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The development of transport infrastructure in the border region is a practice of both connectivity and geopolitics.

Citing security issues, the Chinese side time and again, closes the border point from their side.

Before the 2015 earthquake, the Kodari customs point collected as much as NPR 6 billion in revenue annually. In FY 2019/20, only NPR 1.27 billion of revenue was raised. Plans to develop the border point as a major junction linking China to the whole of South Asia. Political tensions arising out of one border town spill over to the other across the border.

Citizens from both border areas are mandated to apply for Nepal-China border entry/exit passes. Madhesi (Andolan) protests was of maximum intensity at Birgunj-Raxaul region that saw overarching impact throughout many regions of Nepal.

Economic aspects

Post the 2015 earthquake, the focal border point for trade and transit between Nepal and China has shifted to Rasuwa-Kerung border point. The Birgunj dry port connecting Nepal to India through rail is a pivotal point for Nepal in terms of trade and connectivity. Once a sprawling town with bustling economic activity, the construction of East West highway gave prominence to other neighbouring towns.

Thousands of locals as well as traders from the region lost their livelihoods post the 2015 earthquake. Increased economic activities have attracted a large pool of local workers from surrounding region as well as Chinese workers from across the border. The Nepali border inhabitants travel to Raxaul to meet their daily needs as essentials are cheaper and are not required to pay custom duties on such essentials for household use. On the other hand, Indian border inhabitants buy such goods in Nepal that originate from third countries. Bhadrapur experiences a decent amount of economic activity on haat bazaar days.