Can Nepal Realise Ocean Dream?

It was in 2073 that KP Sharma Oli, Prime Minister at that time, also declared that Nepali ships would be sailing the Pacific Ocean in no time. He also made it a slogan during the 2074 elections. At the time, the people believed him, dreaming of the Nepali-flagged ships sailing the Pacific Ocean. They also saw a visionary leader in the Prime Minister. To turn his ocean dream into a reality, the Nepal Shipping Office was also set up. The shipping office was inaugurated by the Prime Minister on Falgun 2, 2075. The objectives of the office are to manage and organise cruising ships across the Indian and Pacific Oceans. It may be noted that the office was established under the Ministry of Physical Infrastructure and Transportation through a cabinet decision. 

The shipping office studied the old laws regarding shipping, ocean rules and other relevant rules so as to come up with relevant laws. The shipping office also prepared a proposal with 27 important points and submitted it to the Ministry of Physical Infrastructure and Transportation. The points included, inter alia, rules and regulations applicable to boats and steamers, technical know-how, physical infrastructure, ships of different capacities and ship registration. Two foreign companies from abroad showed interest in operating Nepali ships. Even some Nepali companies showed interest in operating and managing Nepali ships. However, Prime Minister Oli’s ocean dream has remained a dream. Is it not possible to convert the dream into a reality? After all, the idea is not bad at all. The materialisation of the dream will make Nepal a prosperous country. It will also contribute to fostering the tourism business.

Water transport 

Prime Minister Oli tried to convince the people that his government was serious about launching Nepali ships in the Indian and Pacific Oceans. He was so overconfident that he called upon the people to buy tickets for cruising in Nepali ships. Then-Finance Minister Dr Yubaraj Khatiwada, while presenting the financial bill for the fiscal year 2076/77, declared that work was in progress to make water transport a reality both inside and outside Nepal and that necessary physical infrastructure would be built soon to utilise rivers like the Koshi and the Narayani for domestic water transport. As the dream project could not move ahead, Prime Minister Oli had to face criticisms from quarters. 

Nepal is a landlocked country but can technically operate its ships in the oceans. The United Nations Convention on the Law of the Sea (UNCLOS) allows landlocked countries to enjoy freedom of transit and transport through the territories of transit countries by accessing the international seas. The country has signed transit transport agreements (TTAs) with both India and China. The TTAs allow the country to have access to the seaports of these countries. As per the TTAs, the country can transport goods through their territories. The country has been using India’s ports for its trade and transit. However, the principles of freedom of transit allow the country to access the Pacific Ocean as well. 

Nepal, as a landlocked country, has the right to use international waters through a third country for economic purposes only. The Law of the Sea conferences held in the 1980s have guaranteed the country’s right to use the exclusive economic zone all over the world. According to Article 69 of the UNCLOS, the country could use the seas as a trading route and the exclusive economic zone of sea-facing countries, besides allowing the country to use the docking facilities of the nearest sea-facing country to operate its fleets. 

To operate ships in international waters, Nepal needs to have comprehensive sea transit treaties in place with coastal countries. It may be noted that the UNCLOS states that the right to use another country’s coasts will solely depend on the will of the hosting country. There are high risks and insecurity on the high seas. There are also global and environmental problems in the high seas, ranging from territorial acquisitions to resource drilling. The country needs to convince its host countries that its maritime activities will not pose any threat to them in terms of deteriorating marine ecosystems, sovereignty or maritime crimes. 

Operating ships in the oceans is no picnic. Nepal needs to develop institutional capacity to materialise its ocean dream. The country also needs to think about costs. As a country already cash-strapped, even to manage daily administrative affairs, it may be difficult to manage funds. Many landlocked countries are running their ships in international waters. Several landlocked countries such as Switzerland, Luxembourg and Ethiopia are operating ships in international waters. Switzerland, despite not having access to the seas, has become the world’s largest container ship nation. The European country relies on the seaports of other countries to operate its sea business. Likewise, Ethiopia uses Djibouti’s port for maritime activities.  

Political will

Nepal can collaborate with SAARC countries to operate ships in the Indian Ocean. For this, it has to formulate a robust political and diplomatic strategy. India, Bangladesh, the Maldives, Pakistan and Sri Lanka have coastlines. Of them, the Maldivian and Pakistani coastlines are geographically and economically inaccessible, whereas the coastlines of Sri Lanka are a long way from the country. 

To materialise the ocean dream, a regional treaty among SAARC countries is forthcoming. Such a treaty will facilitate the operation of ships in the Indian Ocean by landlocked SAARC countries. International financial institutions may also fund Nepal to complete its shipping project. After all, Prime Minister Oli’s ocean dream is not unviable; it can be made a reality. What is needed is the political will and diplomatic acumen.  

(Maharjan has been regularly writing on contemporary issues for this daily since 2000.)