In what could well turn out to be a diplomatic coup, India has proposed to run a container train connecting Lahore, New Delhi, Biratnagar (in Nepal) and Dhaka. The train is aimed at promoting regional solidarity and boosting trade within the subcontinent through easier movement of goods.

The plan was first mooted by India in July this year at the meeting of transport ministers of Saarc countries in Colombo. Pakistan and Nepal are fully on board. In fact, Pakistan?s ministry of railways has given its technical approval for this. The proposal is now with the ministries of commerce and external affairs for their perusal.

Bangladesh is, however, proving to be the only stumbling block and is still not fully convinced of the plan. According to officials in the external affairs ministry, the issue has been pending for some time, but due to political uncertainty in the neighbourhood had taken a back seat.

The container train link is on the agenda when Prime Minister Manmohan Singh meets his Bangladeshi counterpart Sheikh Hasina next month. ?We are hoping for some sort of announcement after their meeting,? a ministry of external affairs official told FE.

If all goes well, this first-of-its-kind container train service can be flagged off by early next year, a senior railway ministry official said. Indian Railways is willing to provide the rolling stock for the container line. All four countries already have broad gauge so are technically compatible, a railway official explained.

As reported by FE earlier, talks are already on between the four countries to run a passenger train service. Officials said this project would now be taken up after the container train service is started.

There are already rail links in the subcontinent. India runs passenger and container train services with Pakistan. While there is Maitrayee Express, a passenger train service between India and Bangladesh, India has set up a container depot in Biratnagar. But this would be the first time that a common service would unite all four countries of the subcontinent. Trade with Bhutan is also expected to get a boost through this line.

This will also be the first time when rail freight movement will start between India and Bangladesh. New Delhi has also long been pressing for a transit right through Bangladesh to carry goods to and from the northeast and has offered to invest in the development of necessary infrastructure. Both sides are expected to ink a deal in May 2010 on India?s access to the Ashuganj Port in Bangladesh that it wants to use to transport heavy equipment for a power plant in Tripura.