Nepal revives railways as China, India court it for influence
JANAKPUR: Three years after its last train hit the buffers, landlocked Nepal is building a new railway network to boost its ailing economy -- helped by the rivalry between its powerful neighbours, China and India.
The railway to India was a lifeline for the small southern frontier town of Janakpur, used for importing everything from sweets to clothes and cosmetics and fuelling a vibrant border economy.
But it fell into disrepair after years of neglect and since 2014 the train has sat stationary, its rusting carcass now a playground for local children, while Janakpur’s markets are empty. “When the train was running, we would have a lot of business. I was easily providing (for) my family,” said Shyam Sah, whose small family-run cosmetics shop has suffered an 80% drop in profits since the railway closed.
Now it is being rebuilt with Indian backing, one of three new rail lines -- one funded by China in the north and a third by Nepal itself -- that the country hopes will help boost international trade.
Nepal remains largely isolated from the global economy, dependent on aid and remittances. Growth slowed dramatically after a 2015 earthquake but is expected to normalise at 5% from 2018 -- one of the slowest rates in South Asia -- according to the World Bank.
In recent years it has courted its two large neighbours for investment in an attempt to plug itself into a rail network that links the far eastern reaches of Asia with Europe.