India Beats China to Nepal's Rail Gateway as First Freight Train Reaches Biratnagar

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By TRH World Desk

The first direct commercial container freight train from Kolkata Port reaches Biratnagar under the revised India-Nepal Rail Transit Protocol, strengthening bilateral trade and undercutting China’s long-stalled rail ambitions in Nepal.

New Delhi, July 28, 2026 — On geopolitical chessboard, India seems to have checkmated China by first taking a train to Nepal. The first Indian train on Tuesday reached Biratnagar in Nepal, carrying goods from the Kolkata Port.

For decades, China has been pushing Nepal to approve rail connectivity projects. The political instability in Nepal stalled the push of Beijing to take rail projects into Nepal.

“Indian Railways has achieved a major milestone in strengthening India-Nepal freight connectivity with the successful operation of the first-ever direct commercial container freight train from Kolkata Port to Biratnagar Customs Yard, Nepal,” said India’s Ministry of Railways in a media statement on Tuesday.

It further stated that “the train, comprising 40 wagons carrying a consignment of canola, completed its journey under the revised India-Nepal Rail Transit Protocol, marking a new chapter in rail-based cross-border freight movement.”

The successful operation enables direct rail movement of containerised cargo from Kolkata Port to Biratnagar without transshipment at the border. “The new arrangement is expected to substantially reduce transit time, logistics costs and cargo handling while improving the efficiency, reliability and competitiveness of cross-border trade between the two neighbouring countries,” added the Ministry of Railways.

China had for several years been holding negotiations with Nepal for the feasibility study of Kerung-Kathmandu rail link. But the project remained stuck as Beijing wanted Kathmandu to fund the project under the Belt and Road Initiative (BRI) loan. Nepal is among several nations in the world which reels under heavy Chinese debt due to BRI projects.

“The milestone has been made possible through the implementation of the revised India-Nepal Rail Transit Protocol, which facilitates seamless end-to-end rail transportation of freight between the two countries,” said the Ministry of Railways in its statement.

The achievement builds upon the broad-gauge rail link between Jogbani (India) and Biratnagar (Nepal), inaugurated in June 2023 by Prime Minister of India Narendra Modi and the then Prime Minister of Nepal. Following the signing of the revised Letter of Exchange (LoE) in November 2025, direct commercial rail movement to Biratnagar has now become operational, opening new opportunities for bilateral trade and economic cooperation.

“The direct freight service is expected to provide a significant boost to the movement of import and export cargo by offering a faster, more economical and environmentally sustainable mode of transportation. By reducing multiple handling points and improving supply chain efficiency, the initiative will benefit exporters, importers, logistics operators and industries engaged in cross-border trade,” added the Railways.