BEIJING, August 2025 — China State Railway Group has established the Xinjiang–Tibet Railway Company with a registered capital of 95 billion yuan (US$13.2 billion) to build and operate the new Hotan–Lhasa railway.

The company’s remit extends beyond railway operations to include engineering, real estate, tourism, catering, accommodation, and international project contracting.

The new line will connect Hotan in Xinjiang to Shigatse in Tibet, linking up with the existing Shigatse–Lhasa route. Together, the network will form a 2,000-kilometer strategic corridor linking northwestern and southwestern China.

The project is part of a broader plan to create a 5,000-kilometer plateau rail framework centered on Lhasa by 2035, including additional routes from Qinghai, Sichuan, and Yunnan.

Engineers face formidable challenges building across the Tibetan Plateau, including high altitude, permafrost, glaciers, and winter temperatures dropping to –40°C. The railway’s proximity to the Line of Actual Control (LAC) with India further underscores its strategic importance.

Surveying work is underway, and construction is expected to begin by the end of the year. The line has been on China’s national railway agenda since 2008, highlighting its long-term significance in the country’s transport strategy.