Nepal made some improvement in last two years in trade logistics’ efficiency, according to a report.

Nepal scored 2.59 points to be ranked 105th – among the 160 countries – in the 2014 Logistic Performance Index (LPI) produced by the World Bank.

Nepal was ranked 151st in 2012 with 2.04 score compared to 141st position in 2010 with 2.2 score, stated the report.

Logistic Performance Index is the weighted average of the country scores on six key dimensions. The index ranges from 1 to 5 with a higher score representing better performance.

The dimensions that are considered during the surveys to calculate the weighted average of the country for the index are efficiency of the clearance process of the customs, quality of trade and transport related infrastructure and ease of arranging competitively priced shipments, the World Bank said.

Likewise, competence and quality of logistics services, ability to track and trace consignments and timeliness of shipments in reaching destination within the scheduled time are the other factors which are taken into consideration for the survey.

The World Bank has placed Nepal among top 10 low-income performers on the index. Nepal is above Burundui and Bangladesh in the list of top 10 low-income performers, though it has improved its position in last two years.

Among the six variables, Nepal scored the highest in the timeliness indicators with score of 3.06, up from 2.21 in 2012. It is followed by tracking and tracing with 2.72 scores against 1.95 in 2012. But the country did not make huge improvement in the customs front and the indicator received 2.31 scores in 2014 compared to 2.2 scores in 2012.

Similarly, Nepal scored 2.26, 2.64 and 2.50 in infrastructure, international shipments and logistics competence, respectively. The sub-indicators scored 1.87, 1.86 and 2.5 in 2012.
Germany tops the list of 160 countries with 4.12 scores while Somalia is at the bottom with 1.77 scores, the report revealed.

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