Impact of Dry Ports on Time and Cost of Logistics Management in Nepal

Abstract

The objective of this study is to analyze the impact of dry ports on logistics time and costs in Nepal. This study used panel data from 1991 to 2024 to investigate the impact on logistics time and cost assessment using a fixed-effects model. The study findings show a positive and significant impact of dry ports on logistics time and cost reductions in Nepal. The Hausman test and VIF results both provide evidence supporting the validity of the fixed-effects estimates. Furthermore, the time and cost analysis as well as the performance analysis of selected dry ports, namely Tatopani ICP, Chobhar ICD, Nepalgunj ICP, Birgunj ICP, and Birgunj ICD.  This study has also used vehicle tracking for the entry and exit data of a total of 167,940 vehicles from January 1 to July 20, 2025. The analysis of logistics and economic indicators shows that the selected ports are performing well, make a sustainable economic contribution, and have already been successfully operating under the public-private partnership model. Therefore, this study concludes that the construction of selected dry ports in Nepal is rational for reducing logistics time and costs, facilitating trade, and generating employment, thereby supporting overall regional and national economic productivity.