• Face-to-Face
Nepal's transport landscape is on the brink of transformation, with railways promising to drive economic growth and regional integration. To explore this potential, The Himalayan Times spoke to Ashish Gajurel, a seasoned transportation systems expert and the Executive Director of the Nepal Intermodal Transport Development Board. With a Master's degree in Transportation Systems from Germany's prestigious Technical University Munich and a portfolio that includes pioneering the Chobhar Dry Port project, Gajurel is no stranger to envisioning and delivering impactful infrastructure solutions. Gajurel has also authored the internationally acclaimed book Performance-Based Contracts for Road Projects and contributed extensively to the discourse on transportation and public infrastructure through national and international platforms. From his academic tenure at Tribhuvan University to consulting with the Investment Board Nepal, his expertise spans policy, operations, and innovation in logistics and transport. In this engaging conversation, Gajurel offers a deep dive into how railways could reshape Nepal's trade landscape, the economic opportunities they unlock, and the role of regional partnershipsin driving this transformation.
THT: Nepal has long relied on road transport. How does the Bathnaha-Nepal Customs Yard railway link change the game for trade and logistics?
Road transport has been Nepal's backbone for decades, but it comes with high costs, delays, and heavy maintenance. The Bathnaha-Nepal Customs Yard railway link marks a shift towards a more efficient, economical, and sustainable logistics system. Integrating Nepal's eight operational dry ports with rail connectivity has already shown measurable benefits. For example, at Birgunj, trade volumes have surged while transportation costs and delivery times have significantly reduced-all enabled by seamless rail integration with India.The Bathnaha connection holds a similar promise. It reduces costs and sets the stage for Nepal to become a logistical hub for South Asia. India's rail infrastructure, which is among the largest and most efficient in the world, provides us with a close and proven model of success. By emulating India's railway systems, Nepal can unlock its trade potential and elevate its competitiveness in the global market.
THT: What logistical challenges does this railway link address, and how does it make Nepal more competitive?
Nepal has grappled with traffic bottlenecks at border crossings, high road maintenance costs, and the unpredictable nature of road freight. The Bathnaha-Nepal Customs Yard railway directly addresses these issues by offering a reliable, cost-effective alternative. Goods now move faster, with minimal delays, thanks to advanced customs processes and logistical systems inspired by Indian railway operations.Indian railways have revolutionised freight logistics, moving billions of tonnes annually while ensuring punctuality and cost-efficiency. Adapting these principles to Nepal allows us to overcome our logistical hurdles. Importantly, this link strengthens our ability to compete regionally by slashing transportation costs and improving trade reliability-key factors for attracting investment and boosting exports.
THT: What features of the proposed Raxaul-Birgunj-Kathmandu railway make it a game changer for Nepal?
The Raxaul-Birgunj-Kathmandu corridor has all the ingredients of a transformational project. First, it serves both freight and passenger needs, ensuring economic viability. Second, it connects Nepal's capital directly to India's extensive rail network, unlocking new trade, tourism, and economic opportunities. India's railway innovations-such as high-capacity goods trains and automated cargo handling-can make this corridor a benchmark for efficiency in Nepal. This railway could also link Kathmandu to religious and tourism hotspots like Lumbini, Pashupatinath, and Janakpur, making Nepal a key destination for regional and global travellers.Moreover, the expertise of Indian Railways, which has successfully navigated diverse terrains and climates, is invaluable for overcoming Nepal's challenging geography. The project would require significant investment, but its long-term economic and social returns would far outweigh the costs.
THT: How do railways reduce Nepal's reliance on road freight and improve its economic prospects?
Railways are the backbone of efficient freight systems worldwide, offering a cost-effective alternative to road transport. Two critical freight corridors in Nepal-Visakhapatnam-Raxaul-Birgunj and Kolkata-Raxaul-Birgunj-already demonstrate this potential. These rail links, supported by India's vast network, have reduced transportation costs for goods, making Nepalese exports more competitive.Roads will remain necessary for last-mile connectivity, but they cannot match the scalability and sustainability of railways. For example, India has demonstrated how railways can drastically reduce logistics costs while supporting industrial growth. By investing in similar systems, Nepal can channel its trade growth through railways, fostering economic development across multiple sectors.
THT: Railway projects require significant maintenance and operational expertise. How has Nepal ensured their smooth functioning?
Nepal's railway infrastructure greatly benefitsfrom India's expertise. From construction to operations, Indian railway authorities have provided essential technical and logistical support. In Birgunj, for instance, 90 freight trains arrive each month, all operated by Indian teams. These trains exemplify the efficiency and precision that Indian Railways is known for.To ensure sustainability, Nepal has partnered with Indian experts to conduct workshops, training programs, and technology transfer initiatives. These efforts are not just about maintaining the system-they're about building a skilled workforce in Nepal that can eventually take full ownership of our railways.
THT: How has the railway project contributed to Nepal's skill development and technological advancement?
The railway initiative has catalysed capacity building in Nepal. Indian-led programs have introduced advanced cargo handling, railway operations, and maintenance techniques to Nepali personnel. These training efforts have empowered local teams to operate modern railway systems confidently.Beyond training, Indian Railways' research and development capabilities present an economic and technological advantage for Nepal. By leveraging India's cost-effective R&D solutions, Nepal can adopt cutting-edge technologies without the prohibitive costs of developing them from scratch. Over time, this collaboration will enable Nepal to build a self-reliant railway ecosystem.
THT: How does rail transport contribute to Nepal's environmental sustainability goals?
Railways are inherently greener than road transport. A single train can replace hundreds of trucks, reducing congestion and emissions. This shift is fundamental in Nepal, given our reliance on diesel-powered vehicles. Electrified rail systems, powered by our abundant hydropower, could dramatically cut greenhouse gas emissions and fuel costs.India's railway modernisation efforts, such as the widespread adoption of electrified trains, serve as a model. This blueprint allows Nepal to achieve a more sustainable transport system that aligns with global climate goals while boosting economic efficiency.
THT: What are the long-term economic impacts of railways on Nepal's growth?
Railways are a proven driver of economic growth. Reducing transportation costs enables businesses to expand, increase trade volumes, and attract investment. Nepal's railways can make our exports more competitive and lower the cost of imported goods, benefiting both businesses and consumers.Take India as an example: its railways connect vast markets and serve as a platform for industrial and agricultural development. Nepal can replicate this success by focusing on rail corridors that connect key economic zones, ensuring that railways become an integral part of our national growth strategy.
THT: How do railways integrate with other infrastructure projects to enhance Nepal's connectivity?
Railways complement Nepal's road networks and dry ports, creating a multi-modal transport system that is more efficient and reliable. Integrating rail with existing infrastructure enhances trade facilitation, particularly with India, our largest trading partner.India's strategic investments in Nepal's railway network are not just about connectivity but about fostering economic integration. By aligning our railways with cross-border infrastructure projects, we can solidify our position as a trade and transit hub in South Asia.
THT: What message does the railway project send about regional cooperation and Nepal's trade aspirations?
This railway project is a testament to the power of regional partnerships. It highlights the mutual benefits of collaboration with India, which has brought its expertise, resources, and technology to Nepal. The project underscores Nepal's commitment to enhancing trade and connectivity within the country and across the region. The Raxaul-Birgunj-Kathmandu railway symbolises more than just infrastructure-it is a bridge to economic growth, environmental sustainability, and stronger regional ties. It is a statement that Nepal is ready to embrace a future of shared prosperity with its neighbours.
