Railway Development in Nepal.

The article provides a comprehensive overview of the importance and current status of railway development in Nepal, which has emerged as a central issue in the country's infrastructure agenda. Railway development has been a prominent topic in recent years, gaining significant attention from political leaders, including the current Prime Minister, who has made it a cornerstone of his development strategy. The emphasis on railways is also reflected in the manifestos of major political parties, underscoring its importance in national development.

Historically, Nepal's railway journey began in 1927 with the establishment of a 39 km railway line from Raxaul to Amlekhganj. However, this early venture was short-lived, and the country saw limited progress in railway infrastructure for nearly nine decades. Recently, the issue has resurfaced, with renewed efforts to integrate railways into the national transportation network. Key projects like the Janakpur-Jaynagar railway service have resumed operations, and cargo rail links from India to the Birgunj Dryport have been established. Additionally, Biratnagar has been connected to the railway system, marking significant progress in the country's rail infrastructure.

Nepal's geographical positioning between India and China, both of which boast extensive and well-developed railway networks, further highlights the urgency of developing its own railway system. China has the world's second-largest railway network, spanning over 150,000 km, while India has the fourth-largest, with more than 68,000 km. For Nepal, developing a robust railway network is not only essential for improving domestic connectivity but also for enhancing international trade with these neighboring giants.

Transportation infrastructure is often considered the foundation for all other forms of development. The article points out that one of the key indicators of a country's prosperity is the state of its transport infrastructure. While Nepal has constructed a road network of approximately 100,000 km, more than two-thirds of these roads were built by local governments without adhering to engineering standards. As a result, the quality of these roads is deteriorating, limiting their potential to support the country's growth. Railways, on the other hand, offer a more sustainable and reliable alternative, with the potential to drive economic development and industrial growth.

Drawing parallels with historical examples, the article notes that the discovery of the steam engine in 18th-century England led to rapid industrialization and the growth of the United Kingdom. Similarly, the extensive railway networks in India and China have played a crucial role in their economic progress. Nepal, too, can achieve similar growth by strategically developing its railway infrastructure. The government has already initiated several projects in this regard. In 2009, a feasibility study was conducted for the East-West railway, which spans 945 km. Construction of the Bardibas to Lalbandi section has already begun, marking a significant step toward the realization of a national railway system.

The establishment of the Department of Railways in 2011 was another critical milestone in Nepal's railway development journey. Additionally, the signing of the China-led Belt and Road Initiative (BRI) in 2017 has opened up new opportunities for Nepal to connect with international rail networks. For Nepal, linking its railway system with China and India is not just a strategic priority but a necessity for promoting international trade and tourism.

To make the East-West railway line viable, it is essential to connect it to Kathmandu, the capital city, which has a dense population and serves as the country's economic hub. Other important railway projects include the Kerung-Kathmandu and Kathmandu-Raxaul railways. The Raxaul-Kathmandu route is expected to be around 140 km, while the Kathmandu-Kerung route will be approximately 150 km. Notably, China is expected to complete the construction of a 540 km railway line from Sigatse to Kerung by 2025, bringing the Rasuwagadhi border, just 24 km from Kerung, within easy reach.

However, the article highlights the challenges associated with railway development in Nepal. The private sector has shown little interest in investing in railway projects due to the high capital costs and significant development risks involved. As a result, the government must take the lead in financing these projects, either through its treasury or by securing concessional loans from multilateral and bilateral organizations. The construction of railways, particularly in hilly and mountainous terrains, is expected to be costly. The article estimates that constructing a double-track railway system from East to West could cost around NPR one billion per kilometer, with costs rising significantly in more challenging terrains.

Using the Kerung-Kathmandu railway as an example, the article provides an estimated timeline for railway development in Nepal. If development work were to start immediately, it would take approximately two years to hire a consultant with expertise and conduct a feasibility study. An additional year would be needed to choose the best development modality and prepare a Detailed Project Report (DPR). The selection of a construction contractor would take another year, meaning that actual construction would likely begin only after four years. The construction itself is expected to take four to five years, depending on the length of the network. Given the complexities involved, the article argues that Public-Private Partnerships (PPP) are not suitable for such projects, and the government should maintain full control over the process.

The Way Forward

The article concludes by emphasizing the economic benefits of developing a railway network in Nepal. Studies have shown that logistic costs can be reduced by 30 percent when goods are transported by rail compared to roadways. Therefore, expanding the railway service is critical for the country's economic development. The immediate focus should be on developing the East-West Railway Service, as well as the Kerung-Kathmandu and Kathmandu-Raxaul railways. These projects have the potential to create a conducive environment for both national and international trade, stimulating economic growth.

To successfully implement such large-scale infrastructure projects, the article suggests that the government must enact a separate railway act and establish a strong authority to oversee all project-related work. Developing one railway project will not only enhance Nepal's transportation infrastructure but also build expertise and experience for future railway development projects.

Note: This article is from Nepal Infrastructure Summit 2024 by Ashish Gajurel. For more details, please visit Nepal Infrastructure Summit.