Category: Transportation

  • History, as fast train service takes off

    History, as fast train service takes off

    The Lagos-Ibadan standard gauge rail line takes off today,signalling the return of the good old days of efficient train services, writes ADEYINKA ADERIBIGBE

    oday, history will be made as Minister of Transportation,  Rotimi Amaechi opens the Lagos-Ibadan standard gauge rail line.

    The project is in fulfilment of the Buhari’s administration’s commitment to bequeath to the nation an efficient, safe, reliable and affordable local train system that would compete with others globally.

    Inaugurating the first standard gauge rail line last year, President Muhammadu Buhari spoke of his administration’s commitment to a train system that is “safe, fast and reliable,” pledging that all state capitals would be connected with standard gauge.

    It was not an empty boast. It was the corner-piece of the 25-year strategic masterplan of the Nigerian Railway Corporation (NRC). The Lagos-Ibadan train service is part of the bigger component to connect the Port of Lagos to the fringes of Niger border in Kano.

    The project was awarded to China Civil Engineering Construction Corporation (CCECC) in 2006 for $8.3 billion. When the government could not secure funds for the project, it decided to build the standard gauge line in segments and rehabilitate the narrow gauge line to meet the transportation needs of Nigerians.

    Though only the 187-km long Abuja-Kaduna segment was  delivered last year, it took the government 16 years to do so. Its siting is  strategic because it is the first time Abuja would be connected to the railway network.

    The segment, expected to be completed in December 2014, cost $876 million; it consists of $500 million loan from the Exim Bank of China and the balance from the government.

    Though construction began in February 2011, and tracklaying  two years later, train operation did not begin until last June, while passenger and freight service took off a month later.

    The Lagos-Ibadan segment  was awarded to CCECC for $1.53 billion in 2012.

    The government promised to complete this section by 2018.

    Other segments to which network was broken and on  which the  government is determined to begin work are: Ibadan-Ilorin (200 km), Ilorin-Minna (270 km), Minna-Abuja and Kaduna-Kano (305 km).

     

    Bye, old trains

     

    Until last year, Nigeria depended on the British-built narrow cape gauge rail system, which has a lower design capacity.

    From 11 million passenger traffic in 1964, passenger traffic fell to 1.6 million in 2003, while freight traffic fell from three million tons in 1964 to about 100,000 tons by 2000.

    On assuming office in 2015, Amaechi promised to rewrite the railway transportation history.

    Blaming the aging rolling stock for the drop in the fortunes of the railway, Amaechi said the government would not be satisfied with a train service that goes on an average of 45 km/h, and takes 31 hours to traverse Lagos to Kano.

    Insisting that the government was committed to delivering on a fast-moving and comfortable rail transportation system, Amaechi said having succeeded in the rehabilitation of narrow gauge, attention must be paid to the standard gauge, moreso as economic growth and the urgent needed to decentralise, redistribute traffic and bring relief to the  over-burdened roads made a standard gauge line desirable.

    Being the oldest corporation, NRC, perhaps, has the largest collection of antiquated rolling stocks that have continued its grinding movements on the narrow gauge built by the British colonial government in 1900.

    With its golden era long gone, NRC ran into troubled waters in the twilights of the 20th century, until the turn of the new millennium, when renewed concerted efforts began to bring back the old era and put the railway back on track.

    The railway had remained largely on track due to the ingenuity of local engineers and other members of the workforce who have been improvising and fabricating essential component parts of the locomotive and coaches in order to ensure that the train moves, no matter how sluggish.

    From its high point when it has about 250 coaches and 55 locomotives, NRC could hardly boast of 10 functioning locomotives named after iconic national figures, while aggressive efforts were on to ensure that more coaches were rehabilitated and added to the rolling stock.

    A former NRC managing director who would not want his name mentioned, at a forum, described the trains movement as a miracle. Praising the engineers for this, he said while the government shoped for funds to buy modern rolling stocks, the NRC management was committed to rehabilitating its aging stock to keep the corporation on profitability path.

    A passenger on the Lagos-Kano train service Kareem Abubakar noted that the railway would witness an explosion in patronage, especially on the strategic and hugely successful route, if the government was able to deliver on its standard gauge promise.

    Experience, he said, had shown that even the thrice weekly frequency of train service on the route was grossly inadequate, and that those who ply the roads would switch over to patronise the railway for its safety, affordability and reliability.

    An Offa-based textile trader who uses the shuttle service for his Lagos-Kano trips Alhaja Kadhijat Alebiosu said the standard gauge would boost passenger and freight traffic along the Lagos-Kano-Lagos route. Alhaja Alebiosu said despite the slow pace of the train, she still loved to patronise the railway for its safety, compared to other means of land transportation.

    The NRC said the introduction of standard gauge would rejuvenate the economy.

    Its Managing Director, Fidet Ohkiria, said the movement of goods and persons on modern standard gauge lines would boost the economy.

    “To make Nigeria investment- friendly, and catch up with the rest of the world, the restrictions on the NRC must be removed and our rolling stocks modernised.

    “For the economy to be truly competitive, Nigeria must move away from the narrow gauge to standard gauge lanes,” Okhiria said.

     

    Track Record

     

    CCECC, appointed since 2012 to deliver the Lagos-Ibadan route as well as three other sections on the Lagos-Kano standard gauge lane, was established in June 1979 and has over the years evolved into a global corporation that not only handles railway engineering but also all civil engineering projects with enviable track record.

    Among its other projects, according to Wikipedia, are the 8.6 km double track standard gauge Carmel Tunnels in Haifa, Israel, built in 2009, the 4.6-km Gilon tunnel in Northern Israel in 2014 and the construction of the underground stations of the Tel Aviv light rail constructed in 2014, among other projects, scattered all over the world.

     

    Benefits

     

    A logistics entrepreneur Mr Edeme Kelikume, said Nigeria has the right kind of population to make standard gauge a “hugely successful” venture.

    Kelikume, a railway logistics expert and Chief Executive of Connect Rail Services Limited (CRSL), said: “The standard gauge is the way to go, whether for passenger or freight services, adding that the astronomic cost of living in Nigeria and other associated costs would be addressed, once people can move more cheaply and agro-allied and solid minerals can move faster and more freely from the points of production across the country, to the various markets, including international or export market.”

    According to him, picking world-class contractors to handle the project would ensure that the best is delivered to Nigerians soonest.

    A regular train service passenger said a standard gauge that would connect Lagos with Ibadan, open the area to new vista of life, adding that it would reduce  traffic on the nation’s busiest expressway.

    Apart from promoting a cleaner environment through a reduction in carbon emission by reducing the vehicles on the road, he said the link would promote greater integration, open up the hinterlands, and ensure faster, safer and cheaper means of transportation, thereby removing the dominance of private commuter bus operators on the route.

    Politically, he argued that linking Lagos, the nation’s commercial capital with Southwest’s political capital, would have tremendous impact on the Southwest, the same way that Abuja was connected to Kaduna, the political capital of the core North by the speed train last year.

     

    Conclusion

     

    With an economy in its way out of recession and naira battling to regain its strength, it is debatable whether the government would keep next year’s timeline to deliver on the project.

    Ameachi’s body  language is that he would not condone further delays, but only time will tell how far he can go.

  • Will road fund do the magic?

    Will road fund do the magic?

    Despite the fortune spent on roads over the years, they appear to have been left in poorer condition by successive administrations. This may soon be a thing of the past, with the government’s plan to introduce a road fund, writes ADEYINKA ADERIBIGBE.

    he executive and the legislature are working in tandem to address the road challenge. They are on the same page in removing the bottleneck for safe and motorable roads.

    Before  the National Assembly is a Bill that seeks to establish a Road Fund. The objective is to develop, rehabilitate, reconstruct, maintain and fund the roads, as well as establish a dedicated purse where revenues needed to maintain the roads, irrespective of their classification, would come from.

    The broader objective is to drive sanity through the gamut of the sector by creating a National Road Board.

    For 46 years, the nation has battled with establishing a Federal Roads Authority that would take after its sister-nation, Ghana, which, in 1974, established a Ghana Highways Authority.

    However, while Ghana was able to achieve the feat three years after Nigeria started the search in 1971, the latter had continued to shop for a befitting road map to galvanise its policies on the sector.

    Other laws waiting to be incorporated into the new Bill are the Federal Highways Act 1971, the Federal Road Safety Commission Act of 1988 and the Federal Roads Maintenance Agency Act of 2000.

    Though the opportunities were lost in the 70s and 80s, attempts by the late Majors-General Mamman Kontagora and Abdulkareem Adisa to midwife the Federal Roads Authority (FRA) were not sustained.

    Shorn of the legal instrument, deepening the user’s contribution to road maintenance commenced in January 2004 when the government dismantled toll gates on federal roads as introduced the fuel tax regime.

    The most recent attempt at coming up with a Federal Roads Authority and attendant fund was the National Workshop on Roads Sector Reforms, organised on June 10, 2008, by the Federal Ministry of Transportation, under Mrs. Diezani Allison-Maduekwe, a former minister of that ministry.

    Although the workshop set May 2009 as deadline for the passage of the Federal Roads Authority, the Road Fund Bills and the inauguration of the Road Fund Board, it was unrealistic. It was only in 2010, that the Federal Executive Council approved the resolution and sent an executive bill to the National Assembly.

     

    Implications

     

    While the government hesitated, the entire road network grew worse as maintenance became near impossible due to inadequate allocation.

    The result was that virtually all the three tiers of roads-Trunk A (Federal roads), Trunk B (state roads), and Trunk C (local government roads) became death traps, causing avoidable accidents, deaths and property loss.

    Experts said the transportation sector recorded less than five per cent contribution to the Gross Domestic Product (GDP) because the roads remained the poorest and most-unsafe in the world.

    Bemoaning the debt profile of the sector, put at above N2 trillion, the Speaker of the House of Representatives, Hon. Yakubu Dogara, recently proposed the establishment of an Infrastructure Bond to create new money to finance its losses.

    He said:”I think we should float an infrastructure bond that will capture road infrastructure.”

    For Dogara, the burden of the long years of inaction on the roads is heavy. For every N1 the government fails to spend on road infrastructure, the country loses N5. The loss in man-hour per annum is put at 10 billion hours or N1.0 trillion. These are aside the cost of impairment, trauma, and deaths, resulting from road crashes.

    Creating new avenues for the funding of the massive rehabilitation of old networks and the construction of new ones has become inevitable.

    Early last year, Fashola hinted at the possibility of returning to the toll regime.

    The Nigerian Society of Highway Engineers (NSHE) said funding, which the tolling seeks to address, was only a fraction of the issues contending with sanity and good roads in the sector.

    Needed, according to the HSHE, are a comprehensive road reform package and the delivery of enabling instruments to give the reforms legal backing by the federal law makers.

    Without the agency, the nation, they argued, would lose millions that could have accrued to the National Road Fund.

    The National Roads Fund shall, among others, hold, purchase, acquire and dispose of any property for the purpose of carrying out its functions.

    The Bill further provides that up to three per cent of the total monies accruing to the Fund be used for the management and administration of the Fund. In effect, the cost of running the Fund and other ancillary will be paid for from its accruals.

     

    Sources of funds

     

    According to the fourth clause of the Road Fund Bill, the sources of accruals to the Fund include five per cent of road users’ charge on pump price of petrol and diesel received from petroleum products marketers as required to meet the routine and periodic road maintenance needs, grants and loans to the Road Fund by the Federal, 36 states and the Federal Capital Territory (FCT) Abuja, as well as all the 774 local governments, statutory corporations, any international organisation, private foundations or persons, gifts of land and money.

    The user charge of five per cent on pump price of petrol and diesel could be per buyer. This goes to the marketer for further remittance to the Fund.

    With the cost of fixing the roads put at N3 trillion by the Council for the Regulation of Engineering in Nigeria (COREN), compared to the Ministry of Works’ allocated N520 billion this year, the ministry would obviously need to think out of the box.

    COREN President Mr Kasim Ali said a new way of funding was needed because the old format was obsolete. He supported the repeal of the Federal Roads Maintenance Agency Act 2002, Federal Roads Authority Bill 2016 and the National Roads Funds Establishment Bill.

    Jacob Akindele, a Special Adviser (Road Administration) to a former  Governor of Ogun State, from 2003-2011), said a Federal Roads Authority remained the best legacy any minister could bequeath to the nation.

    Akindele, a visiting member of the Guardian Editorial Board, in a two-part seminal paper, blamed inappropriate institutional and legal frameworks, unpredictable and inadequate funding and a dire lack of maintenance culture for the poor state of roads.

    Chairman, Road Transportation Committee of the Nigerian Academy of Engineers (NAE), Dr Tajudeen Bawa-Allah, urged the National Assembly to revisit all recommendations since 1971, aimed at repositioning the transportation and road sectors.

    He expressed fears that the proposed law may lack the requisite bite because the foundation – the National Transportation Policy – has been neglected.

    Bawa-Allah  said a national policy by the Federal Government would contain the holistic nature of the roads as well as the fund to for their regular maintenance.

    Indicating that these were part of the recommendations of the Road Vision 2000 Committee of which he was a member, Bawa-Allah urged the Federal Ministry of Works to come up with a map of road networks in the country, indicating via colours which roads are for total rehabilitation, which ones for palliative touching and new ones to be built.

    “Let the Ministry periodically publish this in major newspapers- maybe thrice a year (January, June and December), to enable Nigerians be abreast of the pace of the government in road rehabilitation projects across the country.

    “Government in coming up with fresh demands to fund our road, needs must also  show us periodically how they are spending our money. They should come up with colourised map of all road networks in Nigeria and periodically update Nigerians where they are working every quarter,” Bawa-Allah said.

    Throwing his weight behind the Road Fund and other laws cooking at the National Assembly, Dr Joseph Olawale Shojobi said the new Bill if assented to would bring sanity to the road sector. He said a situation where all tiers of government (Federal, states and local governments) amounting to 812 different authorities supervise  roads, had made the sector ungovernable, and one of the most disorganised in the world.

     

    Conclusion

     

    “The Nigeria Roads Board will aggregate all roads and abolish the trunking system as a new mode of classification would hold sway across the country.

    “The Board will have branches in all the states and these would look over the roads in their domain and a new classification of most important to less important would be introduced. This new classification will also influence the mode of allocation of funds for their maintenance,” Shojobi said.

    The regulation of the sector, and the formulation of various policies to drive it, he said, will also improve access to funding. He listed other access outside budgetary allocation from the three tiers to include tolls, fuel tax, levies and charges from vehicle-related activities such as insurance, vehicle and driver licence, mandatory Ministry of Transportation vehicle testing.

    He said his findings showed that “contrary to the Federal Government’s assumptions, the tolls collected from toll gates between 2001 and 2002 were so huge that it could have gone a long way in maintaining roads across the country. He added that the fuel tax introduced by the government failed abysmally, noting that if the tax was depoliticised, Nigerians might have been able to see the impact of the new agency in more profound ways as there would have been more than enough over the years to handle the growing needs of national assets.

    “There is the absolute need to set up the National Road Board and merge all other agencies in charge of road into it. The Board should be domiciled in the Ministry of Transportation, and work as a quasi-independent agency. They should have a dedicated funding stream, mostly coming from taxes on Premium Motor Spirit (Petrol) and tolls on federal or other dedicated roads. This money should be the sole means of operating the agency, maintaining the road and building more roads or bridges.

    “This has to happen in the same content as we build up our rail system. Rail system is much needed in a country like Nigeria to move people, goods, and provide an alternative to road usage.

    “The dedicated funds can be expanded and its coverage increased as there emerges new opportunities, so there will always be new monies created to absorb the ever growing needs of the state of our roads,” Shojobi added.

    Shojobi, an engineer and road consultant, said the Federal Roads Safety Corps (FRSC) should be collapsed and function as a department under the National Road Board to harmonise road transportation and vehicular activities across the country.

    “FRSC should be national in outlook and should engage more in enlightenment, road use education and intelligent transportation surveillance in order to make our roads truly safe,” he said.

  • Kia Stinger gets EyesOn Design award

    Kia Stinger gets EyesOn Design award

    Kia Motors’ all-new 2018 Stinger fastback sedan has been honoured with an EyesOn Design award for Production Car Design Excellence at the North American International Auto Show (NAIAS) in Detroit. At an event dominated by introductions from American auto companies, Kia’s stinger stole the spotlight.
    “We’ve made a lot of great cars and I’m proud of all of them, but the Stinger is something special,” said Peter Schreyer, Kia Motors’ chief design officer.
    The EyesOn Design awards honour the best production and concept vehicles making their worldwide auto show debut at the NAIAS. This year’s categories include concept car; production car; concept truck; production truck; innovative use of colour, graphics and materials; interior design; user experience award and designer catalyst.
    Brimming with power, passion and performance, the Stinger is a sport sedan dedicated to the thrill of driving while cosseting occupants in luxury. From its sleek front clip through its svelte flanks, and up to its powerful haunches, the Stinger exudes a muscular confidence. The Stinger’s stance and visual balance are designed to lend the car an air of elegance and athleticism, rather than boy-racer aggression. Inside is a purposeful cabin that is luxurious and exquisitely crafted. A strong horizontal plane across the dash presents the driver with a thick, leather-wrapped steering wheel. Front and centre of the driver is a single instrument binnacle with a combination of analogue and digital instrumentation.
    It will go on sale later in the year.

  • Following distance and lane management problems

    Following distance and lane management problems

    Research has shown that a lot of road traffic crashes were caused by improper following distance (tailgating) and lane indiscipline.
    On a bright day (good weather), the two-second rule should be applied as the following distance between one vehicle and the other. However, on a raining day (bad weather), the four-second rule should be applied.
    The distance between you and the vehicle ahead of you should depend on the following factors:
    •The weather: The the more unclear the weather, the more the following distance allowed.
    •The volume or flow of traffic: If the traffic is heavy (go slow), the following distance can be narrowed but to a safe level.
    •Speed: The more your speed, the more should be the following distance considering the braking and stopping distance factors. This rule also applies to convoy drivers but the intrusion avoidance technique should be cautiously employed in the process.
    •Visual perception: The poorer your visual acuity, the more should be the following distance.
    •Age: The older you are in age, the less your visual perception and reaction time and the more should be your following distance.
    •Security mission convoy: The following distance depends on the nature of the mission and the traffic environment.
    •Road surface: The more slippery the road surface, the more the following distance to be allowed.
    Most multiple accidents were caused by improper following distance. Tailgating is also responsible for several solo accidents in a bid to avoid rear end collusion. It is sad to know that over 70 percent of the drivers in Nigeria, including drivers of own vehicles, are guilty of improper following distance (tailgating).
    Lane indiscipline is the twin problem of must drivers in Nigeria. Drivers are expected to drive in the middle of their lanes without moving too close to the vehicle or lane on the right or left (correct lateral spacing).
    Whether the lanes are marked (with white lines) or not, every good driver most know and keep to his or her lane at all times through frontal and peripheral visual perception. When changing lane, keep to the new lane as well. It is wrong to move too close or infringe on another driver’s lane (unless when changing lane). Any change of lane or movement which prompts other driver to brake or shifts suddenly for you is wrong and must be avoided for the sake of safety.
    Lane weaving is another allied dangerous habit of some drivers due to impatience. This is a case where drivers move in and out of lanes too frequently (incessant and hasty change of lanes). This dangerous act confuses other drivers, riders or pedestrians and oftentimes, cause them to apply brake abruptly to prevent a collision with the lane weaving driver. This practice has caused several collisions and fatalities.
    In a nutshell, drivers must be safety-conscious and avoid tailgating, lane indiscipline and lane weaving to further reduce the rate of road traffic crashes in the country.

  • Ford, Honda recall 1.5 million vehicles

    Ford, Honda recall 1.5 million vehicles

    Two automakers are adding more than one million vehicles to the growing Takata air bag inflator recall.
    Honda Motor Corporation is recalling 772,000 additional Honda and Acura vehicles in the United States (US) for defective front passenger seat air bag inflators made by Japanese supplier Takata Corporation. Ford is recalling more than 816,000 vehicles in North America.
    Honda’s vehicles, announced in a recall last week, are part of an expanded recall of 1.29 million vehicles, including some recalled earlier. No recalls related to the U.S. one are being announced in other regions yet, Tokyo-based Honda said.
    Takata is at the centre of a massive recall of inflators that can explode in a crash, injuring people by sending metal shrapnel into the passenger compartments.
    Among the models recalled are the 2005-2006 Acura MDX, 2005-2012 Acura RL, 2008-2012 Honda Accord, 2006-2011 Honda Civic, 2007-2012 Honda Fit and 2010-2012 Honda Insight.
    The recall also covers the 2009-2012 Acura TSX, 2011-2012 Acura TSX Wagon, 2010-2012 Acura ZDX, 2010-2012 Honda Crosstour, 2005-2011 Honda CR-V, 2005-2011 Honda Element, 2012 Honda FCX Clarity, 2005-2012 Honda Pilot and 2006-2012 Honda Ridgeline.
    Ford’s latest call back covers the 2005-2009 and 2012 Mustang and the 2006-2009 and 2012 Ford Fusion, Lincoln Zephyr and Lincoln MKZ. Also included are the 2007-2009 Ford Ranger and Edge, the 2007-2009 Lincoln MKX, the 2006-2009 Mercury Milan and the 2005 and 2006 Ford GT.
    Ford said it’s not aware of any injuries involving this batch of vehicles.
    Takata uses the chemical ammonium nitrate to cause a small explosion designed to inflate the air bags in a crash. As many as 16 people have been killed worldwide and about 180 have been injured.
    More than 100 million vehicles involving 17 automakers have been recalled worldwide, including 69 million in the U.S. alone, underscoring the scale of the crisis. Because of the scope of the recalls, the replacements are going to take years.

  • Fiat Chrysler chief denies emissions cheating

    Fiat Chrysler chief denies emissions cheating

    Sergio Marchionne has rejected accusations of emissions cheating in the United States a day after officials reached a settlement with Volkswagen.
    The Environmental Protection Agency (EPA) said Fiat Chrysler used illegal software.
    Fiat Chrysler Chairman Sergio Marchionne said his company has done nothing illegal and that it was not involved in diesel emissions testing fraud.
    Marchionne said US government accusations of cheating against the Italian-American automaker had been “blown out of proportion.”
    He said it would be “sheer speculation” to predict how the incoming Trump administration would handle the matter.
    Fiat Chrysler shares plummeted more than 16 percent in European trading after the EPA issued a notice of violation for alleged violations of the Clean Air Act. It said the company had secretly installed software in diesel engines in 2014 to 2016 model year vehicles to circumvent emissions testing.
    The charges cover about 104,000 Jeep Grand Cherokee and Ram 1500 trucks, all with 3-liter diesel engines. The EPA said it was working in coordination with the California Air Resources Board (CARB), which also took similar action.
    “Failing to disclose software that affects emissions in a vehicle’s engine is a serious violation of the law, which can result in harmful pollution in the air we breathe,” said Cynthia Giles, EPA assistant administrator for enforcement and compliance.
    Cheating software works by detecting when a vehicle is undergoing laboratory testing. It puts the engine into a low-emissions state that produces unrealistically low pollution levels compared to those emitted during normal driving.
    The accusation comes one day after German carmaker Volkswagen admitted guilt and agreed to pay $4.3 billion in criminal and civil settlements to the US government over a similar scheme.

  • ‘Ford’ll pay suppliers after cancelling Mexico plant’

    ‘Ford’ll pay suppliers after cancelling Mexico plant’

    Ford Motor Corporation is working on a plan to compensate parts makers that were preparing to supply the plant the company cancelled last week, and will return the land to the government of Mexico, according to an executive.
    Joe Hinrichs, Ford’s president of the Americas, told reporters that the company will eventually disclose the construction cost of the aborted project.
    “It’s not an easy decision to cancel a plant that you’ve already started,” Hinrichs said after a speech at Automotive News World Congress in Detroit. “We don’t take it lightly. It was a big decision to build the plant in the first place and it was a big decision to cancel it,” he said.
    Ford told Mexico’s government of its intent to scrap the $1.6 billion small-car factory on the morning of January 3, just before making the decision public. The Dearborn, Michigan-based company plans to build Focus compacts at its existing plant in Hermosillo, Mexico. Executives made the decision when they saw the latest sales projections for the car were lower than anticipated, Hinrichs said. “We stayed true to our commitment to the Focus programme to make it in Mexico.”
    Ford has been attempting to make peace with American-President elect Trump after the president-elect criticised the company during rallies and debates that preceded the November election. The second-largest U.S. automaker said when it cancelled the factory last week that it will add 700 jobs to a plant in Flat Rock, Michigan. Trump tweeted his praise and turned his ire toward General Motors Corporation and Toyota Motor Corporation for building cars in south of the border.
    “Ford just announced that they stopped plans for a $1 billion plant in Mexico and they’re going to be moving into Michigan and expanding, very substantially, an existing plant,” Trump said last Wednesday during his first press conference since the election.
    “I appreciate that from Ford. I hope that General Motors will be following, and I think they will be,” he said.
    GM spokesman Tony Cervone declined to discuss the company’s manufacturing investment plans. “We look forward to engaging the new administration in conversation,” he said.
    Ford has said it’s saving $500 million by moving Focus production to its existing Mexican plant from the now-abandoned site in San Luis Potosi.

  • Still a wink in the dark

    Still a wink in the dark

    The transportation sector performed below average in 2016 despite high public expectations, writes ADEYINKA ADERIBIGBE

    How did the transportation sector fare this year? Whereas for many Nigerians, the verdict is a grim below par performance, experts, however, say the sector had an average showing.

    The expectation of a speedy transformation had not been misplaced. The change mantra upon which the administration rode to power had promised unprecedented transformation and the merging of the Ministry of Aviation with the Transportation Ministry had promised a regime of “business unusual”.

    That was why they felt that with N202 billion out of a total allocation of N215, 797 billion in this year’s budget devoted to capital expenditure, the transportation sector is set for a rejigging.

    For almost half the year, the sector was in the eye of the storm, caught in a feud between the executive and the legislature over allegations of “budget padding” and the questionable removal of the Lagos-Calabar Coastal railway project, a cardinal programme of the government from the 2016 budget.

     

    A rusty past

     

    A country with 108,000 km of surfaced roads as at 1990, Nigeria with the largest road network in West Africa and the second largest, south of the Sahara, the narrative remained at best that of decaying infrastructure. The roads which are the main means of transportation since independence are poorly maintained and are often the cause of the country’s high rate of fatal accidents, which has continued to attract global concern.

    A CIA World Factbook (1999), citing a 1998 estimate, put the total kilometres of paved federal roads at 60,068 km (including 1,194 km of expressways), out of 194,394 km, leaving a total of 134,326 km of unpaved roads.

    In 2004, the government began a massive patching of the 32,000-kilometre federal road network through the Federal Roads Maintenance Agency (FERMA).

    Between then and now however, most of the paved roads especially in the heavy rainfall belt of the south have become impassable as they have lost their asphalt surface and have reverted to gravel roads.

    Same is the story of the four strategic trans-African Highway network that is meant to connect the country with her neighbours via road system. These are the Trans-Saharan highway from Kano to Algeria, which completion is being hampered by border security issues, the Trans-Sahelian highway to Dakar, which is substantially completed, the Trans-West African Caostal highway which connects seven Economic Community of West African States (ECOWAS) westwards to Benin, Togo, Ghana and Cote d’Ivoire, with feeder link to Burkina Faso and Mali, Liberia and Sierra Leone and the Lagos-Mombasa highway which would provide highway link to Cameroon, but its continuation across DR Congo to East Africa is substantially lacking as are other highways from Cameroon to Central and Southern Africa.

    However, while the trans-African highways are a long shot, the goal post of which may continue to be shifted, the question is how has the government fared in rehabilitating the nation’s road network, the mainstay of the nation’s transportation?

    A road transportation expert Dr Tajudeen Kayode Bawa-Allah conceded that the rate of work on all federal roads had been abysmal in recent past. However, the story, he said, have changed with unprecedented work going on simultaneously in the six geo-political zones of the country. Bawa-Allah, a Fellow of the Nigerian Academy of Engineering (NAE) and the Chairman of the Academy’s Road and Transportation Work Group said the government is right in embarking on the massive investment on road development at a time of recession as doing such remained the best option.

    He said: “Motorists would be delightfully happy with the state of our roads in 2017 as the government has done so much in rehabilitating so many of those roads.”

    He said the renewed synergy between the Ministry of Transportation and that of Power, Works and Housing would bequeath to Nigeria world class infrastructure that would support the sector in the years ahead.

    Scoring the budget performance Bawa-Allah said, the sector achieved about 50 percent this year, and by 2017, will move to about 70 percent and if the pace continues, move to about 90 percent by 2019.

     

    Rail Modernisation

     

    A critical segment of the transformation agenda of the government in land transportation is the reactivation and modernisation strategies of the railway.

    To ensure that it bequeath to the country a modern railway system, the government is trying to privatise the Nigerian Railway Corporation. Similarly, the government is granting concessions to private port operators as part of its partial port privatisation strategy to return the port to the era of profitability to improve the quality of port facilities and operations.

    In the year, the government invested a lot of time ensuring the paper work for the privatisation of the railway system (which further consolidates the abrogation and amendment of the Nigerian Railway Corporation (NRC) Act 1954). During the year, the government perfected plans to cede the two narrow gauges owned by the NRC to General Electric (GE), while the new standard gauges being proposed for the country would be concessioned to CCECC.

    The envisaged rail system modernisation, informed the allocation of N213.14 bn of the N262 bn earmarked for the Transportation Ministry in 2017 as counterpart funding for the Lagos-Kano, Calabar-Lagos, Ajaokuta-Itakpe-Warri, and the Kaduna-Abuja railway projects.

    “I must admit the transformation we all envisaged took longer than expected, but I am optimistic that these projects will commence in 2017 for all to see,” said President Muhammadu Buhari during the budget presentation.

    Founder of Safety Without Borders Mr Patrick Adenusi said the railway remained the catalyst for the nation’s economic development. He said while the government must be supported in its drive to encourage private investor’s participation, efforts must be put in place to ensure that only investors with proven track record are partnered with to modernise the sector.

    The railway being a major sub-sect of land transportation must be carefully handled. The passenger as well as cargo trains are very viable and Nigeria has the population to ensure the profitability of the sector on a sustainable basis.

    “A cargo train which can pull as much as 300 units of 40 feet containers means that 300 trailers could be taken off the roads at once. These not only decongest the roads, it prolongs its lifespan, reduces carbon emission, improves the life of the vehicles and assures the safety of the cargoes.”

    He said the privatisation should engender the creation of more train routes in order to decongest the roads. “Let government establish more passenger train networks. There should be Lagos-Benin, Lagos-Ibadan, Benin-Onitsha, Enugu-Calabar. People can live in Benin and work in Lagos, if they can make the distance in two-and-half hours and save themselves the agony of spending same hours in Lagos traffic snarl before they get home.”

    Bawa ‘Allah and Adenusi agreed that while the land transportation sector had witnessed some growth, same cannot be said of aviation, where most operators are facing the most challenging times.

    Most foreign operators have left Nigeria for neighbouring countries due to a combination of a stringent foreign exchange policy, scarcity of aviation fuel and a massive drop in passenger traffic. These experts said are compounded by deteriorating facilities at many of the airports across the country, while some of the local operators have continued to operate as if they are above the law.

    On the maritime sector, the government has continued to play major roles in regulating the maritime transportation sector and ensuring that the waterways are secured and dredged to make it more navigable by local and international operators.

    The government, experts however, concurred need to make the sector more attractive to operators in the coming year.

    Overall, Adenusi gave the sector a 45 percent performance in the outgoing year, projecting a marginal growth to 75 percent by next year if government sustains its policies and stimulates the involvement of private sector in all the modes of transportation.

     

    The gains

     

    Experts opined that never in the history of the country has the transportation sector recorded such attention it got from the government as it got in the outgoing year.

    From sustaining the gains of its predecessor on the railway transformation agenda, the government moved towards consolidating the modernisation agenda by reinvigorating the 25 year railway development policy. This policy not only sustains the rehabilitation of the narrow gauge, but embarks on modernisation of the rail system by standard gauge.

    On June 15, this year, the Senate passed the new NRC Bill, setting the pace for the abrogation of the draconian NRC Act and opening the window of opportunity for Direct Foreign Investment (DFI) in the railway sector.

    Also in the year, GE announced its readiness to invest about $2 billion in the railway sector, while the Minister of Transportation Mr Rotimi Amaechi disclosed that government had concessioned the nation’s narrow gauge rail networks to GE.

    The government also took delivery of the Abuja-Kaduna standard gauge in July, and concessioned the modern network as well as 16 others, including the Lagos-Calabar coastal rail line to a Chinese consortium- CCECC.

    Amaechi said the government desirous of making the railway the primary mass transit option for the nation, adding that government’s strategies is to fully integrate multi-modal transit system in the country.

    The Senate recently held a public hearing on the National Transportation Commission (NTC), to pave way for the establishment of a sector regulator, which pundits say is badly needed in the sector.

    When it is fully realised, the NTC would regulate, direct and formulate uniform transportation policies across the country that must be complied with by all arms of the government – federal, states or the 774 local government areas of the country. The Bill is expected to be passed by the Senate by the first quarter of 2017.

    The Lagos-Calabar Coastal rail line is expected to be the jewel on the cap of the sector for 2017.

    If this, along with other initiatives, strategies and policies of the government are adhered to the transportation sector may well be on its way to regaining its place as the main driver of the economy.

     

    Conclusion

     

    For Adenusi, to get it right next year, the government need to revisit the previous policies and check what is right and give it a new touch.

    “We need to press the reset button, look back at the 60 and 70s when Nigeria was well run and take what was functioning in our system at that time and give it a 21st century life. This is the way to go if we want to get out of this cyclical move that yields no result and give the transport sector the best we can offer,” Adenusi said.

  • A bill of controversy

    A bill of controversy

    What form should the National Transportation Commission (NTC) take? This was the issue discussed by stakeholders at a public hearing on the NTC Bill in Abuja. ADEYINKA ADERIBIGBE reports

    hen the Bill for the establishment of the National Transportation Commission (NTC) was sent to the National Assembly last month, it was assumed it would  fly without a fuss.

    That was why at a public hearing last Tuesday, the Minister for Power, Works and Housing, Mr Babatunde Fashola, said the question was not whether the commission is desirable, but why it hasn’t been established.

    It wasn’t only Fashola that felt the nation is being  short-changed as  the  sector has become an all-comers’ affair. Such development, the minister reasoned, is responsible for the sector’s poor contribution  to the  Gross Domestic Product (GDP).

    Overtime, the Minister for Transportation, Rotimi Amaechi, said the sector contributed about 1.4  per cent, adding that this  must be corrected, because it must be  a major  driver of the government’s economic diversification agenda.

    The public hearing was regarded as a right step by the Senate to tap from the body of knowledge available to transportation and logistics experts, stakeholders and other operators on  matters concerning the commission.

    The Senate Committee Chairman on Land Transport, Gbenga Ashafa, who chaired the event,  said: “In order to enrich the quality and content of this bill, there is a need to organise a Public Hearing to borrow from the body of knowledge of sector professionals like you all.”

    Ashafa spoke the same way when the Bill was  presented to the Senate last month. Then, he told The Nation the Senate would consult widely with experts and stakeholders and come out with a commission that would  aid the sector.

    He agreed that a regulator is necessary to sanitise the sector and make it more profitable.

    But that is if all stakeholders are on the same page. Right now, there are discordant voices.

    Government’s position that the Nigerian Shippers Council (NSC) be upgraded to the status of National Transportation Commission (NTC) and an industry regulator at the public hearing unsettled many.

    Amaechi said the Ministry resolved that the NSC, which has been performing regulatory responsibilities in the maritime industry, be upgraded to regulate the entire transportation sector.

    This will address the issue of duplicating responsibilities through the creation of another agency, but it threw up other issues, such as the proprietary or otherwise of such drastic move in the sector.

    Nigerian Ports Authority (NPA),  Managing Director Ms. Hadiza Bala Usman fired the first salvo when she demanded the creation of an independent regulator, while NSC remains.

    Buttressing her point, Ms. Usman said: “In designing a regulator, it is absolutely necessary to separate technical/operational responsibilities (which in the case of NPA and NIWA, as vested by their enabling laws), from matters of competition, the subject of the new regulatory regime.

    “Failure to make a distinction between these forms of regulation has the inherent risk of “Agency-capture” and the potential of conflict of interest between the two forms of regulation,” she said.

    Though Usman’s position was counter to the mainstream as expressed by the Minister, her view to have both agencies separated however resonated with several other experts.

     

    NSC’s function

     

    Besides being established to promote the interest of shippers, and the establishment of shippers associations across the country, the Shippers Council law authorises in Section 3, that it should advise the government of the federation, through the Minister, on matters relating to the structure of freight rate, availability and adequacy of shipping space, frequency of sailings, terms of shipment, class and quality of vessels, port charges and facilities and other related matters;  negotiate and enter into agreements with Conference Lines and non-Conference Lines, ship-owners, the Nigerian Ports Authority and any other bodies on matters affecting the interests of shippers;  consider the problems faced by shippers with regards to coastal transport, inland waterways transport and matters relating generally to the transportation of goods by water and advise government on possible solutions and to provide a forum for the protection of the interest of shippers on matters affecting the shipment of imports and exports to and from Nigeria among others.

    Shedding more light, Executive Secretary/CEO of Safety Without Borders (SWB) Patrick Adenusi said being a body set up to protect the interest of Nigeria,  especially at a time when the nation has no national carrier, the NSC is not in the best position to advance the cause of the sector and become a regulator.

    “I don’t think merging NSC or adapting it to the status of the NTC is best for the industry.” Questioning the rationale for the establishment of any other agency, Adenusi said in an era of recession when the expenses of government is increasing, establishing another agency would only serve to bloat government’s expenditure.

    “What we would end up having is to have some Nigerians that would not be productive but collect salaries and increasing government’s burden.”

    Rather than setting up another agency, Adenusi canvassed that the Ministry should play its role as the policy formulator and implementer.

    There’s nothing the NTC wanted to do that the Ministry couldn’t achieve. “Supposing that the federal got away with the NTC, what that means is that similar agency must be created by the states. In a situation where many states are owing upwards of a year salary, how many can sustain another agency?”

     

    Beautiful dream

     

    Adenusi wasn’t the only dissenting voice against the creation of a Transportation Commission. Another Transportation expert, Dr Tajudeen Bawa’ Allah, said government must be careful and “not allow bureaucracy to kill its good intention for the industry.

    Bawa’Allah who was the first dean School of Transportation Studies of the Lagos State University, said, while the dichotomy being sought by the government, which seeks to separate the executing body, which is the policy formulating body is welcome, efforts must be made to ensure that bureaucracy does not kill the dream.

    The don who faults the merging or upgrading of the NSC to NTC said the mandate or functions of the former, is at variance with the proposed duties and functions of a regulator which is the latter.

    He said though the Ministry of Sports have a beautiful dream establishing the National Sports Commission, the latter had been moribund since its establishment.

    Rather than “engaging in a cut and paste that adapting the NSC would amount to, one would advise that the government revisit the report of the National Transportation Coordinating Committee (NTCC), headed by Prof Adeniyi, and draw from it,” Bawa’Allah said, adding, “We are not short of ideas, we are just short of putting all these ideas to productive use. If we don’t, the same bureaucracy that killed the National Sports Commission would kill the National Transportation Commission”.

    Bawa’Allah who served in the NTCC, said rather than rushing into creating the Commission, the government need to first come up with a policy framework to guide the agency in its operation. “There is nothing on ground for the NTC to work on. Let’s start by drawing up a national policy on transportation. The transportation industry has no policy and that is the foundation. I would urge the government to revisit the NTCC report and several of such reports since 1960.”

    Another expert who preferred not to be mentioned said transportation policy is the foundation upon which any implementation on the sector would rest.

    “It is the policy that would draw up the functions of the Federal Ministry of Transportation and those of the 36 states and Abuja, as well as that of other ministries or agencies such as Aviation, Works, among others.”

    Another logistics expert Edeme Kelikume, however, urged that the NTC should be allowed to live. He said the NTC would pave way for the deregulation of the transportation sector. “The bill when passed would be a plus to the government,” he said.

    Contrary to scepticism that NTC could just be a drain pipe, Kelikume said the commission would emerge as, “a value-adding agency. “If the NCC could become a major net contributor to the nation’s GDP, one could see the NTC achieving same for the transportation sector,” he added.

    Kelikume said the NTC would unlock the sector, deregulate its operations and draw fresh funds into government’s coffers.

  • Unlocking rail potential in Nigeria

    Unlocking rail potential in Nigeria

    At an International conference in Lagos, last week, and a four-day training session that followed, global experts said Nigeria was on the way to becoming Africa’s biggest train hub and the new deal for rail investors, writes Correspondent ADEYINKA ADERIBIGBE.

    HOW can the rail system play a big role in the economy?

    There are challenges that nmust be fixed. They are poor gove- rnment funding, ageing rolling stocks, (locomotives and coaches), ageing workforce with requisite technical competence and rotten rail infrastructure.

    These were part of the communique at the week-long international conference on the nation’s railway that took place last week in Lagos at the first International Rail Conference, with the theme: Nigeria Railway Industry: Moving from 19th to 21st Century; challenges and opportunities.

     

    The beginning

     

    Built in the 1900s under the British colonial government, the 3,505 kms of narrow gauge rail network built by the Nigerian Railway Corporation (NRC) was constructed within 66 years (i.e between 1898 -1964).

    Unfortunately, while other countries made the construction of new rail tracks a priority, such was  stuck in Nigeria until 2006, when the construction of new standard gauge to link three locations- Ajaokuta, Kogi State/Aladja and Delta State began.

    The railway which, at its operational peak in the 80s, the Minister of Transportation Mr Rotimi Amaechi said, accounted for 12 million passengers and five million metric tons of cargo freights annually, dropped drastically and declared bankruptcy in 1986, as a result of “continuous government divestment, poor/inadequate funding and policy instability.”

    Specifically, freight volumes declined from five million tons in the 60s to 15,000 tons (equivalent of 5 trucks per day), while over the same period, passenger traffic dropped to 500,000 per year, equivalent of about 25 buses per day.

    The near absence of a viable rail system means Nigeria depended almost entirely on buses and trailers for passengers and cargoe freight.

    Contrary to global practices whereby rail has been sustained for its comparative afforable effectiveness in the distribution of goods and persons faster and safer, Nigeria continued to record massive loss of lives and property.

    By 2012 however, government came up with a 25-year railway master plan that is anchored on three pillars – system transition (rehabilitation), system modernisation and system stabilisation.

    Amaechi, who was represented by the Director of Rail Transportation Services in the Ministry of Transportation, Engr. Mohammed Babakobi, said government was determined to liberalise the sector.

    For a government concerned about diversifying the economy, a vibrant railway cannot but become the jewel.

    That was why Amaechi said government has remained commited to the blueprint, which has seen the rehabilitation of all its narrow gauage network and other rolling stock, and its commitment to the quick completion of the modernisation agenda, that saw the delivery of the first standard gauge rail line in the country in June.

    “The 25-year development plan remains the major policy driver, the overall objective is to create a modern, safe and affordable mass transit system that would be comparable with global standards,” Amaechi said.

    When all of these catalyse, government, Amaechi added, intends to increase the overall GDP contribution of the transportation sector from 1.4% to two digits, even as it hopes to create 2.5 million new direct and indirect jobs across the country.

     

    The future

     

    For Biodun Otunola, the Managing Director of Planet Projects, the organiser of the conference, the Nigerian railway could actually do more. For him, the modernisation agenda could be self financed if the right models are applied.

    This, he said, is the way to go because the over 70 per cent of perishable goods produced in the North need to be connected with the South where over 85% of all manufactured goods are produced, moreso as all ports are located in the coastline of the south.

    Harping of the rail as the future of public transportation, he said the 1,124 km of rail network linking two of the nation’s huge economy, Lagos and Kano, could be further exploited and suttle reduced to less than 24 hours. “Not only is the passenger demand huge, the cargo freight service is enormous and the land value capture along the corridor, which could see the creation of new cities and industrial zones enormous.”

    Same, Otunola said, can be created on the 1,657 km long Eastern line (Port Harcourt- Maiduguri), which currently takes 32 hours to connect by road, which could be shortened with a high speed rail service.

    Using the Australian example as a case study, the Planet Project boss said, the 917 km high speed rail link between Sydney and Melbourne, where 46% of Australians live and both of which suffers congestion and unaffordable housing costs. The rail development, he said is being planned to pay itself through appropriate land value capture, where eight sustainable cities are being planned along the route. The plan according to him is to sell $900 million worth of rural land for $140 billion.

     

    Opportunities

     

    The huge opportunities in the rail system, Otunola said, ranges from rail construction, rail operation and maintenance, freight and logistics support, financing and construction of real estate development, ticketing, advertisements and promotion.

    With the right population estimated to be close to 200 million, and the Federal Government  commitment to spend over $15 million coupled with various railway projects springing up across several states in the next few years, the Nigerian railway industry is worth looking into for huge investment returns by global investors.

    He said the conference also aim at ensuring that Nigerian professionals: engineers, lawyers, insurers, bankers, architects, builders, property managers and developers become engaged in making the industry viable.

    He said with investments worth over $100 billion, Nigeria rail system is profitable and the huge demand for high speed rail service would make the return on investment attractive for local or global risk taker.

    Mr Fidet Okhiria, Managing Director of the Nigerian Railway Corporation said the Corporation is poised to modernising rail services in the country. Okhiria, who was represented by a Director in the Corporation Mr Lateef Amodu praised the Federal Government’s commitment for the NRC.

    While admiting that there may not be a one answer fix all to optimising the nation’s railway systems, the Managing Director of GSTC and International Association of Public Transport (UITP) light rail consultant, Mr Gradimir Stefanovic, said the economy may remain comatose if government does not fix the public transportation.

    The Head Consulting of Transport for London, Mr Michael Flynn, who x-rayed railway and economic development around the world, said Nigeria could avail itself of the various funding models across the world. Flynn whose organisation runs the largest urban rail operator in the world, moving over 1.4billion passengers per annum said the entire value chain of the rail system needed to be overalled to create new avenues to attract new investible funds and generate new sources of wealth creation.

    He said additional revenue in rail finacing could be generated from property  development, retail, warehousing, advertising and sponsorship/naming rights among others.

    UITP Training Director Mr Kaan Yildizgoz, picking examples from across the world in addressing funding of rail systems said government could generate funds from operators revenue; which is generated from competitive fare policy, earmarked taxes/charges and levies, and innovative electro-bobility.

    Other area that could generate fresh funds are taxes of private car users, fuel taxes, polluter-pay principle (which taxes anyone who uses gasoline cars), congestion charges, employer’ levy, as practised in France where any employer with more than nine employees pay two per cent of their total wages to the state as well as the joint land transit development as practised in Copenhagen, Denmark, where property tax were used in rail development.

     

    The Ogun Lite

    The conference became the right venue for the Ogun State Governor Senator Ibikunle Amosun to market the light rail project his government is proposing.

    Scheduled to be delivered in the first quarter of 2019, the pilot; Abeokuta-Sagamu-and Ogere-Berger a 100 km line, tagged AS line would take off in January 2017. He said the government has assessed a $650 million grant to fund the project.

    He unveiled an elaborate system that would see six lines developed in the state; these are, the JB line: Agbara-Berger (57 km), Ogere-Sagamu-Berger (81km), IJ line; Ijebu-Ode-Sagamu-Berger (81km), AI line, Ijoko-Ifo-Abeokuta (44km),and IJ line: Ijoko-Sagamu-Ijebu-Odde (85km).

    “With a high speed rail system, Ogun State would not only come to its own as the nation’s industrial capital, it would emerge as the transportation hub of not only the Southwest, but indeed the ECOWAS sub-region,” he said.

     

    Conclusion

    Amaechi and Amosun said the answer to a modern, reliable, efficient and affordable high speed rail is about professionalising the railway industry.

    Amaechi said the government would be open to proposals on how to drive the railway industry along global standards, even as he urge that the world look the way of Nigeria in the development of the sector.

    According to the Minister, an efficient rail system would decongest the roads, open new rural-urban economic frontiers, create employment opportunities, catalyse transit oriented development, reduce global warming by at least 30 per cent, reduce average congestion cost per traveller, and increase land value chain around rail system area.