LHASA - Nepali Vice President Parmanand Jha hopes that a new Tibetan railway can one day extend to Nepal and boost bilateral trade and tourism.

"The people of Nepal are happy to note the opening of the Lhasa-Xigaze Railway, and are eager to see its further extension toward Nepal," Jha said on Friday at the First China Tibet Tourism and Culture Expo in Lhasa, regional capital of Tibet.

Opened in August, the Lhasa-Xigaze Railway is expected to boost China's transportation and trade with Nepal, which abuts on the southwestern autonomous region and has been a close trading partner of China.

Jha said Nepal has long been an important transit point between China and South Asia, and there is "tremendous potential" for the two countries to cooperate in trade, tourism, agriculture, energy and minerals.

A major chunk of the two countries' ever-expanding trade has been conducted through Tibet, Jha said, expressing hope that better road and rail connections between Nepal and Tibet would help Nepal further explore the Chinese market.

Jha also noted the growing number of young Chinese tourists attracted to Nepal, and said he hopes a railway will encourage more mainland travelers to cross the border after sightseeing in Tibet.

Nepal receives nearly 1 million tourists each year, with Chinese tourists ranking second to those from India.