The logistic service providers (LSPs) are an integral component of the supply chain. Acting mostly as intermediaries, they are responsible for the transport, storage and delivery of goods, ensuring that all of it is done in a cost and time effective manner. Nepal, as a landlocked developing country (LLDC), faces several challenges adapting to the evolving trade environment owing both to its geographical structure and the tenacious bottlenecks that exist within the supply chain networks. Post trade liberalization, Nepal sought to diversify its economic relations within the immediate region and beyond. The fact that it was a landlocked state further meant that it was dependent, and overtly so, on the transit agreements as well as the clarity of its own developmental policies to secure its economic interests in the rapidly globalizing world order. The role of LSPs within this was to ease the process of trade. However, in practice, this has been a hefty objective for the concerned actors and the overarching institutions to achieve. The report sought to broadly understand the apparent capacity gaps of the LSPs, paying heed to their overall role within the supply chain in Nepal, further emphasizing the institutional and infrastructural constraints that these entities face, lastly, providing some recommendations to address them.