Market Overview
Nepal is in the early stages of developing its rail infrastructure. A cross-border railway linking Nepal to China's rail network at the Tibet border — the Rasuwagadhi–Kathmandu line — is under feasibility study with Chinese support. India has also been involved in cross-border rail projects, with a link from Raxaul to Kathmandu under discussion. A short operational rail line exists at Janakpur in the southern Terai region, operated as a heritage service. Nepal's extremely mountainous terrain makes rail construction technically challenging and expensive. The government's long-term transport vision includes rail connections to both India and China. Nepal's position between two rail superpowers — India and China — gives its rail development significant geopolitical dimensions, with both countries competing to anchor Nepal's connectivity to their respective networks.