Nepal 3PL Warehouse: Upaya’s Kavrepalanchok Project, Logistics Infrastructure Development
25th March 2025, Kathmandu
Upaya, a leader in technology-driven logistics, has revealed plans to construct Nepal’s first large-scale third-party logistics (3PL) warehouse in Sanga, Kavrepalanchok.
Nepal 3PL Warehouse
The Upaya Warehousing project marks a significant advancement in Nepal’s logistics infrastructure. The new warehouse will focus on providing advanced technology and sustainable design to fill key gaps in Nepal’s logistics sector.
Project Overview
The warehouse will cover 18 ropanis (100,000 sq ft) of land. It will be strategically located near the Arniko Highway and Nepal Police School. The facility will include 45,000 sq ft of built-up space with a total storage capacity of over 100,000 sq ft.
The warehouse will use a Grade-A Pre-Engineered Steel Structure (PEB), making it seismic-resistant. It will feature High-Density Racking (HDR) and multi-tier shelving for better storage management. The warehouse will also offer Built-to-Suit (BTS) facilities for anchor clients across various sectors. These include FMCG, FMCD, e-commerce, retail chains, electronics, and auto parts industries.
Sustainability will be a priority in the facility’s design. Green energy, rainwater harvesting, and waste management systems will be incorporated into the infrastructure. Corescape Design LLP, a well-known design firm from India, is responsible for the warehouse’s planning and design.
Financial Details and Investment
The total cost of the project is estimated at NPR 1.2 billion. NPR 950 million has been secured through consortium debt financing. Citizens Bank International and Machhapuchchhre Bank are leading this financing. In addition, Dolma Impact Fund II and other investors are contributing equity to the project.
Ganesh Pokharel, CEO of Citizens Bank International, highlighted the project’s significance:
“This warehouse is a milestone for infrastructure development in Nepal. It will unlock new economic potential for the country.”
Impact on Nepal’s Logistics Industry
Currently, Nepal’s logistics costs account for 20% of the GDP, primarily due to inefficiencies. Upaya’s 3PL model aims to reduce these costs by providing end-to-end solutions. These solutions will include storage, inventory management, invoicing, and transportation services. The new warehouse will help businesses by offering a scalable solution for their logistics needs.
Ranjeev Shrestha, Co-founder of Upaya, emphasized:
“We plan to replicate this model across the country. Our goal is to drive efficiency and modernization in Nepal’s logistics sector through technology and improved infrastructure.”
Industry Support and Future Expansion
The project has received strong support from industry leaders. Santosh Koirala, CEO of Machhapuchchhre Bank, praised the initiative:
“Innovative projects like this are crucial for Nepal’s economic growth. Such developments create opportunities in sectors with limited investible projects.”
The construction of Upaya Warehousing will begin in April 2025. The facility is expected to be completed by the end of 2026. After that, Upaya plans to expand its warehousing network to other major cities in Nepal. This expansion will enhance the country’s logistics and supply chain capabilities.
The launch event for the project saw participation from Dolma Impact Fund, Pragati Infra Solutions (India), logistics experts, financial institutions, and potential clients. This strong industry support indicates that the project will be a key driver of change in Nepal’s logistics sector.
