Commerce Ministry officials will be in New Delhi next week for a railway agreement with India that will pave the way for the operation of the Inland Container Depot built near Birgunj with support from the World Bank.

Although the construction was finished two years ago, the ICD has been held up because of the absence of a Railway Act in Nepal. Nepali officials had said they did not want to operate under the Indian Railway Act. With the ICD agreement expiring this month, the government has decided to tentatively begin the operation under the Indian Railway Act. India has already brought its broad-gauge railway line to 400m inside Nepali territory which is linked with the container port. The Rs 920 million project will contribute huge savings for transit costs to Calcutta port for goods to and from Nepal.

Under the ICD project, two other dry ports are already operational in Bhairawa and Biratnagar to facilitate third-country trade and transit.