The Managing Director of the Nigerian Railway Corporation (NRC), Engineer Fidet Okhiria has revealed that a lack of funding is the reason why work on the Calabar-Port Harcourt-Lagos Coastal Rail and the Ibadan-Abuja rail projects has not commenced.
Speaking with newsmen at the weekend during the Corporations 2023 End Of Year Media briefing, the NRC MD explained that it is the desire of the Federal Government to ensure that all State capitals, inland dry ports, and seaports are connected by rail.
According to Engineer Fidet Okhiria, “The Federal Government’s desire is to ensure that all State capitals are linked by rail, all Inland Dry Ports and seaports are also linked by rail. Presently, work is ongoing on the Kaduna-Kano rail. The contractor has started laying tracks in a place called Makarfi close to Zaria down to Kano. The formation from Makarfi to Kaduna to Zaria to link Idu is ongoing.
“The Kano-Maradi construction is also ongoing. For the Calabar-Port Harcourt-Lagos Coastal rail, serious meetings is already ongoing to see the quickest and easiest way of raising funds. Also, the Ibadan-Abuja rail is also delayed due to funding. The line is expected to run from Ibadan through Minna to Abuja.”
On the Lagos-Ibadan cargo rail, the NRC MD explained that double handling charges have been an issue for customers.
“Most of our passengers complained of double or multiple handling charges. Our charges to move a container to and from Lagos to Ibadan are N208,000. If we want to take a container to Ibadan and also return the empty, we charge N208.000; that is N104,000 going and N104,000 coming. I am sure there is no truck that will take a container to Ibadan for N104,000, not to talk of taking it back for same amount.
“So, saying that the cost of moving cargo by rail is high is not true. Rail remains the most cost-effective means of transporting cargo from the ports into the hinterland because it is faster and more cost-effective.
“We are having issues at the ports with Terminal Charges because it amounts to double handling when a cargo owner pays some charges inside the port and still pays the same charges after the container gets to Moniya in Ibadan during transloading to another truck for onward movement to final destination.
“Lagos-Ibadan cargo rail for now stops at Ibadan, but for many of the containers, Ibadan is not their final destination. So, we once complained to the seaport operators to stop collecting Terminal charges on cargoes inside the port before they are loaded on the trains, and the charges were removed; However, I have been reliably told that the charges are back again.
“The Terminal Charges range between N40,000 to N60,000 and is a major reason why many cargo owners are opting to move their containers from the port by road because it won’t apply once the evacuation is done via road haulage. It only applies when the evacuation is done via rail haulage.
“It is double handling because when the cargoes get to Moniya in Ibadan by rail, it will still have to be moved onto a truck for onward movement to the final destination, and the trucker in Ibadan will still demand for handling charges. That’s the problem we are currently facing at the port.
“The least we can do for a Lagos-Ibadan return trip is N208,000 because we have to factor in the cost of diesel. We believe that by the time the standard gauge gets to Kano, the issue of double handling charges will become history because importers will have no choice other than to move by rail from Lagos to Kano.
“Why we are still having double handling charges is because the containers, when they get to Ibadan, will still be loaded on another truck for onward movement up North; but when Lagos-Kano comes on stream, that will be eradicated. As I speak to you, more people are coming to ask that we move their cargoes by rail both for import and export.”
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