Rail service pact review tomorrow

KATHMANDU, FEB 29: 

A comprehensive review meeting of the Railway Service Agreement between Nepal and India will be organised on March 1– 2 in the capital.

“We are hopeful of getting a new stream of rolling stock wagons along with the agreement on the movement of goods from any agreed port of India and Nepal,” said an official at the Nepal Inter Modal Development Board.

Currently, Nepal has only two permits for close wagon and a container.

India and Nepal had signed a Rail Services Agreement (RSA) in May 2004, to extend cargo train services to the Inland Container Depot in Birgunj. 

A Container Corporation of India-led joint venture is operating the Inland Container Depot. 

The RSA was modified in December 2008 to allow oil/liquid traffic in tank wagons and bilateral break-bulk cargo in flat wagons. According to the official, Nepal and India had made a verbal agreement on the RSA in May 2004 but this time both the countries will review the agreement and will put forward their agendas for mutual discussion.

Currently, connectivity between Nepal and India is limited to Kolkata – Haldiya and Birgunj dry port. “This time we are hopeful of getting more connectivity so that we will not have to make agreements for each and every route permit,” said the official. 

The meeting will also discuss the transshipment procedure. “Nepal has already submitted its proposal regarding it and further progress will be made during the meeting,” the official said.

According to the railway service agreement between the two countries, it should have been reviewed every five years. But the agreement made in May 2004 was not reviewed in 2009 due to various circumstances.

The revision of the railway service agreement will be beneficial to build a railway link from Birgunj dry port to Bangladesh through Rohanpur – Singhdabad route. 

During the inter-governmental committee secretarial level meeting between Nepal and India held in New Delhi, both the countries agreed to develop and resolve problems and issues faced by local importers at the Kolkata port.