Kathmandu, July 21: Nepal has launched its first rail cargo service from Kolkata Port to Biratnagar – capital city of Koshi province, marking the start of direct railway transportation of third-country imports to eastern Nepal through India under the Nepal-India Transit Treaty.

The service commenced on Thursday after India expanded the scope of its Electronic Cargo Tracking System (ECTS) regulations to allow cargo trains from Kolkata, Haldia and Visakhapatnam ports to reach Biratnagar Customs via Jogbani, the Consulate General of Nepal in Kolkata informed in a statement on Friday.

Until now, Birgunj was the only customs point in Nepal connected to Indian ports by rail for third-country cargo. The extension of rail services to Biratnagar is expected to facilitate regular movement of both containerised and bulk cargo to eastern Nepal and support trade by improving transport efficiency and reducing overall transit costs.

"The expansion was introduced through India's Central Board of Indirect Taxes and Customs (CBIC) Notification No. 73/2025-Customs issued on 4 November 2025, which amended the Electronic Cargo Tracking System Regulations, 2019," read the statement. The amendment permits third-country imports destined for Nepal to be transported by rail directly to Biratnagar Customs, in addition to the existing rail link to Birgunj.

Following the amendment, Kolkata Customs issued Public Notice on 26 February 2026, setting out the procedures for transporting cargo by rail from Kolkata and Haldia ports to the Nepal Customs Yard at Biratnagar through the Indian Customs Yard at Jogbani.

According to the Consulate General, the inaugural consignment departed from Kolkata Port on a Container Corporation of India (CONCOR) freight train. It consists of 40 high-capacity 40-foot containers operated by Maersk Line carrying Canola Grain – Farmer Dressed, imported for Swastik Oil Industries in Nepal. 

All containers are equipped with the Electronic Cargo Tracking System, informed the Consulate General.

The cargo will travel through the Jogbani Integrated Customs Check Post (ICP) before entering Biratnagar Customs Yard.

Officials from the Consulate General of Nepal in Kolkata, Kolkata Customs, Kolkata Port and the Container Corporation of India jointly flagged off the first train.

Once fully operational, the service will be capable of transporting up to 45 forty-foot containers in a single train directly to Biratnagar. Acting president of the Federation of Nepalese Chambers of Commerce and Industry Surkrishna Vaidya said that it will help in Nepal's international trade with the reduction of cost and time. 

"Entrepreneurs have long been demanding with the government of Nepal and India to launch such service in order to facilitate both the importers and exporters in Nepal," he said. 

The new rail corridor is expected to reduce logistics costs for Nepali importers by lowering demurrage charges, container detention fees and road transport expenses. Rail transport is also expected to shorten transit time to around 24 hours from Kolkata to Biratnagar while providing an alternative to road freight.