Repositioning Nigeria’s Transportation System

The primary goal of the transport sector in Nigeria under the Transformation Agenda of President Goodluck Jonathan is to develop an adequate, safe, efficient and affordable integrated transport system for the citizenry.

Such development processes are, however, expected to be within the framework of a progressive and competitive market economy.

To that end, the Federal Government adopted a policy framework that would provide an enabling environment for private sector participation in all the processes initiated to overhaul the country’s transport system.

Under the new arrangement, the private sector is expected to play a significant role, either via independent investments or through Public-Private Partnerships (PPPs).

The Minister of Transport, Sen. Idris Umar, at a recent ministerial briefing in Abuja, underscored the Federal Government’s willingness to partner with the private sector in efforts to transform the transport sector.

He said that for instance, the partnership could be in the development or provision of infrastructure for the rail sub-sector, where the Federal Government had already made appreciable progress.

The minister, however, said that the Nigerian Railway Corporation (NRC) would soon begin freight and passenger services; starting with the haulage of cement from the Ibese in Ogun State to the northern part of the country.

Wheat will also be ferried from Apapa in Lagos State to Kaduna and Kano; while agriculture produce will be transported from Dagbolu in Osun State to Apapa.

Besides, freight haulage will be carried out for Connect Rail Limited, a freight logistic company, and the railway will transport petroleum products from Apapa in Lagos State to the northern parts of the country.

In the maritime sub-sector, the minister noted some modest achievements had been recorded, citing the recently completed dredging of the lower River Niger by the Federal Government at a cost of N46 billion as a veritable illustration.

He said that the river’s dredging from Warri in Delta State to Baro in Niger State, which covered a distance of 532km, was to facilitate navigability all-year round.

“The channel runs through major towns such as Warri, Onitsha, Agenebode, Idah, Jamata (Lokoja) and Baro. Besides, maintenance dredging is currently in progress.’’

To enhance transportation on the dredged waterway, the Federal Executive Council (FEC) has also approved the purchase of two fast-moving ferry boats to convey people and goods.

Beyond that, river ports are being developed at Baro, Oguta and Jamata, while the Onitsha Port, which has been rehabilitated, will soon be inaugurated by President Goodluck Jonathan.

Umar said that in line with the government commitment to transparency and accountability, the legal and institutional framework for PPP ventures in the transport sector would enable a smooth transfer of responsibilities to the private sector under the new arrangement.

He noted that a review of Railway Act of 1955, for instance, would allow the private sector, state and local governments to participate in ownership and operation of railways.

“We are working on the proposed bill, which is now with the Attorney-General of the Federation, for onward presentation to the Federal Executive Council.

“The bill will subsequently be presented to the National Assembly. It seeks to repeal and re-enact the 1955 Railway Act which makes railway operations the exclusive preserve of the NRC,’’ he said.

Umar expatiated that the new legislation would engender investment opportunities for the private sector.

As part of efforts to boost rail transportation, the minister said that the transport ministry was planning to engage consultants to prepare feasibility studies for the laying of new standard-gauge railway lines across the country.

The new lines include Lagos-Abuja, Lagos-Benin, Ajaokuta-Jakura-Baro-Abuja, Zaria-Kaura Namoda-Sokoto-Ollela lines, as well as Benin-Agbor-Asaba-Onitsha-Owerri-Aba and Onitsha-Nnewi lines.

Besides, there will be coastal rail line — the Benin-Sapele-Warri-Yenagoa-Port Harcourt-Aba-Uyo-Calabar line — while there will be a rail link between Apapa and Tin Can Island Ports.

The minister said that the major railway projects were part of the “25-Year Strategic Rail Vision’’, covering the rehabilitation of the narrow-gauge lines, which traversed the country.

“Contracts for the rehabilitation works, covering over 90 per cent of the existing narrow-gauge rail tracks that traverse 3,505km, have been awarded and the projects are at various stages of completion.

“Construction of Abuja-Kaduna standard gauge rail which is 187km is in progress and about 28 per cent completed.

“Contract for the 360km-Lagos-Ibadan dual-track, standard-gauge rail is ready for award. It is, however, awaiting the conclusion of funding arrangements with China Exim Bank.

“The construction of the standard-gauge rail line in the central corridor from Itakpe through Ajaokuta to Warri is in progress,’’ Umar said.

In his remark, Malam Aminu Yar’Adua, the Managing Director, National Inland Waterways Authority (NIWA), stressed that the various investment opportunities offered by the PPP arrangement included the establishment of tanneries and ginneries, pipeline network laying and oil field services.

“NIWA has called for the establishment of tank farms and agro-allied linkages like fishing and irrigation development in the dredged sections of River Niger,’’ he said.

The dredged waterway has stimulated the people’s interest in inland water transportation and by conservative estimates; it has lifted 430 tonnes of freight off the country’s roads.

For instance, NINON Nigeria Ltd., an indigenous company, has started transporting goods from its factory in Ajaokuta, Kogi State, to the marketers in Onitsha, Anambra State, using the jetty in Ajaokuta.

To improve cargo delivery to and from the hinterland and decongest the seaports, the Federal Government has approved the purchase of six Inland Container Depots (ICDs).

The minister said: “The ICDs are being developed under Build, Own, Operate and Transfer (BOOT) arrangement with the Nigerian Shippers’ Council (NSC) as the supervising agency.

“More ICDs are expected to be built under similar arrangements. The scheme is, therefore, open to interested investors.’’

Umar, nonetheless, expressed the ministry’s determination to strengthen existing measures put in place to regulate the use of port reception facilities, adding that the measures had led to a drastic reduction in pollution by ship garbage.

“Compelled by the desire to curb piracy and armed robbery in our territorial waters, Nigerian Maritime Administration and Safety Agency (NIMASA) engaged the services of a private company, Global West Vessels Specialist Ltd., on a pilot scheme in March 2011,’’ the minister, however, said.

Observers, nonetheless, stress the need for the Federal Government to further expand the scope of inland water transportation in the country by dredging   River Benue and other large waterways across the country.

They particularly call on the people to use the recently dredged River Niger for the haulage of their goods, while imploring the government to construct more ports and jetties by the waterway.

Emmanuella Anokam, writes for News Agency of Nigeria (NAN)

Emmanuella Anokam