New Trade Routes
India will provide transit facility to Nepal for bulk cargo movement from two additional trading routes. The new routes, Kolkata-Nautanwa (Bhairahawa) and Kolkata-Jogbani (Biratnagar), will save time and logistic costs for traders importing commodities such as chemical fertilizers, cement, iron ore and coal. Currently bulk cargo enters Nepal through the Kolkata-Raxaul (Birgunj) route from where it is transported to other parts of the country. Once the new routes commence, goods can be directly dispatched to customs points at Bhairahawa and Biratnagar from Kolkata.
The logistic cost of ferrying goods will come down after the new routes become functional. It will also decrease the traffic on the Kolkata- Birgunj route, eventually reducing travel time. Altogether, Nepal and India have opened 27 routes for bilateral trade, of which 15 are used for trading with third countries.