China allows Nepal to use its ports

China allows Nepal to use its ports


New Delhi, Sept 08: China will allow Nepal the use of four of its ports, the Nepali government has said, as the landlocked Himalayan nation seeks to end India's monopoly over its trading routes by increasing connections with Beijing.

Wedged between China and India, Nepal depends heavily on India for supply of essential goods, including fuel and the use of its ports for trade with other countries. But Kathmandu has sought access to Chinese ports to reduce dependence on India since a prolonged blockade with India in 2015 and 2016 left the country short of fuel and medicine for months.

Officials from Nepal and China finalised a protocol during a meeting in Kathmandu giving Nepal access to the Chinese ports at Tianjin, Shenzhen, Lianyungang and Zhanjiang, the Nepal Commerce Ministry said. It said China had also agreed to allow Nepal use its dry (land) ports at Lanzhou, Lhasa and Xigatse as well as roads to these facilities. The arrangements will come into effect when the protocol is signed.

'This is one of the milestones because we are getting access to four Chinese ports in addition to two ports in India,' Mr. Rabi Shankar Sainju, a commerce ministry official, said. He added that Nepali cargo from Japan, South Korea and other north Asian countries could be routed through China which would cut shipping time and costs.

Overland trade is now routed mainly through Kolkata which takes up to three months, officials said.

New Delhi has also opened the southern port at Vishakhapatnam for Nepali trade. Traders say the plan to connect the country with China could face issues because of a lack of proper roads and customs infrastructure on the Nepalese side of the border.

The nearest Chinese port is also located more than 2,600km from the border.