According to officials, the operational modalities will be tabled in Nepal-India commerce secretary-level meetings scheduled to be held in May.The government began preparation for bringing the alternative port, which is believed to be more efficient, into use after Nepal and India signed Letter of Exchange (LoE) during Prime Minister KP Sharma Oli's India visit in the third week of February.
Rabi Shankar Sainju, spokesperson of Ministry of Commerce, said that a committee has been formed under him to prepare the operational modalities. The committee will also have representation from the private sector.
After signing transit agreement with China, MoC officials have begun work to bring into implementation transit agreements signed with India in February.
"We will prepare the modalities after holding rigorous discussion with stakeholders. The modalities will be tabled in the commerce secretary level Inter-Government Committee meeting which is expected to be held in New Delhi in May" added Sainju.
So far, Nepal has been using Haldiya port of Kolkata for third country trade. Though distance between Birgunj and Vishakhapatnam is double than the distance between Birgunj and Haldiya port, traders say the new port will be cost-efficient for bulk trading.
Nepali traders can bring bulk cargo from Vishakhapatnam port which is enables movement of mother vessels. Haldiya port supports movement of only feeder vessels which are half the size of mother vessels. Also, traders are facing different hassles in Haldiya port which is very congested.
Hari Bhakta Sharma, president of Confederation of Nepalese Industries (CNI), said the alternative port can be used when there is any disturbance in Haldiya port. "The Vishakhapatnam port can be strategically important for us," he added.
MoC officials believe that the Vishakhapatnam port, which is managed by the private sector, is efficient and competitive compared to that Haldiya port which is managed by an Indian government agency.
Commerce Secretary Ngaindra Prasad Upadhyaya told Republica that they were mulling over setting up an office of the Office of Consulate General of Nepal in Kolkata in Vishakhapatnam to facilitate Nepali traders.
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