Kathmandu: Two months after the Nepal-India Rail Service Agreement was amended, a private sector freight train arrived India to Nepal Wednesday for the first time. This was made possible after an amendment to the Rail Services Agreement between Nepal and India on 9 July, which broke the monopoly of Indian containers after a gap of 17 years.
The goods train reached Nepal’s border town of Birganj on Wednesday morning. According to the Nepal Intermodal Transport Development Committee, a rake cargo train of Hind Terminal Pvt Ltd reached the dry port at Birgunj at 10:00 am.
The amendment to the 17-year-old Rail Services Agreement has removed the hurdles Nepal has been facing for a long time, especially in the import and export of goods through Indian Railways freight services.
As per the revised text of the Letter of Exchange, all authorized private container train operators (Indian as well as Nepalese) will be able to use the Indian Railways network to transport goods for import or export to Nepal, thereby ending the monopoly of the Government of India. Will go -owned Container Corporation of India (CONCOR).
The agreement allows India’s railway freight services to bring in and pick up goods from border points other than Raxaul/Birganj.
The executive director of the committee, Ashish Gajurel, said that the train reached the dry port on Wednesday carrying 90 containers of food products from Haldia. Gajrail shared that Hind Terminal Pvt Ltd will import cargo twice a week while other four companies have also shown their interest in cargo transportation.
The number of cargo companies for transportation can be increased as cargo trains managed by the private sector are allowed for this.
The Railway Services Agreement signed between Nepal and India in 2004 established the monopoly of the Container Corporation of India, a sister organization of the Indian Railways.
As Nepal and India plan to expand more cross-border railway networks, experts and officials said the agreement has opened up new avenues of cooperation in Nepal-India trade and transit sectors.
With this agreement, Indian private operators will be allowed to allow Nepal-bound cargo to Visakhapatnam and Kolkata ports as well as Nepal to use Indian sea ports close to major customs points in western and far-western Nepal for third country trade. Givers can transport from more ports. Transit Treaty between Nepal and India. Presently, rail freight can be transported only on the Kolkata-Raxaul/Birganj route.
Another major advantage of the Revised Railway Services Agreement is that all types of wagons that can carry goods within India on the Indian Railway network can also carry goods to and from Nepal. Earlier this facility was limited to only certain types of wagons.
According to officials, liberalization will reduce transportation costs especially for automobiles that are transported on special wagons that were not listed in the 2004 Railway Service Agreement, as they did not exist then.
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