Rail Relief: Lower costs and smoother trade for Nepal

The Indian government has simplified its rail freight corridor access for Biratnagar and Bhairahawa, giving Nepali exporters and importers an opportunity to reduce freight transportation charges and improve the trade timeline. Nepal will now be able to transport all types of bulk goods over the rail link of Jogbani and Biratnagar, and they will also get similar access over the Nautanwa and Sunauli route for transporting goods from Bhairahawa. The new understanding is significant for Nepal, as earlier it was allowed only to transport limited types of bulk goods by Biratnagar, which may sometimes compel businessmen to go for longer routes as well as longer transportation lengths. With the new agreement in place, Nepali businessmen importing or exporting goods through India can gain faster and less costly transportation facilities from both the ports of Kolkata and Visakhapatnam. The transportation system in Nepal is always accompanied by complex layers that have increased transportation costs severalfold. The seaports are distant, and land transportation within India is longer. Nepali exporters and importers have been forced to use trucks to ferry goods to railway stations situated far from Bhairahawa, Biratnagar, Birgunj and other cities. The transportation of goods through roads is still slow, costly, and full of uncertainties at border control posts. Trains will reduce fuel costs, damages, and the process of continual reloading. Nepal’s businessmen will now have a route through India’s wide rail networks to Biratnagar and Bhairahawa.