Indian Railways has achieved a significant milestone in cross-border logistics by successfully operating its first dedicated New Modified Goods (NMG) rake for automotive exports. On July 23, 2026, a specialized train transported 100 Mahindra tractors from Nagpur to Raxaul, located on the Nepal border. This initiative, which was officially reported on July 25, 2026, was managed end-to-end by ATC Global Logistics and underscores a new era of rail-based trade between India and Nepal.
Key highlights of this logistics breakthrough include:
• Successful transport of 100 Mahindra tractors via a dedicated NMG rake.
• Route established between Nagpur, India, and the Raxaul border point.
• Alignment with the amended Nepal-India Transit Treaty 2023.
• Expansion of direct rail transport for both containerized and bulk cargo.
• Significant reduction in logistics costs and improved transit reliability.
Strategic Expansion of Rail Corridors
This operation is a direct result of the Letter of Exchange signed on November 13, 2025, which amended the Nepal-India Transit Treaty. These changes have significantly broadened the scope of rail cargo movement. Previously, rail transport was largely restricted to Birgunj and limited to specific commodities like coal and fertilizer. The updated framework now allows for the movement of diverse cargo from major Indian ports, including Kolkata, Haldia, and Visakhapatnam, to critical points like Biratnagar and Nautanwa inside Nepal.
Boosting Regional Trade
Industry leaders and government officials have praised the move for its potential to transform trade dynamics. Shantanu Bhadkamkar, Managing Director of ATC Global Logistics, highlighted the trust placed in the rail network by major manufacturers like Mahindra & Mahindra. From the Nepalese perspective, Lok Bahadur Poudel Chhetri, Joint Secretary of the Ministry of Foreign Affairs, stated that the service will ease business operations and reduce trade costs for importers.
This development follows the successful launch of direct cargo rail services from Kolkata Port to Biratnagar on July 20, 2026. By shifting automotive cargo from road to rail, Indian Railways is not only enhancing safety and reliability but also helping Nepali industries become more competitive in the global market. As infrastructure continues to evolve, this rail-based corridor is expected to become a cornerstone of regional economic integration.