One Year Appraisal: NRC Jettisons Concession for Unbundling

There have been widespread speculations about policy of the Present Administration regarding Rail Transport development since assumption of office in May last year. While some are of the opinion that Rail Sector development should be phased on a long-term basis and should be devoid of political undertones others are of the opinion that the present government should continue to invest in Railways due to its capital-intensive nature.

The first thing this government did on assumption of office last year was separation of Maritime from Rail and Land Transport which was seen as a bold step towards the right direction.  A year down the line the body language of the present administration tilts towards continuity from immediate past administration’s rail sector development plan.

One of the major milestones recorded was flagging-off of Port-Harcourt-Aba passenger train service by Minister of Transportation Sa’id Alkali in the month of April this year. Speaking at the occasion, he said the 67 kilometres narrow gauge rehabilitated rail line from Port-Harcourt to Aba was actually started during tenure of erstwhile Minister of Transportation, Rotimi Chibuike Amaechi. Adding that the Port-Harcourt-Aba railway line will be extended to Enugu, Onne and Abakaliki.

Prior to that, the Minister also flagged-off the Lagos-Ibadan standard gauge freight train service as development partners China Civil Engineering Construction Corporation, CCECC completed work on the extension of tracks to A P. Moller terminal.

 Director of Operations Bueno Logistics Mr Paul Ndibe said commencement of freight train service from Lagos-Ibadan and back strengthened the relationship between NRC and Bueno Logistics in the evacuation of containers for Nigeria Tobacco Company, Ibadan and LAFARGE from Lagos to Ibadan and Ewekoro-Ibadan respectively.

The minister also explained that government plans to complete Kano-Maradi standard railway line in 2026 adding that inspection of the project was a clear testimony to seriousness attached to the project by the present administration.

He noted that only Compressed Natural Gas, CNG powered locomotives will be imported for use on the Kano-Maradi rail corridor in order to reduce atmospheric effect of using diesel powered Locomotives in line with global best practice.

Also, the Federal government during the last one year, in December 2023, there was a free train ride along all railway corridors in the country from Lagos-Ibadan to Warri-Itakpe, Abuja-Kaduna and Ijoko-Iddo from December 24, 2023 to January 4, 2024. According to Engr. Ajare Dickson, the free train ride was one of the best things this government did to impact positively on lives of Nigerians after removal of petroleum subsidy on May 29, last year.

He advised government to sustain the free train ride on an annual basis and extend it to other periods of celebration like Sallah and Independent day celebrations so as to allow people to travel to various destinations to celebrate Christmas, New year, Eid-El- Fitri and Eid-El-Kabir with their loved ones especially during this period of increase in cost of petroleum products.

Corroborating, Managing Director of NRC Engr. Fidet Okhiria said government during Yuletide subsidized commercial train service through provision of diesel, security amongst others so as to minimise effect of fuel subsidy removal.

He disclosed that currently the Corporation moves pipelines from Warri-Itakpe for onward transfer by road to Kaduna and Kano under a programme tagged Abuja, Kaduna, Kano.

FUTURE PLANS

Minister of Transport Sa’id Alkali

The Federal government is to start Lagos-Kano narrow gauge passenger service next month. Disclosing this was the Minister of Transport Sa’id Alkali stressing that when it commences, potential of Dala Inland Dry port in Kano State will be more appreciated.

‘Currently work is ongoing in the replacement of vandalized sections of the narrow-gauge railway line preparatory to the resumption of passenger and freight train service.

The MD in his remarks about future plans disclosed that government has since jettisoned the earlier plan to concession NRC in preference for unbundling and that a committee has been set up to work out modalities for unbundling. Service of the Corporation.

According to him, “unbundling means the corporation is now open for investment to the public, private sector. by granting ‘track access’ and opportunity to purchase Locomotives and rolling stocks to interested investors”.

Based on the terms of agreement the states will pay revenue to NRC for operating their trains on the national track just like what obtains at the airports where private airlines pay Federal Airport Authority of Nigeria, FAAN for use of the Federal government’s runway.

He noted that in case of the red line in Lagos, the state government has entered into partnership with NRC for use of the standard gauge rail line to operate commercial train service from Oyingbo-Agbado based on some terms of agreement.

According to him, the Lagos state government will pay NRC some money as payment for use of NRC track to operate commercial train service while the state government through a concessionaire purchased locomotive engines and coaches.

“Plateau State government has also declared interest in the purchase of locomotive engines and rolling stocks which will be operated on the national track for commercial purpose and in return the state will pay NRC for use of its tracks”, he declared 

In Niger, Kaduna, and Borno State, the NRC boss said modalities are being worked out for the states to provide diesel for operating intra state train service for evacuation of farm products and passengers at a cheaper rate from hinterland to urban centres while NRC is expected to provide the rolling stocks based on some terms of agreement.

He stated that “We don’t want to make the mistake made by some government agencies in the past. So, the approach adopted is unbundling so that other states and the private sector can as well invest in rail development and not leave it for the Federal government to fund and operate”.

Mr Fidet Okhiria, NRC MD

The MD also called on Federal government to extend the Warri-Itakpe standard gauge railway line from Itakpe to Abuja so as to allow for easy linkage by rail to adjourning states like Niger, Nasarawa and Sokoto.

He disclosed that plans are underway to link Tin-Can Island port by standard gauge railway line just as government is currently studying the Environmental Impact Assessment, EIA before commencement of the project.