Nepal, India exchange LoE to expand rail-based freight transit routes

KATHMANDU: Nepal and India have signed an agreement amending the Protocol to the Treaty of Transit, paving the way for expanded rail-based freight movement between the two countries.

The exchange of Letters of Exchange (LoE) took place during a bilateral meeting between India’s Commerce and Industry Minister Piyush Goyal and Nepal’s Minister for Industry, Commerce and Supplies Anil Kumar Sinha in New Delhi on Thursday

The revised protocol will facilitate the movement of rail freight between Jogbani (India) and Biratnagar (Nepal), including bulk cargo under an expanded definition.

The liberalization also extends to major transit corridors like Kolkata–Jogbani, Kolkata–Nautanwa (Sunauli), and Visakhapatnam–Nautanwa (Sunauli)—thereby enhancing multimodal trade connectivity and easing Nepal’s access to third-country trade routes.

The new LoE enables direct rail connectivity along the Jogbani–Biratnagar rail link for both containerized and bulk cargo, allowing seamless transport from the Indian ports of Kolkata and Visakhapatnam to the Nepal Customs Yard in Morang.

The 18-km rail link, constructed with Indian grant assistance, was jointly inaugurated by the Prime Ministers of the two countries in June 2023.

During the meeting, both ministers also reviewed ongoing efforts to strengthen cross-border connectivity, including the development of Integrated Check Posts (ICPs) and related infrastructure to facilitate trade and transit.