Nepali officials say the Indian Railways Board is moving slowly on decisions regarding the commissioning of the rail link between the Inland Container Depot (ICD) being built in Birgunj, and Calcutta's Haldia port. This could delay the start of operations after the ICD is ready in December.
Nepal sent Indian authorities a draft proposal on the operation modalities early this year but has not received a response despite several reminders. The rail link between the ICD and Haldia port would reduce freight costs by as much as 30 percent. The late start of construction of the rail link has already delayed the completion of the ICD by nine months. The US$28.5 million "dry port" is being funded by a US$23.58 million World Bank loan and a US$5 million contribution from the Nepali government.