For the first time, tank containers carrying raw oil have arrived at Birgunj Dry Port, marking a significant milestone in Nepal’s trade logistics.

A rail consignment of 90 twenty-foot tank containers carrying 20,000 tonnes of crude soybean oil entered Nepal via Birgunj Dry Port on Sunday, informed Nepal Intermodal Transport Development Board (NITDB) in a statement on Tuesday.

The shipment, purchased by Shivashakti Pvt. Ltd., a cooking oil manufacturer based in Jitpur, Bara, was transported from Argentina through Haldia Port, India.

This practice of carrying crude oil via rail containers is expected to reduce transportation costs by approximately 15 per cent compared to road freight, according to officials from the importing company. Until now, crude oil was being transported only by road which was costly and faced logistical challenges including tanker shortages.

Birgunj Dry Port, which came into operation in 2004, handled containerised, bulk, and breakbulk cargo initially. However, from July 1, 2023, it also began handling loose and dirty cargo such as coal. With the introduction of crude oil imports via rail, trade through the Birgunj border is set to expand further, informed the NITDB.

"One of the key advantages of tank containers is their sealed transport system as it prevents theft and leakage, and ensures safer and more efficient imports," read the statement.

Likewise, the use of rail transport helps address the shortage of road tankers, providing a more reliable supply chain for oil importers.

NITDB's Executive Director, Ashish Gajurel, said that this initiative will significantly enhance Nepal’s international trade facilitation and help Birgunj Dry Port operate at full capacity.

“We started handling coal last year, and now we have successfully introduced crude oil imports. We are continuously working to increase the capacity of our ports and modernise our operations,” Gajurel said.

According to him, the arrival of tank containers at Birgunj Dry Port marks a positive step in streamlining Nepal’s trade logistics and improving cost efficiency for importers.