July 11: Four railway service providers of India are looking forward to transport cargo to Nepal, following the amendment of the Nepal-India Railway Service Agreement. Competition among the Indian companies is likely to increase as the agreement opens the door for Indian private carriers to transport cargo to Nepal. So far, the Indian Container Corporation Limited (Konkar) has been providing transportation services from the Indian seaports of Kolkata, Haldiya, and Visakhapatnam to Nepal. Until now, Konkar, a subsidiary of Indian Railways, had a monopoly on transportation through railway. Now, the other three companies are ready to provide services immediately.

Pristine Logistics InfraProjects, which is currently partnering in the operation of the Birgunj Dry Port, has started preparations for the operation of the railway service, said a senior official of the company.

The official also claimed that JN Buxi Group, which operates ports and railways in India, and Hind Terminal Pvt are interested in the cargo shipment service.   Pristine Logistics holds the contract to operate the port for five years in partnership with the Valley Dryport. Pristine had been interested in railway services in Nepal. Pristine has 30 rail racks. At present, 15 private companies are providing railway transportation services in India. The amendment has opened the way for all those companies to opt for the service.

The Federation of Nepalese Chambers of Commerce and Industry of Province 2 Transport and Transit Committee expressed that Nepal's transit can benefit if competition increases after private companies operate their service. Coordinator Ashok Temani is dissatisfied with the fact that the amendment does not include the issue of transportation by private railway service providers of Nepal. Even though the amendment has made arrangements for Indian private companies to transport goods to Nepal, the agreement is silent on private railway service providers of Nepal. The agreement has been amended so that trains and wagons owned by Nepal Railway Company can provide services. Nepali importers and exporters had demanded an amendment a decade ago. 

Now even private logistics companies in the country are willing and can provide services. It's the short-sightedness of the government officials that the agreement did not pave the way for the entry of private companies, he informed.