Trade shifts to under-resourced Korala point after Rasuwa and Tatopani closures

Korala, Nepal’s only remaining northern trade route, is struggling to absorb traffic after the Rasuwagadhi and Tatopani crossings came to a complete halt. Customs officials in Mustang are seeking additional staff and equipment as traders prepare to divert containers through the high-altitude border point.

Mustang Customs Chief Bidur Chudal travelled to Kathmandu to coordinate with the Department of Customs and the Ministry of Finance. He said Korala lacked basic customs infrastructure and enough personnel to handle the pressure of two major crossings. Twelve officials currently work there, but at least 15 are needed. The border point also has no staff quarters.

Korala lacks an X-ray machine and walkthrough scanners, forcing officials to inspect cargo manually. “If we had an X-ray machine, it would make the customs process much quicker and easier,” Chudal said. The increased movement of cargo vehicles is also raising concerns about the road to the border, which officials describe as geographically challenging and vulnerable to damage.

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Trade through the Korala is challenging. We don’t have basic customs infrastructure or sufficient manpower. We won’t be able to handle the pressure of two trade points.

Around 175 containers stranded at Kerung after landslides last week are expected to be diverted to Korala, with arrivals potentially beginning on Wednesday. Cargo movement has already slowed because the Thankot-Mugling section of the Prithvi Highway has remained closed for nearly a week. Only eight to 10 cargo vehicles are currently passing through Mustang each day, compared with 30 to 40 containers daily before the festive season when Korala opened to international trade.

Korala sits at about 4,650 metres in upper Mustang. It opened for international trade in September last year after flooding swept away the Miteri Bridge at Kerung, and it was formally inaugurated in November 2023. The Kaligandaki Corridor connects it with the Siddhartha Highway and the Sunauli border point. Officials have viewed the route as a possible Nepal-India-China trade link, but snowfall has repeatedly closed Korala, including for more than a week in April and again in December.

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If we had an X-ray machine, it would make the customs process much quicker and easier.