It goes without saying that Nepal and India have enjoyed cordial relations at political, economic and cultural levels since time immemorial. Nepal not only imports a lot of consumer and other goods from the southern neighbour but also utilises some of the Indian ports for international trade. With better road, railway and air connectivity and necessary institutional development, the trade relations between the two nations have been enhanced further. Inked in 2004, the Railway Services Agreement had given a monopoly to the Container Corporation of India (CONCOR) for the transportation of containers and other cargo from the Indian ports of Kolkata, Haldiya and Visakhapatnam. As suggested by the Nepali and Indian business communities, the agreement was revised by the two countries in July 2021. Transportation of goods between the two friendly nations has now become smoother with the revision of the agreement. It has paved the way for the operation of the Indian private sector railways up to the border.

According to a news report carried by this daily, a cargo train of the Indian private railway company -- Hind Terminal -- arrived in Nepal for the first time in 17 years after the operation of Nepal-India railway service. Carrying containers from Haldiya Port in India, the first Indian cargo train turned up at the Sirsiya Dry Port in Birgunj, breaking the monopoly of CONCOR. As per the Nepal Intermodal Transport Development Committee, the train of the Indian private railway company had left Haldiya Port carrying 90 containers of food items on Monday and arrived at the Birgunj dry port at 10 am on Wednesday. Nepal’s business community has welcomed this development. They will now find it easier to import and export goods in a more efficient manner. The private trains transport cargo at a cheaper fare as compared to the one charged by the CONCOR.

There is no doubt that the arrival of private companies has boosted the level of confidence of Nepali importers. This has created an environment for them to choose the railway transport services based on fares as well as service quality. They had been calling for amendment to the Railway Service Agreement because they were forced to pay higher consignment fares due to the CONCOR’s monopoly. At present, as many as 15 private companies are operating railway transportation services in India. Three more Indian railway companies have shown interest in shipping to Nepal. According to the Nepal Intermodal Transport Development Committee, Pristine Logistics Infra Project, the main partner of the Indian Pristine Valley which operates the dry port of Birgunj, and JM Baxi Group are preparing to transport cargo and containers to Birgunj by rail.

Constructed in Birgunj in 2000 at a cost of Rs. 820 million with loan assistance from the World Bank (WB), the Sirsiya Dry Port is close to the border with India. It is connected to Raxaul railway junction in India across the border. This is the only dry port in Nepal connected by railway from Kolkata via Raxaul. The Inland Clearance Depot (ICD) at Sirsiya is also the only terminal in the country linked by railway to India. The involvement of the private cargo trains in transporting goods and containers may now help bring down prices of goods in Nepal.