Nepal's largest Inland Container Depot (ICD) or dry port, at Alahu near Birgunj, will be ready for operations mid-February-11 months behind schedule-when contractors are expected to finally hand it over to the government. Two other dry ports at Bhairahawa and Biratnagar are already operational.
Over 70 percent of Nepal's trade takes place through Raxaul bordering Birgunj. The new dry port with a broad-gauge rail link with the Indian system is expected to heavily reduce transport costs, both on raw material imports and export of finished products. A $23.58 million World Bank loan and another $5 million contribution of the government funded the ICD. The rail link was built with Indian aid.