Challenges Emerge at Korala Checkpoint as Poor Roads Increase Transportation Costs

Following the devastating flood on September 25 in Bhote Koshi, Rasuwa, which completely destroyed the Rasuwa Gadhi-Kerung border crossing, goods from China have started diverting toward the Korala checkpoint in Mustang. By Sunday evening, 66 cargo container trucks carrying goods from China had entered Mustang, while nearly 100 empty containers had gone uphill to pick up shipments. Traders warn that diverting traffic toward Korala will raise transportation costs and could increase market prices by NPR 100 to 150.

On September 25, a catastrophic flood in the Bhote Koshi river wiped out the Rasuwa Gadhi-Kerung border crossing, a crucial lifeline for Nepal-China trade. With major festivals such as Dashain, Tihar, and Chhath approaching, the total collapse of this key crossing has forced container trucks carrying export goods from the Rasuwa Gadhi-Kerung route to divert toward Mustang’s Korala checkpoint. However, Korala lacks the infrastructure, workforce, and reliable road network to absorb this sudden increase in trade traffic, compelling traders to endure significant hardships and escalating freight costs — a situation certain to drive inflation in Nepal’s markets.

Since goods originally slated for Rasuwa Gadhi are rerouted to Korala, Mustang has seen a sudden surge in large cargo vehicles. According to records from the Armed Police Force’s Jomsom checkpoint, 66 container trucks transporting goods from China had entered Mustang by Sunday evening, with the Jomsom checkpoint noting a growing number of containers being diverted to Korala. Mustang Customs office reports that these cargo containers have yet to arrive at the customs checkpoint itself. Vidur Chudal, Chief Customs Officer at Mustang Customs, explained that diverted goods remain en route, so customs inspections at Korala have yet to commence. Meanwhile, empty containers are now rapidly heading toward Korala to collect cargo. “Currently, only empty containers are going up; no trucks carrying diverted goods have arrived yet,” Chudal stated. “About 100 empty containers have gone uphill to pick up goods, according to our information.”

With no alternative, all diverted goods will now come through Korala, and inspections will be expedited once trucks arrive. Despite government designating Korala as an alternative checkpoint, customs management there remains weak. The Mustang Customs Office, located at about 4,650 meters above sea level, has 18 sanctioned positions but only 12 staff currently working. The lack of adequate infrastructure raises concerns about service delivery. Customs personnel have assured continuous round-the-clock work once cargo containers arrive. Despite poor infrastructure, Korala Customs collected NPR 692 million in revenue in fiscal year 2082/83 (2025/26) and NPR 29 million in just Shrawan of the current fiscal year. Although revenue collection appears strong, traders complain that the government has not correspondingly increased manpower or road upgrades. Chudal noted ongoing discussions with the customs department to boost manpower and infrastructure amid rapidly increasing traffic.

Chudal acknowledged that although the infrastructure on the Nepal side does not match the advanced facilities on the Chinese side, operations continue regularly with available resources. Moving forward, all Chinese imports destined for Nepali markets will pass through Korala. While Korala is adequate for many goods, importing perishable food items faces challenges due to the absence of quarantine facilities and insufficient staff. Traders say that fruit, vegetables, and grains cannot currently be imported through Korala. Road conditions also pose difficulties for both traders and drivers. The road from Mustang to Kathmandu is narrow, unpaved in sections, and geographically challenging, making large container truck movements problematic. Customs Chief Chudal concurred, stating, “From Beni upwards to Ghassa on the Kali Gandaki corridor, there is a risk of landslides; from Jomsom upwards, about 100 kilometers of road remain unpaved. Though traffic can move for now, increased vehicle flow will naturally degrade road conditions, which is a concern.”

Due to these difficulties, traders have requested that sealed containers be brought directly to Kathmandu’s Chobhar dry port for customs clearance. However, customs officials find this impractical citing additional transit time and security risks. Moreover, heavy snowfall typically begins in Mustang shortly after the festive season, hampering year-round operations at Korala. The longer, winding route and damaging landslides at Rasuwagadhi increase transportation costs, inevitably affecting market prices.

Manoj Babu Shrestha, President of the Nepal National Traders Federation, pointed out that diverting goods stuck in Kerung toward Korala will increase transportation expenses. While Rasuwa Gadhi to Kathmandu is about 110 kilometers, trucks must travel nearly 1,100 additional kilometers to reach Korala from Kerung. “We diverted goods stuck in the Kerung transport warehouse to Korala, but the 1,100-kilometer difference significantly hikes transportation costs,” Shrestha explained. “This will impact overall costs, pushing prices of goods up by NPR 100 to 150 in the market.” Items like ready-made garments, shoes, raw materials, food grains, and fruits are expected to see increased freight charges, directly affecting market prices.

Aside from these costs, the main bottleneck for imports via Korala is Nepal’s domestic highway network. Containers entering Kathmandu from Mustang depend heavily on the Muglin-Narayangarh (Prithvi Highway) route, which repeatedly faces blockages. Since yesterday, damage at Krishna Bhir in Dhading has caused a full closure of the Prithvi Highway. “Small vehicles like vans or Tata mobiles can use the South Kali-Sisne-ri-Hetauda route, but large containers cannot,” Shrestha explained. “The lifeline road connecting Kathmandu is blocked, and until it reopens, imports through Korala or any route lack meaning.” Though goods should arrive in five days based on distance, road conditions make transit times uncertain. In the short term, the government has arranged for all cargo vehicles to enter Kathmandu via the Kantipath road.

The government faces multiple challenges: importing via Korala entails higher costs and difficult roads; goods already stuck in Kerung suffered damage from floods, causing further losses for traders. Trucks that had cleared customs but were still in transit were swept away by floods, which traders claim the government has ignored. Moreover, traders feel no sympathy or support from the government. “Around 50 to 70 trucks with cleared customs awaiting release were lost in the floods at Kerung,” Shrestha said. “We paid customs duties, but we have neither received refunds nor compensation. We’ve suffered losses everywhere.”

After Rasuwagadhi collapsed, Sindhupalchok’s Tatopani port was considered an alternative, but diverted vehicles from Kerung would have to make an additional 550-kilometer detour via Tatopani. Furthermore, landslides still threaten the Liping area near Tatopani, making that route unreliable until the end of September. Due to the northern border crackdown, about 40% of Chinese goods now arrive via Indian seaports, taking 1.5 to 3 months to reach Nepal, still using the deteriorated Muglin road for final transport.

Amid this crisis, Mustang’s Korala checkpoint is functioning as a lifeline, but narrow roads, landslide risks, and a mere 12 staff managing billions in trade make seamless operations unlikely. With ongoing rainfall risks, authorities emphasize the urgent need for alternative tracks and road repairs. Experts and stakeholders warn that unless the government urgently upgrades Korala’s customs infrastructure, manpower, and rapidly repairs the Muglin-Narayangarh highway, Nepali consumers will face severe shortages and inflation.