Abuja - Nigeria has started a $41bn railway expansion to reduce dependence on oil and diversify its struggling economy by improving transport links to allow the movement of goods around the country and to ports.

“The plan we have now will go to every nook and corner,” Transport Minister Rotimi Amaechi, 52, said in an interview in the capital, Abuja.

Africa’s biggest oil producer is going through its worst economic slump in 25 years following a plunge in the price and output of oil, which accounts for more than 90% of foreign income and two-thirds of government revenue.

President Muhammadu Buhari’s Economic Recovery and Growth Plan, presented in March, seeks to boost agriculture and manufacturing by developing the country’s transport network and power infrastructure.

Key projects include building a second railway line connecting the nation’s two biggest cities, the commercial capital, Lagos, and Kano in the north. The 1 100-kilometre line will carry freight and passengers. The government also wants to construct a coastal railway that connects Lagos to the eastern city of Calabar.

The two new railways are expected to cost $20bn, with most of the funding coming from the Export–Import Bank of China, which has so far released $5.9bn. China’s Civil Engineering and Construction is building the project and both railways should be ready by the end of 2019, Amaechi said in an interview last week.

GE concession

General Electric is leading a group that’s rehabilitating Nigeria’s 3 505 kilometres of century-old, narrow-gauge railways linking the coastal cities of Port Harcourt and Lagos with the north.

The group, including SinoHydro of China, South Africa’s Transnet and the Netherlands’ APM Terminals will fund, revamp and operate the railways for a period to be decided in negotiations with the government, the minister said. They won the concession in May.

The group plans to invest $2.2bn, Sabiu Zakari, permanent secretary in the Ministry of Transport, said at the time. Nigeria will then have two links between Lagos and Kano, with the new Chinese-built one allowing trains to travel twice as fast as they can on the existing link.

The West African nation is opening up its rail system to private investors following decades of government control. Years of neglect while the nation was in political flux during military rule cut freight-rail capacity to 15,000 metric tons a year in 2005, from 3 million tons four decades earlier, according to the Transport Ministry.

Most goods are now transported on worn-out and congested roads. By comparison, Transnet has the capacity to move more than 70 million tons of coal to one South African port annually.

“The rail in Nigeria was neglected for too long,” said Oke Maduegbuna, managing partner at transportation and logistics consultancy Pete, Moss & Sam. “There’s a new awareness among government officials of the economic benefits of a good rail network,” the Abuja-based expert said by phone, adding that the new projects would succeed only if there is consistency in their planning and execution.

Interstate network

Another $16bn will be invested in additional rail routes to link up all the country’s state capitals and extend across the northern border into neighbouring Niger’s southern city of Maradi, according to the Transport Ministry. Amaechi said it was too early to share a timeline or funding details as the government is still talking to investors for this public-private project.

The government is also trying to complete a $3bn line from Abuja to the southern oil hub of Warri by 2018, the minister said.

With rail links to the existing and planned deep-sea ports, Nigeria hopes to substantially reduce logistics costs and facilitate exports and imports.

“There’s no economic development or growth without logistics, and for logistics to be efficient, you have to deal with the issue of railways,” said Amaechi.

Source: https://www.bloomberg.com/news/articles/2017-08-16/nigeria-seeks-to-diversify-from-oil-with-41-billion-rail-plan

Front Page: Lalasticlala

Only God knows since when I've been hearing the construction of rail by our governments.

We need results now not planning till infinity

Sai Baba

Lol. what a Joke

Well projects are funded with Chinese debt so at least they are paid for. Now it's left to government to be smart and concession these rails to private operators. The Government let the rail capacity shink 200 times. They are not to be trusted.

It is interesting they're planning to build rail network to Niger Republic first. It's odd Africa in general doesn't have much links to neighbors like say Europe does to each other. Maybe this is a play to have them patronize ports more by offering lower cost.

very funny set of clowns .... billions billed for private pockets

It's like he made a mistake he meant 2090

Kontinu

ALL THIS NA LONG STORY,ALL WE NEED IS STABLE ELECTRICITY We will do the rest, is this 2much to ask,if this money is ever borrowed nah voice mail straight.

hmmmm

Nice one



GET RID OF STRETCH MARKS, CHECK MY SIGNATURE.

Amaechi please come and finish your mono-rail you started in PH first.
_God I must be a politician_

Wow! That's a lot of money!

Diversification! when we are spending scarce resources prospecting for oil in borno and the rest of the Chad basin. someone with knowledge of basic geology will no that it is a fruitless venture

Juicy
Laudable to see the resuscitation and expansion on course,

However, Government superintending over capital intensive projects such as this have proven unsustainable and counterproductive, past experience was ladden with parsimonious avidity, rapacious devastation and mind boggling embezzlement,

Issues of inadequacies, ineptitudness, inefficiencies,exacerbated the already aggravated pitiable situation.
China is spreading her tentacles allover sub-saharan, they did wonderful job with the Ethiopian light rail, Nairobi - mombasa-nakuru line in Kenya and extending to daresalam in Tanzania,

Even here, the kaduna - abuja"kubwa-rigasa" was a masterpiece, they have proven their mettle, entrusting them with more projects is not out of place,

If we must diversify, we need logistics to ease transportation, especially taking loads of roads to rail tracks, To improve quicker movement of goods, and elongate the longevity and durability of roads.

If only the dysfunctional ajaokuta steel complex could be recalibrated to add sauce to the pudding

The General Electric concession deal to me is the magic wand,Though, I'm no paragon of clairvoyance, With all forthrightness, I forsee GE, taking the bull by the horn,With the GE manufacturing hub kicking off soon at calabar free trade zone,The future could be so bright, that we might getblinded by it.

Refurbishment of coaches, maintenance of rail tracks, rolling stocks, etc
Better service delivery, refrigerated coaches for agricultural supply chain.

Transfering the Transportation of cargo for freight and petroleum products from our congested and overburdened roads to more safer rail tracks

Once beaten twice shy,
Non governmental interference will fasttrack the project, mobilization fee, consultancy fee, kickbacks and over bloated tips-bribery are cogs in the wheels of the smooth run of projects, like this our leaders should stop mortgaging our future by shortchanging us today.

.

I wonder why make this kind of comparison. Rail is a, infrastructure, oil is a natural resource. One reason for diversification is forex.. This is possible via sales of goods and services outside Nigeria. where are the incentives to strengthen the value of Naira??

Excuse to plunder resources from the South and take it to the North

until its Don its still campaign promise

Una father

I don't know if I'm the only one who has trust issues with every govt. official talking about money. I just feel there're embedded lies at every zero.
It's a good development I hope they accounted for security and maintenance which we seem to lack in this country

LordofNaija:
Diversification! when we are spending scarce resources prospecting for oil in borno and the rest of the Chad basin. someone with knowledge of basic geology will no that it is a fruitless venture

Geologically speaking that argument not true. It's is same basin neighboring countries found oil. Other than that I do agree. NNPC is trash in my opinion. They won't find it unless they get help from IOCs like usual. Check out this book if it's available at local university.

Geology and Mineral Resources of Nigeria by Obaje, Nuhu George.

Edu3Again:
Excuse to plunder resources from the South and take it to the North

That's because Lagos Calabar line runs North to south right.

Alitair:
Amaechi please come and finish your mono-rail you started in PH first.
_God I must be a politician_

Is there no current governor in Rivers state?... Or is the governor of Rivers in coma that you want an ex-governor to come continue a state project he started?... Clowns everywhere!

I am not understanding

At last the crouching tiger is about to pounce.No country in this age really develops without an effective,integrated railway system and culture.India did.So did China.Europe is wired together by it.
So long,guragura buses and trucks.Welcome to the age of the allure of railway!

Blue3k:


Geologically speaking that argument not true. It's is same basin neighboring countries found oil. Other than that I do agree. NNPC is trash in my opinion. They won't find it unless they get help from IOCs like usual. Check out this book if it's available at local university.

Geology and Mineral Resources of Nigeria by Obaje, Nuhu George.

but why have the IOC's decided no to go to borno over the years. Have we bothered to ask ourselves? Yes, it may be the same geological formation but it was never a wise thing done given that the glory days of oil are over

obailala:
Is there no current governor in Rivers state?... Or is the governor of Rivers in coma that you want an ex-governor to come continue a state project he started?... Clowns everywhere!

And that way abandoned projects will start becoming monumental in the town.?

majekdom2:
I wonder why make this kind of comparison. Rail is a, infrastructure, oil is a natural resource. One reason for diversification is forex.. This is possible via sales of goods and services outside Nigeria. where are the incentives to strengthen the value of Naira??

A robust transport infrastructure and availability of power supply are the two most important ingredients for industrialisation. An industrialised Nigeria is a diversified Nigeria.

Alitair:

And that way abandoned projects will start becoming monumental in the town.?

I'm not sure I understand your point. Who is abandoning a project?... You were calling on an ex-governor to come complete a project he started when he was governor; this is despite the fact that there is currently a governor in the state. Or are you suggesting Wike should step down as governor for Amaechi to take over?