Important Bridging Borders: The Nepal-Tibet Railway Project

Building on the Qinghai–Tibet Railway

The project builds upon the existing Qinghai–Tibet Railway—the world’s highest railway network. The line initially connected Golmud to Lhasa before extending further to Shigatse.

The next phase moves southward from Shigatse to Gyirong, a border county located about 25 kilometers north of Rasuwa Gadhi. Once operational, this railway segment could significantly improve freight movement between central China and Nepal.

Enhancing Trade Between Nepal and China

A key objective of the Shigatse–Gyirong railway is to provide a reliable alternative to existing road and air transport options. Currently, much of the trade between Nepal and China relies on mountainous highways, which can be affected by harsh weather, landslides, and seasonal disruptions.

Rail transport offers several advantages:

• Higher cargo capacity
• Lower transportation costs over long distances
• Greater reliability in challenging terrain
• Improved efficiency for bulk goods

For Nepal, this new rail link could streamline imports and exports while reducing reliance on longer maritime shipping routes.

Infrastructure Development on Both Sides of the Border

As railway construction advances toward the Nepal border, infrastructure upgrades are also taking place within Nepal.

Upgrading Road Networks

Improved highway connections from the border to major Nepali cities are essential to support increased trade volume. Strengthening road infrastructure ensures smoother freight movement from border crossings into domestic markets.

Development of Dry Port Facilities

Nepal has initiated plans to develop dry port facilities near the border, particularly in the Rasuwa region. A dry port serves as an inland customs and logistics hub where goods can be processed, stored, and redistributed efficiently.

These developments aim to:

• Simplify customs procedures
• Reduce congestion at border crossings
• Support intermodal transport between rail and road
• Improve overall supply chain management

Demonstrating Growing Freight Connectivity

Freight operations along the railway network have already highlighted its growing importance. Cargo trains traveling from Lanzhou to Shigatse have transported dozens of containers destined for cross-border trade.

Such shipments demonstrate the railway’s potential to create a more seamless logistics corridor once the extension reaches Gyirong. Efficient rail freight services could reduce shipping times and strengthen trade flows between China and Nepal.

Strategic Importance for South Asia

Nepal’s geographic location positions it as a potential trade gateway between China and South Asia. Improved rail access to the Nepal border could create opportunities for expanded regional commerce, benefiting not only Nepal but also neighboring markets.

By shortening transit times and reducing transportation costs, the railway extension may enhance supply chain efficiency across the broader region.

Engineering Challenges in the Himalayas

Extending railway infrastructure across the Tibetan Plateau and Himalayan foothills requires advanced engineering solutions. High altitudes, seismic activity, and rugged terrain make railway construction particularly complex.

The Qinghai–Tibet Railway has already demonstrated the feasibility of large-scale rail projects in extreme conditions. The Shigatse–Gyirong segment continues this engineering effort, combining tunnels, bridges, and reinforced track systems designed for mountainous environments.

Expanding Economic Opportunities

The Nepal–Tibet railway extension is expected to support:

• Increased bilateral trade
• Tourism development between Tibet and Nepal
• Improved cross-border mobility
• Regional economic cooperation

As infrastructure projects progress, enhanced road and rail networks may reduce logistical barriers and foster stronger economic ties between China, Nepal, and the wider South Asian region.

Nepal’s Dry Port and Railway Strategy: Reshaping Trade in South Asia

Nepal is positioning itself as a key trade corridor between China and South Asia through strategic investments in cross-border infrastructure. With the planned extension of the railway toward the Nepal border, the country is accelerating preparations to modernize its logistics network and strengthen regional trade connectivity.

At the center of this transformation is the development of a dry port at Timure, located just three kilometers south of the Nepal–China border.

Timure Dry Port: Strengthening Cross-Border Logistics

The Timure Dry Port is designed to serve as an inland customs and freight handling hub. Once operational, it will streamline the movement of goods between Nepal and Tibet, reducing delays and improving supply chain efficiency.

Key functions of the dry port include:

• Customs clearance and inspection
• Cargo storage and warehousing
• Intermodal freight transfer between road and rail
• Reduced congestion at the border

To oversee the project, Nepal established the Inter-Modal Transport Development Board, reflecting a broader strategy to modernize trade infrastructure and improve logistics management.

By integrating rail and road networks, the Timure facility is expected to support smoother cross-border trade and enhance Nepal’s competitiveness in regional markets.

The Role of Gyirong (Kerung) in Regional Trade

On the Chinese side of the border lies Gyirong Port (also known as Kerung). This customs gateway plays a crucial role in facilitating trade between Tibet and Nepal.

With the railway extension moving toward Gyirong, the border crossing is expected to become an increasingly important trade route linking China to Nepal and potentially to broader South Asian markets such as India and Bangladesh.

The improved rail-to-road connection could create a shorter and more cost-effective corridor for transporting goods across the Himalayas.

Reducing Transit Time for Chinese and Nepali Goods

Currently, a large portion of trade between China and Nepal relies on maritime shipping routes through Kolkata Port. This process can take up to 30–35 days, involving sea transport and inland trucking.

The integration of rail transport to Gyirong and the dry port at Timure could significantly reduce transit time—potentially bringing shipments down to around 10 days for certain routes.

Shorter shipping times offer several advantages:

• Lower transportation costs
• Faster inventory turnover
• Improved supply chain reliability
• Enhanced trade competitiveness

These improvements could make Nepal a more efficient gateway for goods entering South Asia.

Expanding Nepal’s Role as a Regional Trade Hub

The development of rail connectivity and inland port infrastructure reflects Nepal’s long-term vision of strengthening its position in regional trade networks.

By improving cross-border logistics, Nepal aims to:

• Increase trade volume with China
• Diversify transit routes
• Enhance regional economic integration
• Attract investment in transport and logistics sectors

Improved infrastructure may also encourage growth in related industries such as warehousing, freight forwarding, and cross-border e-commerce.

Supporting South Asian Economic Integration

Enhanced railway and dry port facilities are not only significant for Nepal but may also influence trade flows across South Asia. Faster land-based transport routes could complement existing maritime corridors, offering businesses alternative supply chain options.

By reducing logistical bottlenecks and improving customs efficiency, Nepal’s infrastructure initiatives contribute to broader regional connectivity between China and South Asia.

These developments highlight Nepal’s strategic efforts to modernize trade infrastructure and strengthen its role in cross-border commerce.