Nepal has started international trade through China’s third border crossing after two major trade routes remained closed for two months at the prime business time ahead of festivities.

The Korala customs point, which has become a relief for traders, is located at an altitude of 4,650 metres in Upper Mustang and was opened for international trade last week.

This border point was officially inaugurated in November 2023.

The Kaligandaki Corridor that reaches up to the Korala border is connected with Siddhartha Highway in Syangja district and the road ends at the Sunauli border point with India in Rupandehi district.

The route from Nepal-India border point at Sunauli to the Nepal-China border point at Korala through Siddhartha Highway and Kaligandaki corridor is seen as a possible alternative trilateral trade route between the three countries.

According to the Department of Customs, more than 140 cargo containers and 230 electric vehicles (EVs) have cleared customs since September 15, generating a revenue of Rs680 million at Korala customs.

Kishor Bartaula, director at the Department of Customs, said that 168 Chinese containers and 309 EVs await customs clearance.

Customs facilities include quarantine, security, a bank and parking. “The physical infrastructure like buildings and customs yards will be built for two-way trade,” Bartaula said.

Korala is one of the six customs points identified under the 2016 Nepal-China Transit Protocol that gives Nepal access to Chinese land and sea ports, reducing its dependency on India.

The broader agreement is intended to transform Nepal from a landlocked country to a “land-linked” one.

Traders said that compared to Rasuwagadhi and Tatopani border points, Korala is relatively easier.

“Korala customs comes as a huge relief for traders at a time when we were losing hope of goods arriving on time,” said Ram Hari Karki, president of the Nepal Trans-Himalayan Border Commerce Association.

“We rerouted to Korala after not seeing any alternative as 1,400 to 1,500 containers carrying festive goods were stranded on the Tibet side for two months,” he said.

Trade experts noted that while Korala offers a crucial link to China, its operation faces challenges from weak infrastructure on the Nepali side and harsh weather at the high altitude. Winter temperatures drop well below freezing, raising doubts about year-round sustainability.

“But Korala can be a good alternative trading route,” Karki said.

Yet, if Rasuwagadhi and Tatopani operate smoothly, Korala may not be financially viable due to high transport costs. It takes two to three days for vehicles to reach Kathmandu from Korala, compared to a day from Tatopani.

Transportation costs per truck are Rs50,000 from Tatopani to Kathmandu, Rs100,000 from Kerung, and Rs250,000 from Korala. As a result, imported goods from Korala cost 5–7 percent more, traders said.

Still, Korala provides a timely respite. Traders expect around 700 stranded trucks to arrive before Dashain.

Meanwhile, Tatopani border reopened on Monday evening, with 50 trucks expected to arrive on Tuesday, though unpredictable weather remains a concern.

Posh Raj Pandey, chairman of the South Asia Watch on Trade, Economics and Environment, said Korala could be developed into a major trade point if supported by China. “It is a viable route for long-term trade benefits with China.”

Despite its distance and snowfall, Korala faces less risk of floods and landslides than other northern routes. Rasuwagadhi suffers from poor roads, while Tatopani frequently faces landslide disruptions.

Pandey added that since nearly 19 percent of Nepal’s total imports come from China, the government should prioritise developing northern trade infrastructure.

Nepal’s total trade with China was Rs343.73 billion in the last fiscal year, with exports worth Rs2.63 billion and imports worth Rs341.10 billion.