China and Nepal’s rail line must traverse mountains, geopolitical tensions and enormous costs to get off the ground

The railway between Tibet autonomous region and Nepal’s capital city Kathmandu has been described as technically one of the most difficult undertakings anywhere

Geopolitical tension between India and China, a multibillion dollar price tag and terrain spanning some of the highest mountains in the world are some of the challenges

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The railway would run from Gyirong county in China’s Tibet autonomous region to Nepal’s capital city Kathmandu (pictured). Photo: Bloomberg

Published: 3:00pm, 11 Sep 2022

An ambitious multibillion dollar rail link between China and Nepal must address daunting technical challenges and questions over economic feasibility before construction can finally get under way, experts say.

Chinese Foreign Minister Wang Yi and his Nepali counterpart Narayan Khadka agreed in August to fund a feasibility study for the enormous infrastructure project and Beijing said it would send experts this year to conduct surveys for the railway.

Once built, the railway would run from Gyirong county in China’s Tibet autonomous region to Nepal’s capital city Kathmandu, with some speculating it could also be extended to the tourist hub of Pokhara and southern city of Lumbini, near the Indian border.

President Xi Jinping said in 2019 the project would transform Nepal “from a landlocked country to land-linked country”.

Technically, it will be one of the most arduous and difficult train line construction undertakings anywhere in the world

Nishchal Nath Pandey

“Technically, it will be one of the most arduous and difficult train line construction undertakings anywhere in the world,” said Nishchal Nath Pandey, director at the Centre of South Asian Studies, a think-tank in Kathmandu. “The highest peaks of the world are in the vicinity.”

The Nepalese government said in 2019 that construction would start in the next two years, but progress has stalled due to the coronavirus pandemic. A change of government from former prime minister K.P. Sharma Oli, who favoured stronger ties with China, to the more “pro-Indian” Sher Bahadur Deuba has also left its fate uncertain.

Discussions on the project began in earnest in 2016 when the two countries signed the historic Trade and Transport Agreement that would allow Nepal to use Chinese routes for third country trade. Nepal was looking to reduce its dependence on neighbour India – which accounts for more than 61 per cent of its imports – after it put the country under a prolonged blockade in 2015, disrupting vital supplies of fuel and commodities.