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Nairametrics
Home Business News Business

FG to commence construction of 4 new rail projects across the country

Chike Olisah by Chike Olisah
April 10, 2021
in Business, Business News, Spotlight
Rotimi Amaechi, Minister of Transport, Nigerian railway contract with CCECC and CRRC, China Civil Engineering Construction Corporation, Chinese Railway Rolling stock Corporation

Rotimi Amaechi, Minister of Transport

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The Minister of Transportation, Rotimi Amaechi, has said that the Federal Government is about to commence 4 new rail line projects in various parts of the country.

The listed rail line projects include Ibadan-Kano, Port Harcourt-Maiduguri, Kano-Maradi and Lagos-Calabar rail lines.

This disclosure was made by Amaechi while speaking at the annual ministerial press briefing on programmes, projects and activities of the Federal Ministry of Transportation and its agencies on Friday in Abuja.

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What the Minister of Transportation is saying

Although the Minister announced that the Federal Government was about to start the rail lines project, he was not specific on the exact dates the projects would start.

Amaechi, in his statement, said, “We have awarded the following contracts and we are about to start and we have even tried to solve the financial problems. This is because we have the problem of having to hire consulting engineers.

READ: $2 billion Kano-Maradi rail would be completed in 36 months – FG

“The ones we are about to start include Ibadan to Kano, we are waiting for funds from China. We are about to start Port Harcourt to Maiduguri, we are waiting for the cabinet to approve consulting shares. We are also to start the Kano-Maradi and Lagos to Calabar.

“But one thing that is unique about these contracts is that the president early enough directed that all rail lines must stagnate at the seaports.

“That is why there may be a bit of adjustment in the pricing of Kano-Maradi because we have to adjust it to link up to Kano-Lagos so that it can terminate at Lagos seaport.’’

The Minister pointed out that the 185.5km Lagos-Ibadan double standard gauge line with extension to Apapa seaport was nearing completion, while the 186km Abuja-Kaduna and 302km Warri-Itakpe standard gauge lines had been completed and were functional.

READ: FG urges contractors to complete Ebute Meta–Apapa seaports railway extension by January 2021

What this means

  • The various rail line projects are part of the ambitious plan by the Federal Government to create a nationwide rail network that is intended to help in the country’s diversification efforts, away from crude oil.
  • Some of these rail projects will also help to decongest the Apapa ports in Lagos and serve as a route for the import and export of goods in the West African sub-region.

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Tags: rail projectsWarri-Itakpe standard gauge lines
Chike Olisah

Chike Olisah

Chike was a banker with over 11 years experience in retail and commercial banking, risk management, treasury portfolio management and relationship management. He also acquired some experience in financial management and do have some special interest in investment analysis and personal finance. He had stints with financial institutions like the former Intercontinental Bank and Fidelity Bank.

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Comments 1

  1. Supo judeen says:
    April 19, 2021 at 1:11 pm

    This rail project, personally is a welcome development i like it, but sir, the rail line originally passes through a community of about 2 kilometers to my own community in okinni area of osun state. Suddenly we just discovered that the proposed rail line had been diverted or shifted to more than two communities and finally to the nearest community which happened to be my own community with the explanation that big man house and mansions will not allow them to make use use of the original rail line. We demand for more clarification on ‘big man house and mansions’ is it because our own house is small or we are not big enough to resist the move?

    Reply

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