According to www.pib.gov.in, Indian Railways has successfully operated India’s first direct commercial container freight train from Kolkata Port to Biratnagar Customs Yard in Nepal — a 40-wagon service carrying canola under the revised India-Nepal Rail Transit Protocol.
Operational Milestone Under Revised Protocol
The train completed its inaugural journey on 28 JUL 2026, marking the operationalization of direct rail freight between the two countries after the signing of the revised Letter of Exchange (LoE) in November 2025. This arrangement eliminates transshipment at the India–Nepal border, enabling end-to-end containerized movement from port to inland customs yard. The service runs along the broad-gauge rail link inaugurated in June 2023 between Jogbani (India) and Biratnagar (Nepal), which was jointly inaugurated by Prime Minister of India Shri Narendra Modi and the then Prime Minister of Nepal.
The revised India-Nepal Rail Transit Protocol is the legal and operational foundation for seamless cross-border freight movement. It replaces earlier arrangements requiring cargo deconsolidation and reloading at border points — a process that previously added up to 48 hours of delay and increased handling costs by an estimated 15–20% per consignment, according to internal Indian Railways logistics assessments cited in related policy briefings.
Logistics Impact and Economic Benefits
The new direct rail freight service is projected to cut average transit time by 30–40% compared to road transport and conventional rail–road intermodal routes. Logistics costs are expected to fall by 12–18% per TEU (twenty-foot equivalent unit), while cargo handling steps decrease from five to two — reducing damage risk and documentation complexity. These improvements directly support India’s National Logistics Policy target of reducing overall logistics costs to 8% of GDP by 2030, down from 13–14% in 2022.
For Nepali importers, the service unlocks faster access to seaborne commodities arriving at Kolkata Port — India’s oldest operating port and a key gateway for landlocked Nepal, which relies on Indian ports for over 60% of its international trade volume. Exporters in eastern India gain a dedicated, scheduled rail corridor to Nepal’s second-largest industrial city, Biratnagar, home to textile, agro-processing, and light manufacturing clusters.
Strategic Infrastructure Alignment
This initiative aligns with broader regional connectivity goals, including the BBIN (Bangladesh, Bhutan, India, Nepal) Motor Vehicles Agreement and the India–Nepal Power Trade Agreement. It also complements the Indian Railways ‘Kisan Rail’ and ‘Vande Bharat Freight’ programs launched in FY 2024–25, both aimed at increasing freight share from 36% to 45% of total rail revenue by 2030. The 40-wagon train uses indigenously manufactured BOXNHL wagons — part of a fleet upgrade program that added 12,000 new freight wagons in FY 2025–26 alone.
From a supply chain practitioner perspective, the service introduces predictable, weekly-scheduled departures — unlike ad hoc road convoys vulnerable to border clearance delays or monsoon-related road closures. Early adopters include three Kolkata-based agri-exporters and two Biratnagar-based edible oil refiners, all reporting reduced inventory holding periods and improved just-in-time planning accuracy.
Source: pib.gov.in
Compiled from international media by the SCI.AI editorial team.
