Major expansion of Nepal-India transit to enable faster deliveries, lower logistics costs

With the commencement of the historic Kolkata-Biratnagar (India-Nepal) rail cargo service, transit costs are set to fall drastically. The service marks a major expansion of Nepal-India transit connectivity and promises faster deliveries, lower logistics costs and improved access for eastern Nepal’s importers.

The first-ever rail cargo service from Kolkata, India, to Biratnagar, Nepal officially began a few days back, marking a major milestone in Nepal’s transit and trade logistics by extending direct rail access beyond Birgunj for the first time.

Under the Nepal-India Transit Treaty, goods imported from third countries are transported through Indian territory to Nepal’s border. In line with the treaty, which allows Nepal to use Indian road, rail and inland waterways for third-country imports and exports, rail cargo transportation from Kolkata to Biratnagar has now begun.

On November 4 last year, the Central Board of Indirect Taxes and Customs (CBIC), under the Department of Revenue, amended the Electronic Cargo Tracking System (ECTS) Regulations, expanding the scope of rail cargo movement from the ports of Kolkata, Haldia and Visakhapatnam.

“The amendment expanded the scope of rail cargo movement from the Indian ports of Kolkata, Haldia and Visakhapatnam, allowing cargo destined for Nepal to be transported by rail up to the Biratnagar Customs,” according to a statement issued by the Consulate General of Nepal in Kolkata.

The new arrangement is expected to significantly reduce logistics costs as transporting goods by rail is cheaper than by road. Trade experts say direct transportation of goods from Visakhapatnam to Biratnagar ICP will cut logistics costs by around 15 to 20%, highlighted a communique.

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