The Hindu Business Line : Direct railway movement of bilateral traffic to Nepal soon

COME January and the first goods train carrying Indian exports to Nepal will cross over the India-Nepal border in Raxaul (Bihar) and enter the Nepalese territory to reach the Birgunge inland container depot (ICD), provided everything takes place as planned at both sides of the border.

At a high-level meeting held recently, senior officials of the governments of India and Nepal discussed threadbare on how to start the direct railway movement of bilateral traffic at the earliest.

It was felt that such movement could take place as soon as the Customs procedures in both the countries were in place. The infrastructure is already there.

The Indian side was represented by officials from the Ministries of Railways, External Affairs and Finance, while the Nepalese delegation was led by the Joint Secretary in the Ministry of Commerce, Industry and Civil Supplies of that country.

For the past few months, Container Corporation of India (Concor) has been moving containers from the Kolkata port (including Haldia) right up to Birgunage ICD located within the Nepalese territory.

However, as per the agreement signed between the two countries in this regard, Concor handles only the third country trade, not bilateral trade.

Accordingly, all containerised imports to Nepal from any country other than India, routed through Kolkata port are to be transported by Concor right up to Birgunge ICD.

Similarly, all Nepalese exports (through Birgunge ICD) to any country other than India and routed through Kolkata port too are to be handled by Concor.

Nepal being a land-locked country uses the facilities of Kolkata port to route its imports and exports, in fact more imports than exports.

Ever since Concor's service was linked to Birgunge ICD in July this year, only one rake of containerised exports has been handled by Concor so far and that too in October. However, the throughput of imports has been steadily rising. Thus, in July the throughput was 141 TEUs, which increased to 305 TEUs in August, further to 345 TEUs in September and 532 TEUs in October. In addition, 99 TEUs of exports, for the first time.

Right now a portion of the non-containerised bilateral trade moves by train but only up to Raxaul, the last Indian railway station on the India-Nepal border.

The volume of such trade is estimated at equivalent of 15 rakes a month. Once the trains reach Raxaul, consignments are unloaded and then taken by road into the Nepalese territory. Indian goods trains carrying bilateral traffic are not allowed to enter into Nepal.

No wonder, the large part of the bilateral trade is transported by road, which is much costlier than the rail movement. Once the proposed railway arrangement is in force, exporters from any part of India to Nepal will be able to move consignments by rail straight into the Nepalese territory.

It might be noted that the Indian Railways also handles some quantities of third country non-containerised trade and the volume of such trade is estimated at 10 rakes a month.

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Direct railway movement of bilateral traffic to Nepal soon