This study has emphasized the importance of dry port, transport costs and infrastructure in explaining trade, access to markets and increases in per capita income. Inefficient port increases handling costs, which is one of the main components of transport costs. In fact, factors that are influencing variations in port efficiency include excessive regulations, the prevalence of political imbalance and the general condition of the country’s infrastructure. This paper has revealed that landlocked developing countries on an average spent almost two times more of their export earnings for the payment of transport and insurance services than the average of other developed countries; Thus, increased on import costs and reduced export earning naturally drive out landlocked developing countries from the process of reaping the benefits of globalization and liberalization of world economy. Birgunj Inland Containers Depot (ICD) is the only one railway network ICD in Nepal having connection to the broad- gauge railway network with India. It is expected that with the efficient operation of Birgung ICD the transit overhead costs of transportation would reduce by at least 30% to 40%.