Bhutan’s Status of Transport Connectivity
including Transit Facilitation in South and
South-West Asia
Tshering Wangdi
Chief Engineer
Department of Roads
Ministry of Works & Human Settlement
Pema Wangchen
Joint Collector
Department of Revenue & Customs
Ministry of Finance
Royal Government of Bhutan
COUNTRY LOCATION
BHUTAN AT A GLANCE
(2013)
Area (sq.km)
Dzongkhags /Districts
Geogs (blocks)
Capital
Population (2012)
Currency
National Language
Per capita GDP
GDP growth rate
- Forest cover

-
38,394
20
205
Thimphu
7,20,679
Ngultrum
Dzongkha
Nu.138,132 (2012)
4.6% (2012)
72.5%
ROAD TRANSPORT VISION
2020 MILESTONES
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Bring 75% of rural population within half-day’s
walk from nearest road
Upgrade current national trunk roads to carry
30-ton capacity trucks
Complete second transnational highway
(Southern E-W Highway)
Construct “dry ports” at Phuentsholing, Gelephu,
and Samdrupjongkhar
Introduce domestic air services
Improve external air links with full ILS capacity
ROAD SECTOR MASTER PLAN
(2007 – 2027)

Construction of Southern East-West
highway (794 km) –Primary National H/way)
New construction
Upgradation
: 506 km
: 288 km
Secondary National H/way
(inter Dzongkhag connectivity)
: 537 km
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Dzongkhag Roads
: 2654 km
TRANSPORTATION SYSTEM
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Road is the principle mode of transport in the
country
Construction began in early sixties and the national
road network expanded over 10,000km
All twenty districts are connected by road network
Road construction in the country is costly and
challenging due to rugged mountainous terrain
Air services operate to nine destinations in five
countries: Delhi, Kolkata,Gaya,Guwahati,Bagdogra
(all in India)
TRANSPORTATION SYSTEM CONTD.
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Air services operate to nine destinations in five
countries:Delhi,Kolkata,Gaya,Guwahati,Bagdogra
(all in
India) Dhaka,Katmandu,Bangkok and Singapore.
A private airline has been licensed and commenced
operation in 2013
Domestic air services commenced since December
2011
No rail transport, no inland water transport and no
dry port
Passenger and freight in land transport fully
privatized
TRANSPORTATION SYSTEM CONTD.

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Motorization has been rapid with the number of
vehicles increasing from 13,584 in 1997 to 67,499
in 2012 with an annual increase of about 11%
Overall 100 vehicles for every 1000 population
Vehicle model split
Trucks/Buses
-14%
Light vehicles/passenger cars
-58%
2Wheelers
-14%
Taxis
-08%
Others
-06%
HIGHWAY NETWORK
ROAD NETWORK IN KM
(June 2013)
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Expressway
Primary National Highway
Secondary National Highway
Dzongkhag Road
Thromde (Urban) Road
Farm Road
Access road
6
1860
578
1178
350
5376
1230
--------------------------Total:
10578
-----------------------------
11th 5 YEAR PLAN PROGRAMMES
(July 2013 to June 2018)

Construction of Primary National H/way - 305 km

Upgradation of National Highways
- 562 km

Construction of Dzongkhag Road
- 122 km
PHUENTSHOLING – THIMPHU HIGHWAY
(AH48)
Year of construction
Length (km)
-1968
-179
Section
Length
Phuentsholing-Chukha
Chukha-Damchu
Damchu-Thimphu
82.5 km
43.5 km
53.0 km
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Present traffic volume
No. of Lanes
2
1
2
-
Class
II
III
II
1500-2000 vpd
ASIAN HIGHWAY (AH48) FROM PHUENTSHOLING TO
THIMPHU
STATUS:
Phuentsholing to Chukha (82.5km) - completed
Chukha to Damchu Bypass (24 km):
Formation cutting
Blacktopping
Completion date
Damchu toThimphu (53km)
- 98% complete
- 44% complete
- 2015
- completed
CONSTRUCTION OF SOUTHERN EAST-WEST
HIGHWAY (SEWH) - 723 km
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Existing
Missing links
- 338 km
- 385 km

Connect economic hubs in southern part of the
country and onward connection to India
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Link to the Asian Highway Network in the subregion and beyond
TRANSPORT LOGISTICS - INTERNATIONAL
CONNECTIVITY
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International Airport (Paro)
1 No.
Domestic Airports
3 Nos.
(Bumthang, Yonphula, Gelephu)
Nearest international sea-port is Kolkata in India
(750 km by road from Phuentsholing)
Nearest railway stations from Bhutan:
-Rangia, Bongaigaon, Kokrajhar (Assam, India)
-Hashimara, Alipurduar, New Jalpaiguri (W.Bengal,
India)
ROAD LINKAGE TO NEIGHBORING COUNTRIES
Point in BHUTAN
Phuentsholing
Samtse
Gelephu
Samdrupjongkhar
Nganglam
Gomtu (Pugli)
Point in INDIA
Jaigaon
Chamurchi
Dadghari
Darranga
Pathsala
Birpara
INTERNATIONAL CONNECTIVITY
AH48

Thimphu-Phuentsholing in Bhutan
AH48 &AH2 (for connectivity with India,Nepal &
Bangladesh)

Phuentsholing-Jaigoan-Hashimara-Phulbari-PanitankiKakarvita for Bhutan, India & Nepal

Phuentsholing-Jaigoan-Hashimara-ChangrabandhaBurimari-Banglabandha for Bhutan, India & Bangladesh
CORRIDORS IDENTIFIED UNDER SASEC ROAD
CONNECTIVITY PROJECT
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Nganglam-Dewathang H/way (75km)
Pasakha Access Road (2km)
Northern bypass in Phuentsholing
(2.7km)
Mini Dry Port at Phuentsholing
Study for links for regional connectivity
from Gomtu/Pugli to Dalmore/Birpara
and Motanga(Bhutan)/Bokajuli(India)
CORRIDORS IDENTIFIED UNDER SAARC REGIONAL
MULTIMODAL TRANSPORT STUDY (SRMTS)
Road corridors:
1.
Thimphu-Phuentsholing-Jaigaon-HashimaraKolkata/Haldia
2.
Thimphu-Phuentsholing-JaigaonBurimari(Bangladesh)-Mongla/Chittagong
3.
Samdrup Jongkhar-Guwahati-ShillongShilhet(Bangladesh)-Dhaka-Kolkata
4.
Thimphu/Paro-Phuentsholing-HashimaraSiliguri-Kakarvita (Nepal)
CORRIDORS IDENTIFIED UNDER SAARC REGIONAL
MULTIMODAL TRANSPORT STUDY (SRMTS)
Rail corridor:
Pasakha-Toribari-Hashimara (India)
Feasibility study being carried by Government of
India to connect five border towns in Bhutan
from the nearest Indian railheads.
CROSS-BORDER TRAFFIC MOVEMENT
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Being landlocked, sub-regional, regional and international
connectivity by land transport is possible through India only
Phuentsholing near Jaigaon in West Bengal is the main gateway
for international trade (over 82%)
About 55%import and 94% export takes place with India
Trade with other countries within the SAARC region is marginal
Transport connectivity with Nepal and Bangladesh is possible
through India only
Sea port in India (Kolkata and Haldia) are the main Maritime
gateways for international trade with other countries other than
Nepal and Bangladesh
KEY CHALLENGES
FOR ROAD INFRASTRUCTURE DEVELOPMENT
AND TRANSIT TRANSPORT OPERATION
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High construction and maintenance cost due fragile,
rugged mountainous terrain and winding roads
Shortage of fund
Fledgling construction industry
Lack of appropriate construction technology
Shortage of trained manpower
Transport and transit through India in absence of Inland
container depot
Small volume of cargo makes it unfeasible to book railway
wagons or use bigger containers to and from the sea port.
SUB- REGIONAL AND REGIONAL TRADE FACILITATION
INITIATIVES

Accession to the Revised Kyoto Convention (RKC)
-ADB assistance being sought under ADB funded SASEC Trade Facilitation
Program to assess and update Bhutan’s legal and regulatory regime for
accession to RKC;
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Automated customs management
-Automated Customs Systems (ACS) being replaced by Revenue
Administration Management Information System (RAMIS) being developed
under ADB funded TA
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SAARC Regional Multimodal Transport Study adopted in 2007
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South-Asian Sub-Regional Economic Cooperation Program of the ADB
completed in 2005 covering 4 countries: India, Nepal, Bangladesh and Bhutan
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Bay of Bengal Initiative for multi-Sectoral Technical and Economic Cooperation
or BIMSTEC Transport Infrastructure and Logistics Study covering Bangladesh,
Bhutan, India, Myanmar, Sri-lanka and Thailand.
Bilateral Trade and Transit Agreement
Agreement on Trade and Commerce with India.
Allows free trade between the two countries through designated entry
and exit points
Transit of cargo from sea-ports are subject to very minimal checks
There is also free movement Bhutan registered vehicles in India
Agreement on Trade and Commerce with Bangladesh
International trade takes place through 6 entry and exit points from
the Indian side and 8 from the Bangladesh side
Agreement on Trade and Commerce with Nepal
No formal trade and transit agreement so far.Panitanki near Siliguri in
India is designated as the transit route for Bhutan-Nepal trade
Bhutan Customs: Current Status
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For Third country Imports- majority of the
goods are transported in containerized
cargo.
Goods coming from India- are transported
in open trucks
Free entry and exit of vehicle to the
country within proximity 7-10 KM
Multi-enforcement agencies involved to
clear the goods
BHUTAN CUSTOMS:
CHALLANGES
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Lack of tracking equipments for tracking the
movement of good for predictability purpose
Goods transported in open truck rather than in
containerized vehicle.
Lack of multi-access bypass from importing
country to exporting countries.
Bad road condition.
Multi check post on the highways (local
authorities)
Timely border coordination meetings
THANK YOU
&
TASHI DELEK