Inauguration of Historic Rail Cargo Service Linking Kolkata and Biratnagar

New Delhi, India Jul 17, 2026 ALN: A first-ever rail cargo service between Kolkata and Biratnagar, an eastern city in Nepal, officially began on Friday, marking a major milestone in facilitating imports from third countries under the Nepal–India Transit Treaty. The inaugural freight train departed from Kolkata Port on Friday carrying 40 high-capacity containers bound for the Biratnagar Customs Yard, the Consulate General of Nepal in Kolkata said in a press statement.

This new rail service is not just a logistical innovation; it represents a significant advancement in the economic relationship between Nepal and India. Historically, trade between these two countries has relied heavily on road transport, which has often been slower and more costly. The introduction of rail cargo service is poised to change this dynamic, providing a more efficient alternative that could enhance trade flows and economic interactions.

The inaugural 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, a city adjoining the Indian town of Raxaul, had been the country’s only rail-linked customs point for containerized imports from seaports. The establishment of a second rail link to Biratnagar not only diversifies the routes available for trade but also alleviates congestion at the Birgunj customs point.

The launch of the Biratnagar service is expected to enable regular commercial transportation of both containerized and bulk cargo through eastern Nepal. “The first shipment comprises 40 forty-foot containers operated by Maersk Line, carrying Canola grain – farmer dressed, a raw material imported from a third country for Nepal’s Swastik Oil Industries,” the Consulate General said. This shipment is indicative of the types of goods that are likely to flow through this new route, which could further encourage businesses in Nepal to engage in international trade.

The inaugural shipment was transported on a CONCOR freight train, and all containers have been fitted with the Electronic Cargo Tracking System (ECTS). This system enhances the security and tracking of cargo, providing stakeholders with real-time updates on the status of their shipments. With the full operation of the rail service, which passes through the Jogbani Integrated Customs Yard on the Nepal–India border before reaching Biratnagar, up to 45 forty-foot cargo containers can now be transported directly to Biratnagar in a single train, according to the Consulate General. This capacity increase is significant, as it allows for greater volumes of goods to be transported in a single trip, thereby reducing the frequency of shipments required.

“The inaugural movement comprises 40×40' containers carrying farmer-dressed bulk canola grain from Fremantle, Australia, moving under the aegis of Maersk Line. This seamless logistics solution, enabled through the collaborative efforts of Indian Railways, Syama Prasad Mookerjee Port, Customs, Maersk Line, Inland World Logistics, and Transecure (ECTS), marks a significant step towards faster, more efficient, and cost-effective trade. This service opens a new chapter in India–Nepal connectivity, strengthening regional trade and supply chain resilience,” CONCOR’s Area-IV (East) posted on X. This collaboration among various stakeholders highlights the importance of inter-agency cooperation in facilitating trade and underscores the potential for future partnerships in enhancing logistics and supply chain management in the region.

The Consulate General said rail transport offers a safer, more reliable, and lower-cost alternative to road transport, with cargo expected to reach Biratnagar in around 24 hours. The new arrangement is expected to significantly reduce logistics costs by lowering port demurrage charges, container detention charges, and additional road transportation costs incurred by Nepali importers. This reduction in costs is particularly crucial for small and medium-sized enterprises (SMEs) in Nepal, which often struggle with high logistics expenses that can inhibit their competitiveness in both domestic and international markets.

Furthermore, the rail service is anticipated to facilitate trade and strengthen the competitiveness of Nepali industries. By providing a more efficient means of transporting goods, businesses in Nepal may find it easier to import raw materials and export finished products, ultimately contributing to economic growth and job creation within the country. Enhanced trade connectivity can lead to increased investment opportunities and foster a more robust industrial base in Nepal.

Under the Nepal–India Transit Treaty, which allows Nepal to transport imports and exports to and from third countries through Indian roads, railways, and inland waterways, the Central Board of Indirect Taxes and Customs (CBIC) of the Government of India amended the Electronic Cargo Tracking System (ECTS) Regulations, 2019, on November 4, 2025. This amendment is a crucial step in modernizing the logistics framework governing trade between Nepal and India, ensuring that cargo transport is secure and efficient.

The amendment expanded the scope of rail cargo transportation from the Indian ports of Kolkata, Haldia, and Visakhapatnam to the Biratnagar Customs Office. “Following sustained efforts by the Consulate General of Nepal to implement this decision, Kolkata Customs issued a public notice on Feb. 26, 2026, establishing the procedural framework for transporting cargo by rail from Kolkata and Haldia to the Nepal Customs Yard in Biratnagar via the Jogbani Customs Yard in India, in addition to the existing rail route to Birgunj,” the Consulate General said. This procedural clarity is essential for businesses to navigate the logistics of international trade, as it outlines the steps necessary for compliance with customs regulations and facilitates smoother operations for importers and exporters alike.

In conclusion, the inauguration of the rail cargo service between Kolkata and Biratnagar stands as a landmark achievement in the ongoing efforts to enhance trade and connectivity between Nepal and India. As both countries continue to explore avenues for economic collaboration, the successful implementation of this service could serve as a model for future initiatives aimed at improving trade infrastructure in the region. The implications of this development extend beyond mere logistics; they encompass broader economic benefits that could transform the trade landscape in South Asia, fostering greater regional integration and cooperation.