A cargo rail service has been extended to Biratnagar, reducing transportation costs and time for industries and importers in eastern Nepal.
The first cargo rail from Kolkata port in India arrived at the Nepal Customs Yard in Biratnagar on Monday, marking the first time that rail cargo service from a third country has been extended to Biratnagar.
The rail service is expected to reduce transportation costs and time for industries and importers in eastern Nepal. The cargo rail from Kolkata carried 40 containers of raw materials imported from a third country for Swastik Oil Industries in Nepal.
Rail Cargo Service Reduces Transportation Costs and Time
The rail cargo service is a significant development for industries and importers in eastern Nepal, who have been facing high transportation costs and long delays.
According to Nandu Rathi, president of the Morang Industry Organization, the extension of the rail cargo service to Biratnagar will provide a huge relief to industries and importers in eastern Nepal.
Rail transportation is safer, more reliable, and cheaper than road transportation, according to Suyash Pyakurel, an industrialist. He added that the rail cargo service will reduce transportation costs significantly.
The cargo rail service will also reduce the time it takes to transport goods from Kolkata to Biratnagar, which is currently around 24 hours. This will also reduce the cost of demurrage charges, container detention charges, and other additional costs associated with road transportation.
Nepal-India Transportation Agreement
The Nepal-India transportation agreement allows for the use of road, rail, and waterways for import and export trade with third countries.
Under this agreement, the Indian government has amended the electronic cargo tracking system rules to allow for rail cargo transportation from Kolkata, Haldia, and Visakhapatnam ports to Biratnagar customs yard.
The Nepalese embassy in Kolkata has played a significant role in facilitating the rail cargo service, which is expected to reduce transportation costs and increase the competitiveness of Nepalese industries.
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