Asian Transport Outlook data to support larger and more sustainable transport sector

 The Asian Development Bank (ADB) has released a first batch of data as part of a new regional knowledge platform to guide sustainable transport development in Asia and the Pacific.

The Asian Transport Outlook (ATO) will support the planning and delivery of transport sector assistance by ADB, as well as transport policy and initiatives by Asian governments, in line with the Sustainable Development Goals (SDGs), Paris Agreement, and other international agreements, according to a press note issued by the ADB.

"This first batch of information reminds us of the challenges faced by economies in Asia and the Pacific in developing the transport sector as they start to look at the period beyond COVID-19,” said ADB vice president for Knowledge Management and Sustainable Development Bambang Susantono. "We are now getting data that detail the shortages in transport infrastructure and transport services experienced by ADB members," he said, adding that it will help ADB, its member governments, and other stakeholders to build back the transport sector in Asia and the Pacific in a more sustainable manner in the coming years.

The ATO collects, organises, and shares data on the transport sector in economies using more than 400 indicators. The first batch of information includes data for 234 indicators on the status of transport infrastructure, transport activity, access and connectivity, road safety, climate change, air pollution, and health, as well as socioeconomic conditions. The ATO will also document the institutional frameworks, policies, and financing of transport in these economies.

More batches of data on the transport sector will be released in the coming months, it adds.

The ATO is developed on behalf of ADB by the Partnership on Sustainable Low Carbon Transport (SLOCAT), the leading global multi-stakeholder partnership on sustainable, low carbon transport.

"The ATO will help ADB and SLOCAT in mobilising the transport community in support of evidence-based action on transport in Asia,” said SLOCAT secretary general Maruxa Cardema. “The coming years will be decisive in determining whether we are meeting the objectives of the SDGs and the Paris Agreement. The manner in which the transport sector in Asia develops is key for both processes and the ATO will tell us whether we are on track."

The ATO is a multiyear programme with the potential to serve as the primary knowledge base on transport in Asia. To make this a reality, ADB will make ATO data freely available to all and is encouraging transport planners and policymakers to make use of ATO data in their work. To enhance the success of the ATO, ADB is calling on all organisations working on transport in Asia to freely share their data.

ADB approves about 40 transport projects per year, the press note reads, adding that over the last 3 years, the average combined annual commitments were in excess of $5 billion.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members, 49 from the region.

Asia-Pacific countries commit to advance regional cooperation for sustainable connectivity

 Recognising that the Covid-19 pandemic has caused widespread socio-economic impacts and disruptions across Asia-Pacific, high-level officials called for a rethink on the future development of sustainable transport connectivity and mobility in the region at the sixth session of the Committee on Transport, today.

Convened by the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP), the two-day meeting highlighted pressing regional priorities and areas for policy interventions in the transport sector. Central to discussions were transformative actions for a more sustainable, efficient and resilient regional transport connectivity against the backdrop of the Covid-19 pandemic.

“By anchoring regional connectivity, there is a real opportunity to transform transport systems and services to follow a low-carbon development path, increase the share of clean energy and adopt innovations and emerging smart transport technologies to improve environmental sustainability in Asia and the Pacific,” said UN under-secretary-general and executive secretary of ESCAP Armida Salsiah Alisjahbana.

“Our region faces significant challenges due to the Covid-19 pandemic with the transport sector being one of the hardest hit, and our collective efforts to implement the 2030 Agenda for Sustainable Development now face strong headwinds,” underscored minister of Transport of Thailand Saksayam Chidchob in his opening remarks.

The Asia-Pacific region has made great efforts to preserve transport connectivity during the pandemic. Member countries of the Asian Highway network have maintained all or a significant part of their land borders open for freight. Freight transport has proceeded with limited interruptions along the Trans-Asian Railway network.

The pandemic has also created great momentum for digitisation and shown that there is high potential for a more balanced and sustainable modal split of freight transport, as the use of rail has grown to compensate for the interruptions in road transport operations.

However, significant financial losses sustained by the transport sector will have a lasting impact on its competitiveness in the aftermath of the pandemic.  The Asia road freight industry is expected to experience a turnover decline of 21 per cent in 2020 and rail freight by $1.7 billion for 2020 and 2021. 

In this regard, the Committee also discussed the direction of the next phase of the Regional Action Programme for Sustainable Transport Connectivity in Asia and the Pacific (2022 – 2026), which will be further developed, in close consultation with member countries and submitted for endorsement at the fourth Ministerial Conference on Transport in October 2021.

The next phase of the Regional Action Programme is expected to include accelerated and transformational changes towards more resilient, environmentally sustainable, and safer transport and mobility services in the region. Ambitious actions to incorporate broader social development elements such as gender equality, safety, accessibility, and inclusion in the transport sector were also proposed.

Held every two years, the Committee on Transport provides countries in the Asia-Pacific region with a platform to exchange views, good practices and recommend policies to align the transport sector with sustainable development objectives. The sixth session of the Committee was attended by high-level participants from 38 member countries and 32 organisations.

Government, World Bank sign $450 million road support project

The government and the World Bank signed a $450 million (around Rs 54 billion) Financing Agreement that will help Nepal improve the efficiency and safety of transport infrastructure, improve efficiency of cross-border trade, and strengthen capacity for strategic road network management. This is the single largest value project that the government has signed with the World Bank.
The agreement was signed by the finance secretary Sishir Kumar Dhungana on behalf of the government and the World Bank country director for Maldives, Nepal and Sri Lanka Faris Hadad-Zervos, in the presence of finance minister Dr Yuba Raj Khatiwada.
“We thank the World Bank Group for supporting this important project, which will enhance connectivity and country integration along with cross border markets to support post-Covid-19 recovery,” finance minister Dr Yuba Raj Khatiwada said, on the occasion. “Connectivity is high on the rapid and sustainable development agenda of Nepal,” he said, adding that sustainable transport and sustainable, inclusive and high-quality infrastructure are of cross cutting importance for accelerating economic growth, national and regional economic integration and attaining the sustainable development goals.
“The project, with its focus on reducing time and cost of moving goods via key transport corridors and border crossing points, will be key to sustain and accelerate our economic growth, especially aiding recovery in the immediate aftermath of Covid-19,” finance secretary Sishir Kumar Dhungarna said after signing the agreement. “We are also looking forward to this project to introduce and demonstrate best practices in several key areas ranging from safety and climate resilience to road asset management and citizen engagement, and hoping to replicate them at the federal, provincial and local levels of the government,” he added.
The government is working on a 3R – Relief, Recovery and Resilience – strategy to help Nepal build back better from the impacts of the Covid-19 crisis, a press note issued by the World Bank reads, adding that this project will be critical for boosting economic possibilities and enhancing trade facilitation to speed up recovery and resilience. “The Strategic Road Connectivity and Trade Improvement Project supports Nepal’s connectivity and trade with neighboring countries including India.”
The project will improve the Nagdhunga-Naubise-Mugling road and upgrade the Kamala-Dhalkebar-Pathlaiya road to four-lane. The project will also enhance infrastructure, facilities and sanitation at border crossing points to ease trade constraints and spur agricultural exports. Amid the Covid-19 pandemic, the project will also support better screening of goods and people at border facilities, and develop guidance for special working arrangements, such as safe distancing and remote working.
“This project supports the government’s efforts to put Nepal on the path to economic recovery amid the impacts of the Covid-19 crisis,” World Bank Country Director for Maldives, Nepal and Sri Lanka Faris Hadad-Zervos said, after signing the agreement. “It will help facilitate regional trade and connectivity and create jobs while ensuring safety and efficiency of the strategic roads network.”
The project will also support institutional strengthening of the National Road Safety Council and the Department of Roads, and periodic maintenance of high-traffic roads within the Strategic Road Network. A contingency emergency response component is also included in the project to reallocate project funds to support emergency response and recovery.

Railway passengers without ticket to be fined Rs 25,000

If anyone travels without buying a ticket in the railway, the person will have to pay cash penalty of Rs 25,000.
The government has – in the new Railway Bill – brought some of the strict provisions, as the Janakpur-Jayanagar railway is about to start operation. After being endorsed by the House of Representatives, the government today tabled the Railway Bill at the National Assembly for final approval.
The government has been long planning to operate railway services in a number of possible routes in and out of the Kathmandu Valley. “Apart from the railway service between Kurtha of Janakpur and Jaynagar of India, the government is planning to operate the new transport means in Kathmandu-Raxaul, Kathmandu-Kyirong and Nijgadh-Hetauda-Bharatpur routes. Likewise, the East West Electrified Railway is also an ambitious project that the government has planned in order to improve connectivity within the country.
Currently, the sector is managed under the provisions of Railways Act 1963 but the government has revived Nepal Railway Company by revising the organisational structure of the old company, and also with a legal teeth. A fully autonomous Nepal Railway Board will work as the regulator of the sector, the Bill reads, adding that the board will be authorised to manage separate travelling ticket examiner to ascertain whether passengers are traveling with ticket or not.
The Bill has provision allowing the Nepali company to extend railway service in other countries or foreign companies to extend their services up to Nepali land. Likewise, any foreign company wishing to operate railway service via Nepali land to connect to the third countries will be given permission based on mutual agreement, it reads.
“The government in accordance with the concerned countries can enforce its own conditions, mechanism and work guidelines,” the bill reads, allowing the government to form a separate unit for the security of the railway lines and related services. It has sought a separate license for the operator of the railway service. “But the operator must be a 10 grade pass or above to be eligible for the job.”

Nepal needs additional investment of $879 million for safer roads

Nepal needs to invest an estimated extra $879 million in road safety over the next decade to halve its road crash fatalities, according to a new World Bank report.
Released today at the Third Global Ministerial Conference on Road Safety in Stockholm, the report ‘Road Safety in South Asia: Opportunities for Shared Regional Initiatives’ points to the high death rate on the roads in the eastern subregion – which comprises Bhutan, Bangladesh, India, and Nepal – caused by chronic lack of investment in systemic, targeted, and sustained road safety programmes and identifies relevant investment priorities to reverse the trend.
In Nepal, road crash deaths and injuries have been on a sharp upward trajectory since the early 2000s with a fatality rate of 8.59 per 100,000 population in fiscal year 2017-2018 as per official reports.
“Years of rapid economic growth in South Asia, followed by a steep rise in vehicle ownership have led to mounting traffic deaths and contributed to lost economic opportunities,” said World Bank vice president for South Asia Hartwig Schafer. “South Asia’s road safety crisis is unacceptable but preventable,” he said, adding that the good news is that South Asian countries recognise the urgent need to protect their people, save lives, and sustain their journey toward greater prosperity. “We at the World Bank stand ready to support their efforts.”
While urgent national-level actions in countries across the eastern subregion, which accounts for the bulk of South Asia’s population, vehicles, and road crash fatalities, remain a top priority, the report also calls for regional initiatives to make roads and vehicles safer.
The report emphasises the need to focus on regional trade corridors where crashes are significant, and roads are unsafe. All categories of road users and vehicle types – animals, pedestrians, bicycles, rickshaws, motorcycles, motorized three-wheelers, cars, minibuses, buses, mini trucks, trucks, and agricultural vehicles – are represented in these corridors with narrow lanes, limited or no shoulders, and inadequate pedestrian facilities.
The road safety conditions on these regional corridors mirror the nature and scale of conditions prevalent on national highways. Crash data collected in a sample of highway sections across Nepal, India, and Bangladesh reveal alarming annual fatality rates ranging from 0.3 to 3 fatalities per kilometer, at a yearly average of 0.87 fatalities per kilometer.
To better monitor the effectiveness of road safety efforts, the report recommends a shared regional initiative to harmonize crash data management and analysis systems across South Asia. Currently, South Asian countries are in varying stages of developing crash data and performance management systems that analyse the underlying factors behind each crash; whether it was defective road infrastructure, faulty vehicle design or human error.
The report suggests South Asian countries could join the proposed regional road safety observatory for Asia and the Pacific to complement these efforts and to facilitate more rapid and effective knowledge transfer.
“Historically, when countries reached motorisation levels of between 50–100 vehicles per 1,000 people, road crashes became one of the leading causes of death and injuries,” lead transport specialist at the World Bank Arnab Bandyopadhyay said, adding that improving road safety was then recognised as a national development priority. “This holds important road safety lessons for the South Asia region where the rate of vehicle ownership has doubled over the past decade and remains on an upward trajectory.”
The report's proposed regional initiatives will go a long way in helping countries improve road safety, he added.

Nepal, China agree to conduct feasibility study of Kathmandu-Kerung railway service

Nepal and China agreed to start feasibility study of the Kathmandu-Kerung railway service.
The authorities from the two countries decided to start the feasibility study of the much-hyped cross border transportation project during a meeting in Kathmandu today. “The two countries had decided to expedite the process of constructing the railway line during the state visit of Chinese President Xi Jinping to Nepal in October,” according to a press note issued by the Foreign Ministry.
“A 21-member Chinese team arrived Kathmandu yesterday to implement the decision taken during Xi’s visit,” the press note reads, adding that the authorities of the two countries signed an agreement during today’s meeting to start the feasibility study.
The representatives of the Ministry of Physical Infrastructure and Transportation and visiting officials from China’s National Railway Administration – on the occasion – divided the responsibilities during the meeting.
“The Chinese side will conduct aerial mapping and geographical study, while the Nepali side will prepare the environment impact assessment report and provide security to the Chinese team,” informed the director general of the Railway Department Balaram Mishra. “The Chinese side will also prepare the detailed project report at its own expense,” he said, adding that the Chinese side has, however, maintained that it needs to study the project in detail as it is being constructed in one of the most challenging terrains in the world.
The Chinese side has, though not in clear words, been repeatedly saying that construction of much-hyped Kathmandu-Kerung railway is not a cake walk rather a challenging task, and takes long time.

Pokhara-Muglin highway to be widened to four lanes

The Asian Development Bank (ADB) has approved a loan of $195 million to improve the highway section between Pokhara and Mugling, which links Pokhara to Kathmandu and to subregional corridors connecting Nepal with India and Bangladesh.
“The project will boost the traffic capacity, reliability, and safety of the main road link from Pokhara,” said ADB transport specialist Johan Georget. “The highway will be widened to four lanes, and this will reduce travel times, lower transport costs, and improve access to domestic markets, jobs, and social services,” he said, adding that the upgraded highway will also open a wider gateway for Nepal to international markets, especially in India, and facilitate the arrivals of tourists to the region of Pokhara and its hinterland.
The project is part of a major trade corridor and feeder roads of the South Asian Association for Regional Cooperation (SAARC) and the South Asia Subregional Economic Cooperation (SASEC), linking Kathmandu with Dhaka and Chittagong through India.
As a landlocked country, Nepal relies heavily on direct neighbours for international trade, mainly India, which traded 65 per cent of Nepal’s imports and exports. But while roads are the predominant mode of transport in Nepal for more than 90 per cent of goods and passengers, the density and capacity of the road network remains low. This infrastructure deficiency hampers the economy, resulting in high operating costs and travel times, and impeding the development of competitive supply chains, tourism, and regional integration and trade.
Nepal’s economic growth improved to 7.3 per cent a year on average between fiscal years 2017 and 2019, compared with about 3.3 per cent in the previous three fiscal years. The
The 200-kilometer (km) journey from Pokhara – a prime tourist destination at the foot of the Himalayas – to the capital Kathmandu takes more than 5 hours by road. It is currently a two-lane highway that handles about 7,400 vehicles a day. As the number of vehicle registrations has been rising and total vehicles are expected to quadruple by 2029, upgrading national highways is a priority to support economic development.
Under the project, 81-km of the road will be widened to four lanes from Pokhara to Abukhaireni to meet increasing demand. Improvements will be made to the surfacing, structure, and drainage, with safety features like crash barriers, and traffic and other warning light systems installed. A second 8-km section between Mugling and Abukhaireni will be considered for a subsequent project.
The road will be divided by a median, while service lanes in urban areas will improve safety, especially for pedestrians, bicycles, and motorcycle users. This is especially important since the country suffers a high rate of almost 16 deaths per 100,000 people due to traffic. Performance-based maintenance contracts of 5 years will strengthen road management and maintenance. The project will also install a landslide monitoring and management system to strengthen disaster resilience, according to a press note issued by the Asian Development Bank (ADB).
The total cost of the project is $254 million, of which the government will provide $59 million, it reads, adding that the project is due for completion at the end of 2025. “Accompanying the loan is an ADB technical assistance grant of $500,000 to strengthen disaster risk reduction, landslide management, road safety, and procurement in the Ministry of Physical Infrastructure and Transport and Department of Roads.”
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members, 49 from the region.

Airlines add flights to ease festive commute

Domestic airline companies have increased flights to facilitate festive commuters.
According to Airlines Operators Association of Nepal (AOAN), the airline companies have increased flights to destinations where the flow is comparatively higher. “Airline companies have increased the number of flights to various destinations as per the demand of the public,” AOAN spokesperson Yog Raj Kandel said, adding that the passengers have been complaining that they are facing hassles in obtaining air tickets, thus additional flights will ensure availability of air tickets during Dashain festival. “The airline companies have increased up to 50 per cent flights to various destinations depending on the flow of passengers.”
The flow of air passengers during Dashain has gone up significantly in recent years forcing the airline companies to add flight frequency also due to bad road conditions. This year too, the airline companies are ready to further add more flights in Dashain, if required, he said.
However, the passenger occupancy in flights from Kathmandu to various destinations is almost 100 per centbut occupancy in the flights to Kathmandu is less than 20 per cent due to out flow of people from Kathmandu to their respective home districts. It is expected that almost 2.5 million people will leave Kathmandu during Dashain festival. According to the Traffic Police, almost 1.5 million people have already left the valley till today.
Likewise, transport entrepreneurs have also added vehicles on routes where the flow of passengers is higher.
According to general secretary at the Federation of Nepalese National Transport Entrepreneurs Saroj Sitaula, they have added the buses on long and short routes to cater to the urgency of the passengers to reach home for festival. The Department of Transport Management has also opened all land routes for all public vehicles across the country.

VCTS, to check revenue leakage, comes into operation

The government has brought Internet-based vehicle and consignment tracking system (VCTS) into implementation from today to track all parties involved in business activities, ranging from importers to consumers.
Finance Minister Dr Yuba Raj Khatiwada inaugurating the modern system amid a ceremony in Kathmandu today, said that the system, which will also be linked with the customs, all transportation companies, importers or entrepreneurs must have to make entry of their goods and consignments in a centralised website before transportation of goods from one destination to another inside the country with the enforcement of the tracking system. “The digital measure is aimed at combating revenue leakage,” he said, adding that the Internet-based entry will be required only for wholesale entrepreneurs.
According to Department of Revenue Investigation (DoRI) – with the implementation of the tracking system – importers and entrepreneurs will be able to get real-time update of the movement of their consignments. “The tracking system will ensure greater transparency in import business, check smuggling of goods and discourage the use of fake Value Added Tax (VAT) bill,” the department said, adding that the department will remove its all 10 check-posts across the country after the implementation of the new system.
The private sector leaders, however, said that they need some time for adaptation to the new system, though the VCTS is beneficial for truckers and entrepreneurs as it will end the hassles emanating from manual checking of documents during transportation. “Since Nepal does not have a reliable Internet system yet, the immediate and full-fledged implementation is doubtful,” the private sector said, urging the government to roll out the system in a gradual way.
However, the government has made the system mandatory. The department has warned that it will fine up to Rs 50,000 for those who violate the provision of mandatory entry of consignments in the website after three months of the new system coming into operation. However, the second time offender of the rule will face a fine of up to Rs 100,000.

China wants some concerns to be addressed before cross-border railway DPR talks

China has sought clarity on five basic issues ahead of Detail Project Report (DPR) for the Kerung-Kathmandu railway, during the fourth Nepal-China bilateral meeting that concluded today in Beijing without entering the agenda of the DPR.
Chinese officials asked the Nepali side to first meet the standards set by a pre-feasibility study for the project. Chinese officials at the meet pointed out the need for further technical study of the report, it had prepared earlier conducting a pre-feasibility study and submitted to the Nepal government.
Likewise, the Chinese officials asked for preparations to tackle the engineering challenges that may arise in future, and sought an in-depth study on minimizing possible geological disaster. The Chinese side also showed concern about measures to be taken to ensure the security of the railway system, apart from the need for a scientific study to minimize ecological impact in the affected areas.
China will enter into the matter of the feasibility study – also called the DPR – only after settling the the concerns it showed during the meeting, according to a participants in the meeting, though deputy chief of Mission at the Nepal Embassy in Beijing Sushil Kumar Lamsal claimed that both sides were encouraged by the output of the bilateral talks.
The Nepali team – led by secretary at the Ministry of Physical Infrastructure and Transport Devendra Karki for the fourth meeting in Beijing held the discussion with the Chinese team – led by deputy administrator of China's National Rail Administration An Lu Shan – agreed to hold fifth meeting in Kathmandu in December. The meeting might enter into the feasibility study, only if work Nepal addresses the five-point concern raised by Beijing, according to the Nepali teammates.
The Nepal-China railway mechanism was established two years ago. Its first meeting was held in November 2017 in Kathmandu, whereas the second meeting was held in Beijing and the third again in Kathmandu followed by the current meeting, the fourth one in Beijing.
The fifth meeting will be held in Kathmandu in December..

Debt trap warnings over BRI projects motivated by bias: FM Gyawali

Foreign minister today dismissed the notion that Nepal could fall into a Chinese debt trap, if it chose to be part of the Belt and Road Initiatives (BRI).
The argument that Nepal could fall into a Chinese debt trap, if it chose to take loans under the BRI is motivated by bias," said foreign minister Pradeep Kumar Gyawali, addressing a press meet today.
There are some concerns from various quarters that BRI loans could possibly push Nepal into a serious debt trap like some of the countries in the world. "Nepal is aware what it should do and what it should not do in its national interests," he said, adding that Nepal is free to decide on its development initiatives. "Nepal will decide independently on Chinese loans and the selection of projects under BRI."
Arguing that Chinese debt was not behind the serious economic crises in many Latin American countries including in Argentina back in the 1990s and 2000s, he said that they were not under the Chinese debt trap. "Greece is still struggling with a serious economic crisis and many other countries have also fallen into debt traps,” he added.
He also explained that there is no rule that a country will fall into a debt trap through taking loans from any particular country and not fall into it when taking loans from another country. "The issue is whether Nepal selects a project on the basis of possible returns and what is the pay back plan," he added, though his government's selection of projects till date – since it came to the power with almost two-third majority – has not seen any suitable and economically viable projects.
Since Nepal is currently holding discussions with China on the projects to be incorporated into BRI, there are a couple of projects under consideration.
Gyawali also said that Nepal and China will sign the protocol of the Nepal-China Transit Transport Agreement during visit of President Bidya Devi Bhandari beginning from tomorrow. The protocol paves the way for the implementation of the agreement and allows Nepal third country transit facilities via Chinese ports. The first state level visit of a head of the state since the establishment of a federal republic is expected to connect Nepal's development endeavors with Chinese development success through the signing of protocol in the presence of the heads of the states.
Secretary at the Ministry of Industry, Commerce and Supplies Kedar Bahadur Adhikari will sign the protocol with his Chinese counterpart during the forum in the presence of President Bhandari. Though the protocol is said to allow more flexible terms for trade and transit – compared to India – and might be feasible for trading with South East Asian countries also, the cost of doing business through the new route is yet to be calculated.
The agreement allows open utilisation of either inland waterways or roads for transit and transport to sea ports for third country trade.
Nepal signed the Transit Transport Agreement with China in 2016 after trade blockade by India.
Likewise, President Bhandari is scheduled to take part in a roundtable to be hosted by her Chinese counterpart Xi Jinping and hold bilateral talks with Xi on April 29. Transport minister Raghubir Mahaseth will deliver a speech on 'Infrastructure and Connectivity' during the forum.

Transport committees get more time to register as company

Citing the necessity to amend a few provisions in the existing Company Act to bring the large transport associations and committees under the company format, the government has today extended the deadline for the transport bodies – for the second time – to register themselves as a company till mid-March.
Though the government has decided – a few months ago – to end transport cartel, it has failed to implement the decision, presumably under pressure from transport entrepreneurs, and extended the deadline.
The three-month extension allows them to continue operating as committees, which means the public transport operators will run its cartel until then, though the government has promised an amendment in the Companies Act to insert a special provision for the existing bus operator committees to register as companies even if a committee is run by more than 101 individuals.
However retired secretary at the Ministry of Physical Infrastructure and Transport Tulasi Prasad Sitaula claimed that both the changes in the law were unnecessary. "This raises questions as to why should they be allowed to run a company with so many members," he said, adding, "No company requires that many number."
A joint meeting of three ministers – transport minister Raghuvir Mahaseth, industry minister Matrika Prasad Yadav and home minister Ram Bahadur Thapa – decided to allow them to run as bus operator committees for more three months on Thursday, only two days before the Dec 16 deadline.
According to director general at Department of Transport Management, the deadline has been extended for the final time. "The extension is basically intended to address a few concerns raised by the transport entrepreneurs," he said, adding that transport entrepreneurs had last week ‘officially’ agreed to switch to the company model but had set a few preconditions that include transferring transport bodies’ movable and immovable properties, including their vehicles and staffs to the new company.
By scrapping the registration of transport bodies including transport committees and associations earlier in April, the government had claimed that it would not renew their registration from mid-July, if they failed to transform into the company modal. But the  the government’s recent decision – for the second time – to extend the deadline for transport bodies to register themselves as company reflects government’s unwillingness to illegalise transport cartel.
The government move was, however, intended not only to end the monopoly of transporters in the public transportation sector and ensure its growth, but also to bring public transport sector, which makes billions worth transactions annually, under the income tax net of the government. The company model was also introduced to bring the transport operators into tax net, formalise the transport service sector, stop them from manipulating the services, and make public transport a properly organised system.
Publishing a notice a week ago, the department has informed that public vehicles that have not been registered with the department under the company model will not be allowed to ply the roads from December 16. However, going against its own decision to end transport cartel, the department has once again extended the deadline to register themselves into company till mid-March.
According to the department, only around 10,000 public vehicles – of the total 1,500 transport bodies – out of more than 200,000 public vehicles across the country have registered with the department under the company model so far.
The government’s move earlier this year was resisted by the bus operators, who defied the government’s announcement to convert them into companies. They called strikes and the public transport services came to a grinding halt.
Home Minister Ram Bahadur Thapa had led a move to arrest the operators for obstructing essential public service, and ordered seizing bank accounts of the transport committees, though tye resisted to the government move. But the committees surrendered to the government and promised to convert themselves into companies when their bank accounts were frozen. They were given a deadline of doing so until mid-July, but the government later extended it to December 16. 

Asia-Pacific countries strengthen regional transport connectivity to drive sustainable development

Countries in the Asian-Pacific region today reinforced their commitment to implement the Regional Action Programme for Sustainable Transport Connectivity in Asia and the Pacific, Phase I (2017 – 2020).
The Programme was adopted by ministers of transport of the region in December 2016 to foster greater regional consistency in addressing issues such as international intermodal corridors, modern logistics, Asia-Europe connectivity, rural transport, sustainable urban transport systems and road safety.
High-level policymakers of the region used the fifth session of the Committee on Transport, held by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) from November 19 to 21 to emphasise the significant contribution that sustainable transport connectivity can make to the realisation of the 2030 Agenda for Sustainable Development.
"The way we design, build and upgrade our transport networks will help determine whether the 2030 Agenda can be achieved in Asia and the Pacific," UN under-secretary-general and ESCAP executive secretary Armida Alisjahbana, said, in her opening remarks. "Reliable, integrated transport networks are essential to the fabric of successful economies and societies," she said, adding that they drive the trade, investment and growth the countries need to lift people out of poverty. "But our challenge is to make them accessible, safe and sustainable - as we chart a more inclusive, greener course for our region."
The Committee deliberated on the major transport development challenges faced by the Asia-Pacific region in light of the 2030 Agenda. Delegates shared information on their recent and planned activities for further developing and operationalising the Asian Highway Network, the Trans-Asian Railway Network and the network of Dry Ports. They also highlighted how a wide array of breakthrough technologies and fast-expanding networks of digitally-connected devices are providing new opportunities to increase the efficiency of the transport sector, while reducing its carbon footprint.
In his keynote address, Thai transport minister of Arkhom Termpittayapaisith reaffirmed, “The actions that Thailand is implementing towards sustainable transport are very much in line with ESCAP’s Regional Action Programme for Sustainable Transport Connectivity” and noted that 'Thailand is committed to promoting sustainable transport in advancing regional and global efforts in achieving the SDGs.”
Against the backdrop of a startling statistic that one person is killed in a road crash every 40 seconds in the Asia-Pacific region, first deputy minister of the Interior of the Russian Federation and ESCAP representative on the Advisory Board of the UN Road Safety Trust Fund Alexander Gorovoy called for attention to be given to enhancing safety, efficiency and sustainability of urban transport.
The Committee also agreed to promote the use of the Sustainable Urban Transport Index developed by ESCAP to help countries assess the quality of their urban transport services.

Trade war threatens outlook for global shipping

Seaborne trade expanded by a healthy 4 per cent in 2017, the fastest growth in five years, while UNCTAD forecasts similar growth this year, according to its Review of Maritime Transport 2018. Volumes across all segments are set to grow in 2018, with containerised and dry bulk commodities expected to record the fastest growth at the expense of tanker volumes.
The 2018 edition of the UNCTAD Review of Maritime Transport, marking its 50th year of publication, was launched at the Global Maritime Forum’s Annual Summit taking place in Hong Kong on October 3-4.
"While the prospects for seaborne trade are positive, these are threatened by the outbreak of trade wars and increased inward-looking policies,” UNCTAD secretary-general Mukhisa Kituyi said, adding that escalating protectionism and tit-for-tat tariff battles will potentially disrupt the global trading system which underpins demand for maritime transport.
The warning comes against a background of an improved balance between demand and supply that has lifted shipping rates to boost earnings and profits. Freight-rate levels improved significantly in 2017 – except in the tanker market – supported by stronger global demand, more manageable fleet capacity growth and overall healthier market conditions.
Supply-demand improvements, namely in the container and dry bulk shipping segments, are expected to continue in 2018. Freight rates may benefit accordingly, although supply-side capacity management and deployment remain key. UNCTAD projects an average annual growth rate in total volumes of 3.8 per cent up to 2023.
On the supply side, after five years of decelerating growth, 2017 saw a small pick-up in world fleet expansion. During the year, a total of 42 million gross tons were added to global tonnage, equivalent to a modest 3.3 per cent growth rate.
Looking at the shipping value chain, Germany remained the largest containership-owning country with a market share of 20 per cent at the beginning of 2018, although it lost some ground in 2017. In contrast, owners from Greece, China and Canada expanded their containership-owning market shares.
Meanwhile, in 2018, the Marshall Islands emerged as the second largest registry, after Panama and ahead of Liberia. More than 90 per cent of shipbuilding activity in 2017 occurred in China, the Republic of Korea, and Japan, while 79 per cent of ship demolitions took place in South Asia, notably India, Bangladesh and Pakistan.
Liner shipping consolidation, technological advances, and climate change policy are key drivers of change in global shipping, the report reads.
Consolidation activity in liner shipping continued unabated: the liner shipping industry witnessed further consolidation through mergers and acquisitions and global alliance restructuring.
As of January 2018, the Top 15 shipping lines accounted for 70.3 per cent of all capacity. Their share has increased further with the completion of the operational integration of the new mergers in 2018, with the Top 10 shipping lines controlling almost 70 per cent of fleet capacity as of June 2018.
Three global liner shipping alliances dominate capacity deployed on the three major East-West container routes, collectively accounting for 93 per cent of deployed capacity. Alliance members continue to compete on price while operational efficiency and capacity utilisation gains are helping to maintain low freight-rate levels. By joining forces and forming alliances, carriers have strengthened their bargaining power vis-à-vis the seaports when negotiating port calls and terminal operations.
Growing consolidation can reinforce market power, potentially leading to decreased supply and service quality, and higher prices. Some of these negative outcomes may already be in effect. For example, in 2017-2018, the number of operators decreased in several small island developing States and structurally weak developing countries.
“There is a need to assess the implications of mergers and alliances and of vertical integration within the industry, and to address any potential negative effects. This will require the commitment of all relevant parties, notably national competition authorities, container lines, shippers and ports,” director of UNCTAD’s Division on Technology and Logistics, Shamika N Sirimanne, said.

ADB to provide $180 million to improve East–West Highway

The Board of Directors of the Asian Development Bank (ADB) has approved a loan of $180 million to support improvements to East–West Highway, the country’s main domestic and international trade route also known as the Mahendra Highway.
“The highway’s road surface – Nepal’s busiest route – is in fair to poor condition and does not segregate oncoming traffic or slow-moving vehicles and pedestrians,” said ADB transport specialist Johan Georget. “Improving the road will boost the efficiency of Nepal’s transport system, strengthen national and regional connectivity to promote growth and trade, and improve road safety.”
Nepal’s road network, which includes eight north–south and three east–west corridors, carries more than 90 per cent of passengers and goods in the country. The project road carries an average of 8,600 vehicles daily, with more than a quarter of them heavy vehicles. This average is forecast to grow to 25,400 vehicles a day by 2033.
The project will improve and rehabilitate about 87-km between Kanchanpur and Kamala on the East–West Highway, and will upgrade the highway section to a four-lane dual carriageway to cater to the projected increase of traffic demand, including a new road surface and drainage. Road safety will be significantly improved, as a center median will reduce head-on collisions, while service lanes in populated areas will reduce rear-end, sideswape, and side-on collisions, particularly for pedestrians, motorcycles, and cyclists.
The project will also finance civil works and equipment packages to improve road safety along the entire 1,027-km of the East–West Highway, and support road safety campaigns. The loan will also finance preparation of detailed designs for future road projects along the corridor. Accompanying the loan is an ADB technical assistance grant of $750,000 to help prepare a national road safety policy and action plan, strengthen the road safety council, carry out a road safety assessment of the corridor, identify the location of potential service areas, and promote gender equality measures in the transport sector.
Contractors are currently invited to purchase bidding documents and submit their proposals, and construction is expected to start in the first quarter of 2019. Civil works contracts will include a performance-based maintenance period of 5 years after completion of construction, which is due to finish in 2022.
The total project cost is $256.4 million, of which the government will $76.4 million.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 67 members, 48 from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in cofinancing.

World Bank helps improve bridge connectivity and access

The World Bank today approved a $133 million credit to help Nepal construct and maintain safe, resilient and cost-effective bridges on its Strategic Roads Network. The Strategic Roads Network (SRN) comprises transport backbone and includes roughly 12,142 kilometers of national highways, feeder roads and other roads of national importance that are connected by 1,773 bridges.
The Second Bridges Improvement and Maintenance Program (BIMP II) takes aim at ensuring that Nepal’s bridge development efforts can support the connectivity required for economic growth and development across the seven provinces. New initiatives under BIMP II include support to improve bridge resilience and enhance inclusion of non-motorised transport modes using advanced technical designs.
The credit is targeted to provide support to approximately 477 bridges in Nepal in different ways. This includes maintenance support to approximately 90 bridges and upgrading road safety measures on approximately 180 existing bridges to help reduce accidents, injuries, and fatalities on roads. The programme will also support construction, rehabilitation or replacement of approximately 80 new two-lane bridges and 35 four-lane bridges. In addition, it will help the Department of Roads (DoR) complete construction of 92 bridges that are vital to improving connectivity and access throughout Nepal.
“Nepal needs a strong bridge network and even stronger institutions to manage and develop that network into the future," World Bank Country Manager for Nepal Faris Hadad-Zervos, said, adding that BIMP II aims at supporting both the network’s physical development as well as the government systems that manage it. "We hope that the improvement of bridges in the most crucial road network of the country will lead to increased and easier access for all the people in Nepal, while reducing the cost and time of transport and trade."
The predecessor to BIMP II – which was BIMP I – was one of the first two operations globally to use the Program for Results (P4R) financing instrument that links disbursement of funds directly to delivery of verifiable results. The current operation builds on this experience and uses a ‘hybrid’ design that also combines results-based disbursement with a component of traditional financing to capture the benefits of both approaches. The combination of instruments provides a wider breadth of tools to ensure that government systems will be strengthened throughout implementation.
“The operation also has a strong focus on climate resilience, gender inclusion, and innovative technologies," senior Transport Specialist at the World Bank and co-task Team Leader of the Operation Dominic Pasquale Patella said. "For example, it includes an initiative for the advancement of female engineers and the establishment of a new Design and Advanced Technology Cell within the Department of Roads to manage the uptake of new technologies for bridge development,” he added. 

Transport operators refuse to open festival ticket booking

Transport operators have backed off from the deal – four days after agreeing – to open bus ticket booking for Dashain,.
Representatives from Federation of Nepalese National Transport Entrepreneurs’ Association (FNNTEA) and Department of Transport Management (DoTM) – on September 16 – had agreed to open bus ticket booking for Dashain from Friday.
The department and transporters had reached the deal to unfreeze the bank accounts of the blacklisted transport committees and review the fare after the festival season.
They have asked the government to adjust the transport fare according to hiked petroleum prices but the government instead hiked in the prices of petroleum products again.
"The government did not give any ear to us forcing us to back off from the commitment to open booking from tomorrow," FNNTEA president Yogendra Karmacharya said, adding that they cannot honour the deal since the government has increased the fuel prices instead of adjusting the earlier hike.
He said the government’s decision to raise the prices of petroleum products contradicted their demand for transport fare revision. "The transport entrepreneurs have long been demanding for a review of transport fare," Karmacharya said, adding that the government has hiked the fuel prices again instead of addressing our concern.
The state oil monopoly had raised the prices of petrol and diesel by Rs 2 and Rs 3 per litre respectively on the same day the FNNTEA and the department had agreed to open Dashain ticket booking.
However, secretary at the Ministry of Physical Infrastructure and Transport Madhu Sudan Adhikari assured that festival ticket booking service will open.
"We had agreed to facilitate the process of unfreezing the bank accounts of the concerned transport committees," DoTM Spokesperson Gokarna Prasad Upadhyay, said, adding that it is, however, not under the department’s jurisdiction to unfreeze the blacklisted bank accounts, nor revising the fuel prices.

Nation's first-ever trade survey

The Central Bureau of Statistics (CBS) has conducted a trade survey for the first time.Distributive Trade Survey-2009 is expected to give updated data that can figure out the real contribution of internal trade to the gross domestic production (GDP).
"The result of the Distributive Trade Survey-2009 will give a benchmark of internal trade," said Shankar Lal Shrestha, trade statistics section director at CBS. "However, the result is expected by the end of this fiscal year only.
"The survey took one year to be completed. "We have just completed the field work," Shrestha said adding that though the department had previously conducted Trade Margin Survey -- for the purpose of national accounts that was only enough for the calculation of internal trade's contribution to the GDP.
According to the Trade Margin Survey conducted six years ago in 2003, internal trade's contribution to GDP is 13.72 per cent."The Distributive Trade Survey will have elaborate figures of wholesale and retail trade and employment generated by both as well as capital formation and financial positioning that were not included in the Trade Margin Survey although it was enough for the calculation of GDP," Shrestha added.
The Distributive Trade Survey will also provide quality data with more statistics and provide a new benchmark according to the new scenario as it has a coverage frame of 3,000 out of 60,000 identified trade points.
At a time when the business and economic climate in the country is deteriorating, the survey might also be an eye-opener for the government.
CBS -- established in 1959 under the Statistics Act-2015 BS as the central agency for the collection, consolidation, processing, analysis, publication and dissemination of statistics -- publishes a National Life Style Survey on an annual basis.
The department also conducts crop and livestock survey once a year apart from a CPI every three months. It conducts periodic surveys like Labour Survey every five years. But it has conducted domestic Labour Survey in ten years this year.

Sector wise contribution to GDP
Agriculture and Forestry -- 32.35 per cent
Trade -- 13.72 per cent
Transport, Storage and Communication -- 10.46 per cent
Real Estate and business activities -- 8.33 percent
Manufacturing -- 6.79 per cent
Construction -- 6.42 per cent
Education -- 6.02 per cent
Financial Intermediaries -- 4.79 per cent