Nepal launches first direct rail cargo service from Kolkata to Biratnagar

Kathmandu: Nepal and India marked a major milestone in cross-border trade on Friday with the launch of the first-ever rail cargo service between Kolkata and Biratnagar, creating a new logistics corridor for imports from third countries under the Nepal–India Transit Treaty.

The inaugural freight train departed from Kolkata Port carrying 40 high-capacity containers to the Biratnagar Customs Yard in eastern Nepal, the Consulate General of Nepal in Kolkata said.

The service was jointly flagged off by Nepal's Consul General in Kolkata, Jhakka Prasad Acharya, along with officials from Kolkata Customs, Kolkata Port and the Container Corporation of India Limited (CONCOR).

Until now, Birgunj, located near the Indian border town of Raxaul, was Nepal's only rail-linked customs point for containerised imports arriving from seaports. The new Biratnagar route is expected to support regular transportation of both containerised and bulk cargo, improving trade access for eastern Nepal.

The first shipment consists of 40 forty-foot containers operated by Maersk Line, carrying canola grain imported from Australia for Nepal's Swastik Oil Industries. The cargo is being transported on a CONCOR freight train, with all containers equipped with the Electronic Cargo Tracking System (ECTS) for secure monitoring throughout the journey.

The rail service travels through the Jogbani Integrated Customs Yard on the India-Nepal border before reaching Biratnagar. Once fully operational, a single freight train will be able to carry up to 45 forty-foot containers directly to the Biratnagar Customs Yard.

In a post on X, CONCOR said the new logistics solution has been made possible through the coordinated efforts of Indian Railways, Syama Prasad Mookerjee Port, Customs authorities, Maersk Line, Inland World Logistics and Transecure's Electronic Cargo Tracking System. The company described the service as a significant step towards faster, more efficient and cost-effective trade while strengthening regional connectivity and supply chain resilience.

According to the Consulate General, rail transportation offers a safer, faster and more economical alternative to road transport, with cargo expected to reach Biratnagar in nearly 24 hours.

The new rail link is also expected to reduce logistics costs for Nepali importers by cutting port demurrage charges, container detention fees and road transportation expenses, thereby enhancing the competitiveness of Nepal's industries.

The service has been enabled under the Nepal–India Transit Treaty, which allows Nepal to move imports and exports to third countries through India's road, rail and inland waterway networks. To facilitate the new corridor, India's Central Board of Indirect Taxes and Customs amended the Electronic Cargo Tracking System (ECTS) Regulations in November 2025, extending rail cargo movement from the ports of Kolkata, Haldia and Visakhapatnam to the Biratnagar Customs Office.

Following the amendment, Kolkata Customs issued procedural guidelines in February 2026, paving the way for cargo movement by rail from Kolkata and Haldia to Biratnagar via the Jogbani Customs Yard, alongside the existing rail route to Birgunj.

With inputs from IANS