In a groundbreaking development for Nepal’s trade and logistics sector, Allcargo-Transnepal Joint Venture recently secured the coveted LOI for a five-year contract to manage the Choubar Container Freight Station (CFS) in Kathmandu, Nepal. With this, Allcargo-Transnepal JV now manages three ICD-ICPs (Inland Container Depot/Integrated Check Post) in Nepal.
This remarkable achievement signals a new era for Nepal’s economic growth and its import-export potential. With a focus on fiscal discipline, the country has maintained a stable inflation rate. Efforts to improve infrastructure and connectivity are attracting foreign direct investment. Despite challenges, like vulnerability to natural disasters, Nepal’s economy is on an upward trajectory. These indicators reflect a nation poised for greater economic prosperity, positioning itself as an attractive destination for investors and a source of hope for its people.
Partnering infrastructure development and efficiency
The Choubar CFS, situated on a sprawling 27-acre site, stands as the first of its kind in Kathmandu, Nepal. This facility is meticulously designed, with clear segregation for both EXIM (Export-Import) and domestic operations, boasting four top-tier ‘A’ grade warehouses and ample parking space. It elevates Nepal’s logistics infrastructure and promotes efficient trade practices.
This milestone was achieved through a strategic partnership with TRS Lift & Shift, who joined forces with TransNepal to form a 50% Joint Venture. This collaboration was instrumental in helping to secure the bid, marking it as a significant win for all stakeholders.
Boosting business in regions with great potential
Kathmandu is a key gateway for Nepal’s trade and commerce, with approximately 30% of Nepal’s EXIM volume, comprising over 2500 TEUs passing through the city every month. These goods arrive through ports such as Kolkata and Vizag, eventually making their way to the trade hub of Birgunj. Moreover, Kathmandu plays a pivotal role in receiving bilateral trade volume from India, and it stands as the highest consumption area within Nepal.
Kathmandu has also demonstrated a strong demand for ‘A’ grade warehousing for consumer goods.
The Choubar CFS has a comprehensive range of services, which can cater to the current needs, as well as adapt to the evolving demands of Nepal’s economic landscape. This aligns well with Choubar CFS’s vision to help businesses manage their inventories and distribution more efficiently. With services extending to include even Less-than-Container Load (LCL) cargo, even smaller shipments receive the same level of professionalism and care.
Converting a portion of the warehouse space into temperature-controlled facilities is also on the cards, to serve the growing pharmaceutical sector’s supply chain management needs. With the necessary permissions from customs authorities, the facility will also offer bonded warehousing services, for the burgeoning white goods market.
For the car import business too, Kathmandu is a pivotal location for the clearance and delivery of cars imported from India and other third countries. The Choubar CFS aims to be at the forefront of enabling excellence for this industry.
Additionally, recognizing the pressing need for parking space in Kathmandu, the Choubar CFS will offer long-term leasing options to Kathmandu Municipal Corporation, providing a solution to the ever-increasing demand for parking facilities.
The Choubar CFS venture represents not only a significant leap in Nepal’s logistics and trade capabilities but also Allcargo-Transnepal JV’s unwavering commitment to the nation’s economic development. It is a catalyst for Nepal’s journey towards increased economic prosperity and global trade engagement, and is well-geared to make significant contributions to the nation’s economic landscape in the years to come.