Nepal Could Emerge As Transit Hub

     The Customs dilemma that tops the agenda at Bangkok next week reverberates worldwide.
     As example this past summer on July 29, 2005 at the Nepal Freight Forwarder Association (NEFFA) “11th Cargo Day” attendees were told what they already knew, that the export business of Nepal has faced deterioration, due in part to customs difficulties.
     A total of 8,640,180 kilos of cargo was uplifted in fiscal year 2003/04 while 7,470,185 kilos was exported in 2004/05, a 12% drop in business.
     As usual it was decided the culprit was the paperwork jungle as the excessive shipment documentation process in Nepal created continual delays.
     When you look at a map and think about it, Nepal is an excellent case in point for the rapid modernization of EDI in air cargo.
  Landlocked between India and China, Nepal is one of the most beautiful and poorest nations on earth.
     From the heights of Mount Everest to the main runways of Tribhuvan International Airport (TIA) in Kathmandu may not be that great a distance, but the airport is surely the life blood of commerce in this country of 27 million, just as its majestic mountains point the way up for everybody else.
     According to the Rising Nepal, a report made public at the NEFFA conference said that aside from some political unrest in Nepal earlier this year, paperwork demands made by Nepal customs, bribery and underdeveloped airport infrastructure are the root causes holding back Nepal’s export business.
     The TIA air cargo complex desperately needs proper storage for dangerous and valuable goods and better perishables storage, NEFFA said
     Both NEFFA and exporters in Nepal agree that upgraded perishables facilities at TIA cargo terminal as part of an enlightened cool-chain culture, will unlock export possibilities for locally grown vegetables, fruits, seeds, tea and herbs to world markets.
     NEFFA has appealed to the government to create the infrastructure that will allow Nepal to compete as an international air cargo transit hub.
     Noting growing capacity pressures on Indian airports, NEFFA says Nepal can seize an opportunity to direct traffic into Nepal that could serve as an effective cost efficient transit alternative for goods bound into both India and China.
     Recently Nepal King Gyanendra, addressed the 13th South Asian Association for Regional Conference (SAARC) Summit in Dhaka, Bangladesh saying that Nepal’s offer to serve as a transit point between India and China, the two largest emerging markets in the world, has been born out of its deep conviction that it would “provide a level playing field for both our neighbors to reap benefits of a promising global economic order.”
     We are thinking that Kathmandu might use name association and some money, to attract business.
     As example, in the U.S. a long overlooked airport facility called Rockford Illinois located about 90 miles from Chicago O’Hare International changed its name to Chicago/Rockford International a month ago and just like that, both United Airlines and Northwest Airlines commenced service.
     Both carriers are currently in bankruptcy, so the average $2.5 million in business guarantees Rockford taxpayers put up to both carriers helped seal the deal.
     But looking at the map here we wonder, could TIA be sold as Delhi/Kathmandu or Lhasa/Kathmandu?
     As we went to press the NEFFA members had called a strike following disputes between contractors and laborers over parking fees and identity cards and indicated that services will not be resumed until all the problems are addressed properly. Your move . . .
(Geoffrey)