Kathmandu: The government has started preparing a detailed project report (DPR) for constructing a dry port at the Korala border point in Upper Mustang along the Nepal-China border.

According to the Ministry of Industry, Commerce and Supplies, Nepal Intermodal Transport Development Board has started preparing the DPR of the newly-planned inland container depot (ICD). For the purpose, the board has handed the work of feasibility study to Sitara Consult Pvt Ltd. Officials at the ministry said the proposed site is located near the no-man’s land in the region and Nechung which is located some 12 km from the Nepal-China border.

Two years ago, China had agreed to allow Nepal to use six dedicated transit points along the Nepal-China border - Rasuwagadhi, Kodari, Yari, Kimathanka, Olangchungola and Nechung - to carry out export and import. The Chinese side had also agreed to allow Nepal to use sea ports in Tianjin, Shenzhen, Lianyungang and Zhanjiang and land ports in Lanzhou, Lhasa and Shigatse — for third-country trade.

The use of additional trade points of China is expected to boost trade with the northern neighbor and the third countries. Currently, China has been allowing Nepal to use two land routes - Tatopani-Khasa and Rasuwagadhi-Kerung - for bilateral trade. However, these trade routes have been facing frequent disruptions, especially after the earthquake in 2015.

According to the ministry, most of the infrastructures that aid bilateral trade have already been completed on the Chinese side of the border. Nepali authorities have started upgrading the 186 km road network that connects Beni-Jomsom-Korala.