. Therefore, there was no such kind of obligation to return empty container. However, as soon as rail/road route come into full swing, containerized cargo with 40’ length and heavy/bulky commodities too would be unloaded at ICD of Timure, Nepal. And we will have to face extra cost and burden to return empty container within given time frame as it had been happening in Sea/ Rail/ Road route. It would be better to exercise for amicable solution in this regard as well.
Despite all proximity, we shouldn’t give up dreaming. After all, any success story begins with such dreaming only. Let’s grasp the dreaming as a portraying on a canvas. As we see, the half finished canvas always gives ugly appearance. A mature artist, therefore never gives up his portrayal until he/she fills the colours on canvas as he/she was dreaming for. At present, the Lanzhou-Shigatse- KTM route is like a half finished canvas. Presently, It at least would grasp the earlier business transactions of Tatopani- Khasa route. As soon as the Railway linkage between China and Nepal would come into execution, the canvas would be mostly completed. And, of course it would be most beautiful canvas. We would be able to enjoy the optional route for China Nepal trade in real sense.
Written by: Ganesh Prasad Lath