Lack of clarity between Nepal Railways and Nepal Intermodal Transport Development Board over which of the two entities will oversee the Bathnaha-Biratnagar freight train has stalled the operation of the freight service, which was launched amid fanfare two weeks ago.

As Nepal Railways is under the Department of Railways and the Nepal Intermodal Transport Development Board under the Ministry of Industry, Commerce and Supplies, there are no guidelines defining their particular roles regarding the management of the Bathnaha-Biratnagar freight train service.

A train had arrived from Bathnaha, an Indian city seven kilometres from the border, to Biratnagar customs yard on June 1, with a consignment of industrial raw materials. The train returned to India the next day and hasn’t made a trip to Nepal since then.

According to Rakesh Surana, president of the Chamber of Industries, Morang, the local traders and industrialists were excited by the arrival of the freight train. “But the excitement has been short-lived,” said Surana.

Entrepreneurs in eastern Nepal were hopeful that the operation of the cargo train would significantly reduce the cost of transporting raw materials compared to container trucks.

Prime Minister Pushpa Kamal Dahal and his Indian counterpart Narendra Modi jointly inaugurated the service during Dahal’s visit to India on June 1.

The freight train service was expected to be a game-changer for around 500 industries operating in the Sunsari-Morang industrial corridor.

Gyanendra Dhakal, chief of Biratnagar Customs, said the train has not resumed its operations even though there are no complexities from the customs side.

However, officials say lack of coordination between the two government bodies has delayed the resumption of freight train services.

Niranjan Kumar Jha, director of the Nepal Railways, said there are two separate government bodies responsible for the management of the railway in Nepal. “But there are no guidelines on who is responsible for the management of the freight train services.”

The Indian Railway Company has handed over the railway track and the warehouse to Nepal Railways, said Jha.

“The government, however, hasn’t clearly instructed whether the railway company or the intermodal company will look after its management. Therefore, the service has temporarily stopped.”

The government is yet to formulate operating guidelines for freight railway services.

“It might take around a month for the government to come up with new guidelines. We expect that the service will resume soon,” added Jha.

The construction of the 18-kilometre broad gauge railway track from Bathnaha to Katahari started 12 years ago with the aid of the Indian government.

Ircon International, an Indian government undertaking under the Ministry of Railways, started the construction in 2011 with an investment of INR4 billion.

As per the initial contract, the railroad was to be completed in 2017.

However, only the 7.5 kilometres section from Bathnaha to Biratnagar has been completed so far.

Work on the remaining section from Biratnagar to Katahari is still limping.

The locals of Maheshpur in Katahari Rural Municipality-1 have been protesting against the construction of the railway tracks saying that the compensation offered for the land was nominal.