Nepal’s only railway service continues to operate as a vital transport link for passengers, but its financial condition is steadily worsening, raising concerns about long-term sustainability.
The railway currently runs from India’s Jaynagar through Janakpur to Bijalpura in Mahottari, covering about 52 kilometres with three daily services. For many locals, it has become a reliable and time-saving mode of transport, significantly reducing travel time compared to road journeys.
Despite its growing utility, Nepal Railway Company Limited has been operating at a loss since its relaunch. Over the past five years, the company earned around Rs 192 million but spent more than Rs 673 million, resulting in a total loss of approximately Rs 481 million. Monthly income stands at about Rs 7.5 million, while expenses reach nearly Rs 12.9 million.
A major reason behind the losses is high operational costs, particularly payments to Indian technical staff. The company currently pays around Rs 112 million per month to India’s Konkan Railway Corporation for technical support, maintenance, and related services. In comparison, salaries for over 100 Nepali staff amount to only Rs 17 million monthly.
The lack of trained local technical personnel has forced continued reliance on foreign expertise, adding to expenses. Other challenges include the absence of permanent staff, limited infrastructure such as workshops and fuelling stations, and the need to import fuel from India.
Management gaps have also affected operations, with the company functioning without a chief executive for an extended period, slowing decision-making and expansion plans.
To improve finances, the company is exploring options such as leasing land for commercial use and developing a railway museum. Experts suggest that expanding cargo services and diversifying income sources will be crucial for the railway to move toward profitability.