Tag: rail

  • N1trn rail contracts: Contractors to refund N2.5b

    The Hon. Ehiozuwa Agbonayinma-headed House of Representatives adhoc committee investigating the award and execution of rail contracts was yesterday told that six contractors involved in the over N1 trillion Rail Contracts are to refund N2.5 billion to the coffers of the Federal Government.

    The contractors who participated in the railway construction and rehabilitation contracts are to make the  refunds for excess payments made to the contractors by the Nigeria Railway Corporation (NRC).

    Officials from the Office of the Auditor- General of the Federation who were at the continued hearing of the panel investigating the rail contracts awards at the National Assembly said Audit Queries on the contracts were unanswered.

    Since the beginning of the investigations in October last year, the panel met with former Chairmen of the Board of the NRC and other stakeholders in the course of the investigative hearing.

    According to the OAGF official, CCECC, handling Lagos to Jebba rail line, is to refund N640 million while Costain West Africa Ltd, executing Jebba to Kano rail line is to refund N608 million.

    Geo Group Asano, executing signalling and communications upgrade is to refund N368 million to government coffers.

    Eser West Africa handling the Port Harcourt-Markurdi rail line is expected to return N339 million.

    CCEGG in charge of the Markurdi-Kano rail line would cough out N353 million, while Routing Nigeria Ltd would refund N221 million.

    Also at the hearing yesterday, Minister of Transport, Mr. Rotimi Amaechi who made a brief appearance told the lawmakers that the Ministry would conduct a forensic audit of the railway sector and all agencies under it, to ascertain if due process was  carried out in all its previous operations.

    He said: “I have written to Mr. President to permit the audit.”

    The minister however told the Committee that since he was not the minister at the time the contracts were awarded, it may be difficult for him to answer questions pertaining to them.

  • ‘Calabar-Lagos rail project a must’

    ‘Calabar-Lagos rail project a must’

    The All Progressives Congress (APC) in the Southsouth yesterday said the removal of the Lagos-Calabar rail project from the 2016 budget is a disservice to the people, particularly the Southsouth.

    The party threatened to drag the National Assembly to court over the role of the Legislature in the budget process of the country.

    In a statement signed by the National Vice Chairman in charge of the zone, Prince Hilliard Eta, it also accused the legislature of doctoring and removing about N5b from the rehabilitation of the collapsed and terrible Calabar–Odukpani–Itu–Ikot Ekpene federal highway and allocating same to a non-existent project.

    The statement reads: “We are very upset that our representatives at the National Assembly would discard decorum and hinder progressive change by acting at variance with the infrastructure development agenda of the APC led federal government.

    “The arbitrary removal of the Lagos – Calabar rail track by the National Assembly from the 2016 budget is a display of depraved indifference to the welfare of Nigerians.”

  • Rail transformation on course, says Amaechi

    Rail transformation on course, says Amaechi

    Federal Government’s efforts at transforming the country’s rail transport system are on course, the Minister of Transportation,Rotimi Amaechi, has said

    He stated this during the inspection of newly-acquired executive coaches for the Abuja-Kaduna standard gauge line at the Apapa Ports Terminal in Lagos.

    Amaechi, who was represented by Director Rail, in the Ministry of Transportation Mr Mohammed Babakobi, said government remained resolute in improving the rail transport system in the country.

    He said: “What we have seen here today are the new coaches that have just been brought here, to service our standard gauge line running from Abuja to Kaduna.

    “It is a complete transformation in the rail transportation sector for the populace.

    “The coaches are made with particular focus of the comfort of passengers; they are very safe and have a designed speed of 150km/h.

    “So with that, we can be assured that the passengers will get to their destinations as fast as it can be, and it’s safe.

    “In a very short while, they will be moved to Abuja and installed on the rail tracks, where they are supposed to be servicing, that is between Abuja and Kaduna.”

    He assured Nigerians of the Federal Government’s sustained efforts at acquiring more standard gauge coaches to meet demand.

    “There will be more as we progress on the operation of the line between Abuja and Kaduna; as the demand increases, more coaches will be required,’’ he added.

    Mr Fidet Okhiria, the Acting Managing Director of the Nigeria Railway Corporation (NRC), said the coaches were designed to run at 150km/h, adding that the corporation was on track to upgrade its operations.

     

  • Senators, Reps promise more funds for rail

    Senators, Reps promise more funds for rail

    Things may soon start looking up for the 116-year-old Nigerian Railway Corporation (NRC), following a visit by members of the Senate and House of Representatives Committees on Land Transportation. The lawmakers promised to ensure that more money is given to the corporation for its ongoing transformation, writes ADEYINKA ADERIBIGBE

    FOR the immediate past Managing Director of the Nigerian Railway Corporation (NRC), Adeseyi Sijuwade, the visit of members of the Senate and House of Representatives Committees on Land Transportation was his last official assignment at the 116-year-old corporation.

    Until he lost his job last Tuesday, Sijuwade enjoyed the confidence of the executive and the legislature in driving the change at NRC. After a  tour of the corporation, the lawmakers promised to push for more funds for the corporation to sustain its ongoing transformation.

    The Senate panel Chairman,  Olugbenga Ashafa faulted the N4.5 billion earmarked for the NRC in the 2016 budget, describing it as “grossly inadequate”to meet the immediate needs of the sector.

    Ashafa said: “What can that amount do in one year, for a corporation with an overhead of N399 million? This is because the bulk of that sum is tailored towards personnel cost. For the record, NRC has a total of 9,700 employees.’’

    His House of Representatives counterpart, Aminu Isa, pledged the NRC’s achievements, assuring the corporation of the House’s readiness in making funds available for its capital projects.

    He said: “This corporation if given the chance, will do better. We as honourable members intend to intervene and see how we can greatly assist the NRC in this 2016 budget. I hope the corporation will be able to take us to the level where South Africa and Ethiopia are with their railway systems.”

     

    Away from the past

     

    Sijuwade pioneered the golden era  of the corporation, galvanising change and bringing back on track a sub-sector which had been comatose for decades.

    Detailing the successes of the corporation in the past seven years, Sijuwade said the NRC operated mass transit trains, intercity passenger trains, cargo trains, excursion and specialised charter trains across  the country.

    This is beside the proposed movement of petroleum products from Lagos to the North to strengthen railway relevance to economic growth, a development that would start anytime soon.

    For him, the railway is not only back on track, it is on its way to achieving greater feat and becoming the hub of government’s mass transit initiative.

    Faced with paucity of funds, indigenous engineers had innovated the production and fabrication of critical parts that has kept the rolling stocks on track.

    Sijuwade said over 300 coaches and 200 locomotives have been rehabilitated locally in the corporation’s bid to increase the fleet on its stock and ensure the coverage of more grounds.

    The icing on the Sijuwade years was the installation of Safe Train Control (STC) Centre, where all the trains on the NRC network could be monitored, controlled and directed, though computerised monitors.

    Expatiating on the STC, NRC’s Director of Operations (DoP), Mr. Niyi Ali, lamented that the project, a novelty, is 50 per cent completed and the optimisation of its benefits to the tracking, control and signalling operation of the corporation is being impeded by lack of funds.

    The STC implementation, which began last year, is, according to him, a modern railway signalling system which allows the corporation to monitor real-time movements of trains on the tracks, with the aid of the On Board Computers (OBC) installed on its locomotives.

    “With the STC, safety of our rolling stocks and passengers are greatly enhanced because we do not only have the opportunity to see all our trains as they move within all our networks, anywhere in the country, we can also control all our drivers, via the OBC and we can even stop a locomotive with the touch of a button if we see its driver is having difficulty bringing it under control.”

    A trial implementation of the project, he added, began last year.

    “The problem we have is funding. The contractor has not been paid for over a year. This is one of the projects being funded by SURE-P and since its demise, the project has slowed down. A lot of equipment has already been shipped in,” Ali said.

     

    The challenges ahead

     

    With the Sijuwade administration closed, it is the lot of Mr. Fidet Okhiria, his successor, to continue the march and sustain the tempo of the ongoing transformation.

    Okhiria, an engineer, is not on a strange turf as he was hitherto the Director Mechanical, Electrical, Signals and Communications of the corporation.

    The difference is that Okhiria, rather than obeying orders now, calls the shots.

    His major assignment would be to continue to galvanise the workforce and prime them to sustain the change. He is also to deepen the commitment to innovate and invent in the area of raising local content in rail maintenance.

    But, perhaps, his greatest challenge would be taking delivery of the standard gauge and speed train dream of the administration.

    Okhiria would be charged with  charting the strategies aimed at synchronising all the land modes for effective and seamless interconnectedness a necessity in the mass transit initiative of the Buhari administration.

    The new helmsman would be faced with the challenge of raising the workforce of about 10,000, and managing same effectively.

    The NRC’s workforce might increase exponentially if the government’s ongoing transformation in the railway matures.

    The Minister said the Abuja-Kaduna standard gauge line would  generate over 250,000 jobs.

    Okhiria would have to be extra sensitive to avoid darts that might be thrown on his path by those who were driven by nothing other than political consideration to sabotage his focus and mandate. The new helmsman as a career officer may well be aware that the forces that had ensured that the NRC remained prostrate are still well and kicking.

    How he put the opposition that would rage against his administration of the corporation would determine how long he would survive on board.

  • Rail to the rescue

    •Completion of the standard-gauge Abuja-Kaduna rail track is the direction to go

    Great news — Nigeria’s first-ever high speed train service, coasting at between 120Km and 150 Km an hour, opens in March! It is the 186.5km double-track, standard gauge, between Abuja and Kaduna, just completed by the China Civil Engineering Construction Company (CCECC), at the cost of US $849 million. When the service starts, commuters can travel from Abuja to Kaduna (and vice-versa) in between 45 minutes and one hour.

    “Next month, we’ll be taking delivery of modern coaches to run on the standard gauge line, specifically for the Abuja-Kaduna line, so that that service can commence immediately,” enthused Adeseyi Sijuwade, managing director, Nigerian Railway Corporation (NRC), while addressing the media in Lagos. “We are looking at February/March for the service to commence.”

    The project should have been delivered by December 2014. On December 7, 2013, James Lee of CCECC  had, at the Jere section of the rail line, told a delegation of the National Good Governance Tour, that the project was 70 per cent completed; and should be delivered by December 2014.

    Still, Nigeria’s first modern rail tracks are a thing of cheer, even if March 2016 is 15 months behind schedule. Besides, this legacy somewhat spruces the beleaguered Goodluck Jonathan presidency, now mired by unedifying matters. The Jonathan administration did well to keep faith with a project that has now spanned four administrations: Obasanjo, that awarded it, the unsettled Umaru Yar’Adua,  Jonathan and now, Buhari, to inaugurate it.

    But lest we forget: the Abuja-Kaduna line was part of the originally conceived rail modernisation project, to run from Lagos to Kano, which Obasanjo awarded at the dusk of his presidency.  A Lagos-Calabar line was also mooted.

    But Barau Gafar, in 2013, the federal director of railways, said the Lagos-Kano project was later split into six segments: Lagos to Ibadan, Ibadan to Ilorin, Ilorin to Minna, Minna to Abuja and Abuja to Kaduna. He also disclosed that the government decided to kick off the projects in two phases: Abuja to Kaduna and Lagos to Ibadan. The Abuja to Kaduna phase was started in 2010. So far, however, there is no evidence that the Lagos-Ibadan phase has taken off.  Mum too, appears the situation on the Lagos-Calabar line.

    This is, of course, the big challenge for the Buhari government. If the local economy is to be deepened, and the constant guillotine of the Naira on the stake of parity with the US Dollar halted, modern rails hold the key. The rail is central to transportation, which is central to growing the Nigerian real economy, now that the administration is committing itself to a gross domestic product (GDP) growth of 4.2 per cent, if it faithfully implements the 2016 budget.

    It may not be the best of times, resource-wise, with the plummet in the price of crude, below the US $38 budget benchmark. Still, it is strategic that the other five segments of the Lagos-Kano rail be paid attention to as soon as possible.

    Buhari should take fulsome lesson from the Jonathan odyssey. If that administration had committed itself more to, and delivered more on, modernised rail, it would not only have had something tangible to claim, when it desperately needed electoral endorsement. But beyond elections, that would deepen and strengthen the Nigerian economy. The Jonathan tragedy was that, with crude selling at some US $100, it had the putative cash. But the Buhari challenge is that, even with a near-empty till, he must find the cash!

    Aside from modernisation (which is key), the Federal Government must reclaim the rail paths, blocked after so many years of undisciplined growth. The rail was originally designed to ferry goods from the Apapa ports and quays to the hinterland, so as to free the roads from perilous dead weights, made for rail. But over the years, many of those rail tracks, even inside the Lagos ports, would appear to have been blocked.

    It is time, therefore, to recover these tracks; and give the Nigerian economy the kiss of life it craves. Besides, the near-daily spilling of blood on roads, resulting from falling trailers, petrol tankers and other articulated vehicles should not continue. An active and efficient rail system also holds the solution to this national malaise.

  • Rail: Taking on oil, cargo haulage

    Rail: Taking on oil, cargo haulage

    The Nigerian Railway Corporation (NRC) is reaping from its investments in cargo wagons, following patronage by haulage firms, writes ADEYINKA ADERIBIGBE

    It was a six-paragraph letter; but with a promise of breaking the nation’s dependence on motorised cargo haulage.

    The Major Oil Marketers Association of Nigeria (MOMAN), in the September letter, indicated their readiness to have their products hauled across the country by the Nigerian Railway Corporation (NRC).

    Signed by the association’s Executive Secretary, Mr Obafemi Olawore, the letter said members had agreed to explore rail in carrying their products across the country, especially to the North.

    Olawore hoped the partnership would be mutually beneficial and also impact on the nation.

    Though the meeting requested for by MOMAN to fine-tune the details of the initiative is yet to hold with the NRC board, a source said the haulage may start after the agreement is sealed.

    Worried by the increasing accidents of petroleum laden trailers, Olawore, at a forum, expressed MOMAN’s desire to explore means of ensuring safe delivery of products to outlets nationwide.

    Admitting that accidents are caused by undue pressure on the roads and the old trailers of independent operators, who he accused of giving their vehicles to inexperienced drivers, Olawore said rail haulage would make the roads safer.

    He said MOMAN would remain at the vanguard of finding ways of doing business with the least negative impact on the environment and less danger to other road users.

    He said MOMAN was happy that NRC had acquired oil wagons, adding that its patronage would  reduce the number of petroleum trailers on the road. If the tank wagons are put to maximum use, the trailers would be left with plying the last mile in the supply chain of the product to retail outlets nationwide, he added.

    Olawore said MOMAN would help NRC develop its capacity to respond to increased demand for such services nationwide.

    Under the agreement, Mobil, Total, Forte Oil, Oando and Conoil; among others, will take their products to every part of the country.

     

    Esteemed old tradition

     

    Taking on such an assignment is not new to NRC. In fact, about two years ago, Oando blazed the trail and branded some of the corporation’s wagons.

    For long, the corporation has been the nation’s transportation flagship, doing business with corporate players.

    Business people used with the rail to transport their products across the country. The emergent industrial Nigeria relied heavily on the rail as the answer to their transportation and logistics operations.

    From the 1930s to the early 70s, NRC’s narrow gauge track networks filled in the gaps for a nation with a huge road deficit.

    Its cargo wagons criss-crossed the country, bringing groundnut and other produce from Kano and other parts of the north to the ports in the south, and taking finished products among them, cement, flour, drinks and others, especially those imported back.

    The Nigerian Ports Authority (NPA) was busy as the rail moved in and out of the terminals, taking containers from the quays to the inter-lands. It was an era when the railway birthed, midwifed and nurtured the NPA.

    The corporation also played other  significant roles in Nigeria. It once served as the Central Bank and until 1960, its managing director usually served as acting Governor-General of Nigeria, anytime the occupant of the office was on leave.

    The NRC was more renowned for its passenger traffic. It was the gateway to Nigeria and in its heydays, the saying: “If you want to know Nigeria, ride the railway was popular”.

    It was the biggest employer, having over 400,000 Nigerians on its payroll. It also midwifed and played a role in nationalist agitations against colonial government.

    Its mass transit platform was the answer to the government’s mass transit initiatives.  The Mass Transit Train Service (MTTS) connecting Lagos’ to the agrarian suburb of Ogun State, was much sought after by traders and artisans.

    The MTSS was also replicated in Ilorin-Offa, Mokwa-Jebba, Zaria-Kaduna and Kaduna -Kano, with these shuttles recording high patronage. The second arterial line known as Port-Harcourt- Maiduguri lane meant to link the East with the North was added. The corporation recorded peak traffic on all routes until its fortunes began to dwindle.

     

    Return of old glory

     

    The Federal Government’s sustained investment in NRC is now yielding results.

    NRC Managing Director, Adeseyi Sijuwade said the corporation is determined to ensure that train is visible in the economy.

    He said: “Our first major assignment was to rehabilitate the tracks. This ensured that the trains were back on track. The completion of that phase saw us introducing the long shuttle trains and the revival of the Lagos-Kano line in 2012. Last year, the success of the Lagos-Kano line led to the reactivation of the Port-Harcourt-Maiduguri line, with the successful take-off of the Port-Harcourt-Enugu-Gombe mixed train.”

    Sijuwade added that the success of passenger trains, gave management, the confidence to reactivate its cargo carriage capability. In 2012 and 2013, it acquired 40 oil tank wagons, in addition to its old rolling stock. With a storage capacity of 120,000 litres of fuel, the train as at today, has the capacity to haul about 4.8 million litres of petroleum products to the depots nationwide, especially in the North.

    This will mean 40 petroleum trailers taken off Lagos roads.

    Strategic partnership is also going on, The Nation learnt in other sectors of the economy.

    NRC’s Deputy Director of Public Relations, Mr Abdulrauf Akinwoye said some organisations, among them Lafarge-Wapco Cement and Nigeria Flour Mills (NFM) Plc, have been patronising the railway.

    Many terminal operators are also taking their containers by rail to their inland depots nationwide.

    Giving an insight into the traffic profile, Apapa Train Station Manager Mrs Ngozi Umoh, said no fewer than 750 Very Important Persons used the Diesel Multiple Unit (DMU) train service in the last four months; 230 used the economy class daily.

    According to her, 328,000 bags (about 10,500 tonnes of flour), produced by the NFM have been carried to Kano by train in the last five months; two container trains also leave Lagos Terminals for Kano weekly.

    The NFM also uses the rail in the carriage of wheat. Five train loads leave Lagos for Kano monthly.

    Mrs Umoh said the major impediment to higher patronage is the poor state of the tracks. She said the tracks, which aged, are affecting the efficiency of cargo trains.

    Presently, NRC takes Lafarge-Wapco Cement from Ewekoro to the North.

    The Chief Executive Officer of Connect Rail Services Limited, Mr. Edeme Kelikume said: “Bags of cement are loaded into covered and open wagons after they are palletised. We load three wagons at once within an hour and at peak efficiency, we can complete the haulage of the wagon within four hours, because you have to give some time for the shanty against 12 hours and the open wagons is even faster. We can load the whole 12 wagons within three hours at full efficiency for the open wagons.”

    He said soon, Lafarge-Wapco would be taking its product from Ewekoro to Lagos by rail. When this eventually happens, it would reduce the pressure on the roads as the trucks would be limited to last mile shuttle, distributing from the rail station to our warehouse and other depots. “This is the model we are driving at across the country,” Kelikume added.

    Lafarge-Wapco, he said, would be carrying 100 million tonnes of cement by train. “Presently, the train is hardly doing 200 tonnes of goods, which is not even up to one percent. The rest we are transporting by road,” Kelikume said.

    “We have the capacity of shipping two trains daily to Lagos, because it is not far. This means you will be taking away almost 50 trucks from the roads. Some of our prized customers in Lagos have also agreed to patronise the trains.

    “Through this, an estimate of 100 trucks would be taken off Lagos roads daily. This is an initiative that ought to have begun in November. Presently, we move Cement by train to Ilorin, Minna, Kaduna, Kano.”

     

    Conclusion

     

    Sijuwade said the presence of trains does not mean that trucks will be off the roads. Rather, the trains are to make them more efficient. He said trains have the key to unlock the gridlock at Apapa and other congested roads in the city.

    For instance, the truck’s turn-around time would be enhanced, with the wear and tear of the road and the truck reduced. The driver and the vehicle would be safe, and nobody would have to sit down for long hours inside gridlock.

    With more investment aimed at boosting the train’s capacity, he hopes the country would hit the one-billion cargo tonnage club soon, adding that countries that roll out a billion tonnage rail cargo yearly, such as China, Russia, India, and United States also have the highest truck counts.

    The snag is that the rail lines are still century old and may not be compliant.

    Experts are happy that the government is focusing on transportation. They, however, want the government to focus on taking the rail tracks to the Lagos seaports.

    “We have been clamouring for inter-modal transport where some cargoes will be moved by the road and others by the rail. In fact, more than 50 per cent of the containers and other cargoes ought to be moved by rail,” said August Ibechukwu, an accountant at a leading terminal in Tin Can Island Port, Lagos.

  • Buhari to discuss multi-billion rail, power projects with Chinese leader

    Buhari to discuss multi-billion rail, power projects with Chinese leader

    President Muhammadu Buhari will today leave  Nigeria for Johannesburg, South Africa to attend the Forum on China/Africa Cooperation (FOCAC).

    He will at the forum, which begins tomorrow, follow up with his last meeting with Chinese leader Xi Jinping on the sidelines of the United Nations General Assembly Summit in November in New York, United States (U.S.).

    Buhari had indicated to the Chinese leader at the New York meeting that he wanted China to resume stalled rail projects under new terms that would see the Asian country providing nearly all the financing required.

    Of interest to the President is the coastal railway project stretching 1,402 kilometres linking Lagos with Calabar – a project that is expected to be financed with $12 billion Chinese loan and which will create about 200,000 jobs.

    Another rail project that will be up for renegotiation is the $8.3 billion Lagos-Kano standard gauge modernisation project, of which only a segment, Kaduna-Abuja, has reached completion stage.

    Buhari, according to a statement by his Senior Special Assistant on Media and Publicity, Garba Shehu, is also expected to discuss ways of removing all obstacles in the way of the 3,050 megawatts (MW) Mambila Power Station, considered a strategic project which was conceived in 1982, but has not taken off.

    The Chinese President had informed the President of his country’s willingness to finance the whole project through a special loan agreement.

    The President, who will be accompanied by the Minister of Foreign Affairs, Geoffrey Onyema; Minister of Transportation, Chubuike Amaechi; and the Minister of Industry, Trade and Investment, Okechukwu Enelamah, will return to Abuja on Saturday, December 5.

     

     

  • Is this rail’s magic pill?

    Is this rail’s magic pill?

    A bill for a law repealing the Nigeria Railway Corporation (NRC) Act has scaled second reading at the Senate. Is the proposed law the cure for NRC’s problems, asks ADEYINKA ADERIBIGBE.

    That the ailing Nigerian Railway Corporation (NRC) needs more than the injection of funds is not in doubt. The major task is making it to function optimally. The railway has lost its glory; it used to be Africa’s first train system. Now, it seems to be the most inefficient, with rusty rolling stocks.

    Its history can be traced to 1898. That was when the first rail road was constructed by the British colonial government and the steam engine, locomotive, began operation.

    On October 3, 1912, the Lagos Government Railway and the Baro-Kano Railway were amalgamated, giving rise to the nationwide rail service under the name – Government Department of Railways. The name stuck until 1955, when it was changed to the Nigeria Railway Corporation, when the Act setting it up as a service oriented agency was passed.

    The rail network reached its peak performance in 1964, shortly after independence in 1960. Thereafter, it entered a long season of decline because of mis-management and non-maintenance of its rail and locomotive assets.

    In 1988, the corporation declared bankruptcy and rail traffic stopped for six months, after which it resumed skeletally, where the tracks were serviceable. By 2002, passenger traffic was stopped altogether to allow for rehabilitation of the rail road network.  In 2005, after several re-organisations, passenger transport was reintroduced and in December 2012, regular scheduled passenger service was restored on the Lagos to Kano route.

    By 2006, with foreign assistance, fresh contracts were signed to restore worn out rail lines and add new rolling stocks.

    At the height of its glory, the NRC was the highest employer of labour. It provided jobs for over 45,000 Nigerians between 1954 and 1975, all of whom were disengaged leaving it with a workers’ strength of over 6,000. Also, no new wagons has been bought since 1993, and some wagons date back to 1948. Poor track condition has also affected its efficiency, limiting train speed to 35 km/h.

    All of these have left the NRC incapable of delivering on its mandate of being the backbone of the mass transit initiative of the government.

    However, since 2006, there has been consistent effort by successive governments to rebuild the 1,067 mm (3ft, 6ins) network known as the narrow gauge to globally-accepted standard.

    With the challenge of huge capital outlay of the ambitious project came the need to tinker with the old operational Act, which stakeholders believed has outlived its usefulness.

     

    Old Act, old trouble

    When the Act was put together, the colonial powers devolved the right to fund, operate, expand, and invest on the railway on the central government. The Act, which was cited as Cap No 129 of the LFN 2004, gave exclusive legislative right on the railways to the Federal Government. What this means is that the running, administration and the funding of the corporation, including the approval of rights to run other rail systems on its corridors, must be approved by the corporation.

    This law put paid to moves in the past to have other players invest in the rail sector. Besides private sector operators who were barred, state governments and their agencies were barred from investing in the sector.

    Between 2002 and 2006, the South-west governments, using the Oodua Investments as a special purpose vehicle, had proposed to have a regional train service linking all its member-states’ capitals. The idea suffered a still birth. Several other moves suffered similar fate in the past.

    Attempts were made during the period to have the laws amended, but the then government would have none of it. It preferred to have an exclusive control of the corporation.

    It was not long, thereafter, that the Federal Government realised it could no longer fund the corporation. To give birth to a rail system that would operate at par with others across the world requires fresh funds.

    In 2010, the Federal Government put together a 25-year strategic transportation master plan that intended to make the railway the fulcrum of the transportation system, a development that would require the private sector to fund the railway to jumpstart its efficiency.

    In 2013, a strategic summit was convened at Abuja, where local, foreign investors and major private sector players were sold the idea of a new and emerging Nigeria Railway Corporation that would be shorn of the old capricious Act that had held it down for over a century.

    At the summit, the NRC Managing Director, Mr Adeseyi Sijuwade, said the private investor funding was the new vista of hope for the corporation because the Federal Government could no longer provide the huge capital outlay needed to achieve a globally fitting rail system for Nigeria. He said the railway of the future would be run on standard gauge that would offer fast, easy, affordable and efficient service to all. He said the last administration presented the bill for the repeal of the old Act to the National Assembly. The bill passed the first reading at the seventh assembly last year. It also passed the second reading last Tuesday

     

    New wine

    If finally passed, the new law will  remove all restrictions that had held down the railway and hampered its efficiency. With the law, a new, modern rail system comparable to what obtains anywhere in the world would not only be a pipe dream but an achievable feat.

    Titled: “A Bill for an Act to repeal the Nigerian Railway Corporation Act, Cap N129, Laws of the Federation of Nigeria, 2004, and to enact the Nigerian Railway Bill, 2015 to Provide for the regulation of the Railway Sector in Nigeria,” the bill sponsored by Senator Andy Uba, (Anambra State), seek to revolutionise the Nigerian Railway system for an enhanced transportation though the creation of appropriate regulatory agencies that will make it comply with international best practices.

    Uba said the new law will create an enabling environment for the railway sector to boost the transportation sector of the economy.

    Lamenting the long years of neglect of the rail sector in Nigeria, and noting that the consequences the neglect have manifested in the bad road network across the country, worsened by the heavy duty trucks that plies them,  Uba expressed sadness that there had been little or no investments made on the Nigerian rail sector from the mid 1980s when the Nigerian Railway Corporation declared bankruptcy, until recently, through the efforts made by former President Goodluck Jonathan.

    According to him, the revival of the rail sector in Nigeria will come about through the provision of rail service component to overhaul the business of the Nigerian Railway Corporation, to drive it towards efficiency.

    Uba said the old Act is replete with deficiencies, which he stressed have so far jeopardised all efforts to make it work.

    He said the proposed repeal of the old Act became necessary because the new law, which would be put in place as replacement, will make the Nigerian transportation sector to be in consonance with international best practices.

     

    New framework

    He said: “The new Bill seeks to provide for the appropriate legal framework for the implementation of Government’s reform programme on the railways system, while providing a platform for the introduction of Private Sector Investments and promote competition for the delivery of efficient rail services in Nigeria.

    “The new Bill captures a restructured governing board to manage and implement the policies of the Corporation.

    “It also invokes changes in the extant law, to now provide for effective Rail Transportation, Infrastructural Development, Railway Concessioning, Implementation of the National Rail Policy, Determination of Public Service Obligations, Effective Passenger Services and the Establishment of a Regulatory Framework for Private Participation, in order to revamp the rail transportation system in Nigeria.”

    According to the senator, the Bill if passed into law, it will ensure that the headquarters of the Railway Corporation would be located in the Federal Capital Territory, Abuja, while it will maintain zonal offices in the six geopolitical zones of the federation.

    He said by the provision, the usual complaint of neglect by geopolitical zones would have been taken care of, while also ensuring that the railway system is brought into the Federal Capital Territory and go through all the geopolitical zones of the country.

    He said Nigeria has a lot to benefit from the revival of the railway transport system such as cheaper transportation of heavy duty goods, raw materials and farm produce, as well as encouragement of commercial agriculture.

    An improved transportation system in Nigeria, he noted, will also boost industrialisation, adding that such will in turn reduce importation of finished goods, while also lowering the cost of living within the country.

    Senate Minority Leader, Senator Godswill Akpabio, while supporting the Bill, urged the Senate to ensure a speedy passage.

    Akpabio said there was no better time for such a Bill to be passed into law in Nigeria because of the benefits Nigeria stands to gain from an improved railway system in Nigeria.

  • $600m China Exim-Bank rail loan not diverted, says Okonjo-Iweala

    $600m China Exim-Bank rail loan not diverted, says Okonjo-Iweala

    The former Minister of Finance, Dr Ngozi Okonjo-Iweala, has described as false, the allegation that she diverted a substantial part of a one billion dollar loan from the China-Exim Bank.

    The refuttal is contained in a statement in Abuja yesterday by Mr Paul Nwabuikwu, Special Adviser to Okonjo-Iweala.

    The Permanent Secretary, Ministry of Transport, Alhaji Mohammed Bashar, said about $600 million of the one $1 billion loan obtained from the China-Exim Bank for Kano-Lagos rail project was diverted to other projects.

    Okonjo-Iweala said the Goodluck Jonathan administration never obtained a loan from the China-Exim Bank for Kano-Lagos rail project.

    “The alleged diversion has no substance for the simple reason that the Kano-Lagos project was not among the projects presented for funding by the China-Exim bank.

    “It was the Lagos–Ibadan rail project, not Lagos-Kano rail project that was proposed in the original application to the China-Exim Bank, but in the end, no funds were assigned for Lagos-Ibadan rail project.

    She said the projects covered by the China Exim-Bank loan were at different stages.

    They include “the $500 million expansion of four International airport terminals in Lagos, Kano, Abuja and Port Harcourt.

    “There is also the $500 million Abuja Light Rail project; $984 million Zungeru Hydro-electric power project and $100 million Galaxy Backbone project,” she said.

    Okonjo-Iweala said the diversion of the fund would have been extremely difficult due the terms attached to the loan.

    “The procedure is that funds for approved loans remain in the China-EximBank and are released directly to the Chinese firm executing the contract only after the presentation of duly certified proof of work by the responsible ministry.

    “In this case it would have been the Federal Ministry of Transport, based on the agreed milestones.

    “For the sake of emphasis, the China-Exim Bank does not disburse money directly to government and therefore the issue of diversion does not arise,” she said.

  • Okonjo-Iweala denies diversion of rail loan

    Okonjo-Iweala denies diversion of rail loan

    Former Finance Minister, Dr Ngozi Okonjo-Iweala has denied recent allegations that a $1 billion China-EximBank loan for the Lagos-Kano rail project was diverted under her watch.

    In a statement made available to the media on Sunday, Okonjo-Iweala noted that, “the alleged project was on the list of China-EximBank funded projects, diversion of any Chinese funds would have been extremely difficult because the terms of the contract and the processes would simply not have permitted such action.”

    The former finance minister noted that the existing procedure for accessing China-Exim Bank loan “is that funds for approved loans remain in the China-EximBank and are released directly to the Chinese firm executing the contract only after the presentation of duly certified proof of work by the responsible Ministry, in this case it would have been the Federal Ministry of Transport, based on the agreed milestones.”

    The China-EximBank she said “does not disburse money directly to government and therefore the issue of diversion does not arise.”

    To corroborate her defence, Okonjo-Iweala called on interested parties and individuals to “cross-check with the China-EximBank or the Chinese Embassy” because according to her, “the alleged diversion has no substance for the simple reason that the Kano-Lagos project was not even among the projects presented for funding by the China Exim Bank for several strategic infrastructural projects across the country.”

    ” It was the Lagos–Ibadan rail project, not Lagos-Kano rail project that was proposed in the original application to the China-EximBank she said ” but in the end, no funds were assigned for the Lagos-Ibadan rail project by the China-EximBank.”

    The projects being funded from facilities obtained from the China-EximBank and which are at various stages of progress and can be confirmed Okonjo-Iwela pointed out are:

    · $500m for the expansion of four International Airport Terminals in Lagos, Kano, Abuja and Port Harcourt.
    · $500m for the Abuja Light Rail project
    · $984m for the Zungeru Hydro-electric power project
    · $100m for the Galaxy Backbone project