HMG/Nepal has established the "Nepal Intermodal Transport Development Board" (NITDB) in 2054 BS in accordance with the provisions of the Development Board Act 2013 BS. NITDB is chaired by the Secretary in the Ministry of Industry, Commerce and Supplies and consisted of members from public and private sector entities. The main objective of NITDB is to oversee the economical and efficient management of Inland Clearance Depots (ICDs) for facilitation of Nepal's foreign trade. The functions, duties and powers of the NITDB are, inter alia, as follows:

• To develop, manage and promote ICD terminals for the facilitation of Nepal's exports and imports;
• To enter into agreement with private sector company, selected on the basis of competitive bidding, for leasing out the management of ICD terminals;
• To prescribe criteria in determining the service charges of the terminal operation;
• To conclude railway operation agreement with Indian Railways for rail movement of cargo to/from ICD.

The three ICDs of Biratnagar, Birgunj and Bhairahawa have been handed over to NITDB for their management and operation by Nepal Multimodal Transit and Trade Facilitation Project after the completion of their construction.

HMG/Nepal launched the Nepal Multimodal Transit and Trade Facilitation Project (NMTTFP) with an estimated total cost of US$ 28.5 million which included funding of US$ 23.5 million credit from the World Bank and US$ 5.0 million from the Government. The Project was initiated in 1998 to construct rail based ICD in Birgunj and road based ICDs in Biratnagar and Bhairahawa, procure four Reach Stackers for Birgunj ICD, operation of Automated System for Customs Data (ASYCUDA) and Advance Cargo Information System (ACIS), trade and transport facilitation, reform and introduction of transport and multimodal legislation.
Railway lines from Raxaul to ICD Birgunj were constructed under the grant assistance of the Government of India.