Friday, June 7, 2019

Concor to lose monopoly on India-Nepal cargo movement

Container Corporation of India (Concor) is going to lose its monopoly of being the only player to move container trains between India and Nepal after the revision of India-Nepal Rail Service Agreement (RSA).
The recent revision of RSA has allowed the private players to move the containers between India and Nepal that has been monopoly of Concor since last fifteen years.
Kathmandu-New Delhi agreed to allow private container train operators – to carry goods including food, clothes, building material, cement, furniture, wood, crockery and cutlery to Nepal – after the revision of the RSA on June 5 and 6 talks in New Delhi.
In 2004, when the RSA was finalised, Concor was the only container train operator but in 2006-07, Indian Railways opened up the market, allowing other operators to run container trains, and giving Nepal also the option. Many a companies – including those backed by Adani Group, Port of Singapore Authority and Dubai Port World – have shown interest on ferrying to and fro Nepal.
Nepal traders and India’s Association of Container Train Operators (ACTO) both had long sought the opening up of the route for all operators but the RSA revision has been a long due.
The entry of new players will not only introduce competition for Concor but also force it to lower freight charges, making the imports cheaper to Nepal, the traders said, adding that Indian Railways has but earlier resisted moves to open up the route to private Indian container train operators.
The monthly traffic between India and Nepal comprises 13 to 14 container trains each way.

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