The Delta State Government has assigned its Economic Team the task of evaluating an investment proposal to develop a rail transportation system throughout the state.
The proposal was presented by Mr. Duke Jerome-Scott, Managing Director and CEO of Jezreel Engineering Services Limited, during a meeting with Deputy Governor Sir Monday Onyeme at the Government House in Asaba on Tuesday.
The disclosure, reported by the News Agency of Nigeria (NAN), revealed that Jerome-Scott outlined proposed rail routes, including Osubi-Effurun-Agbarho-Ughelli-Patani and Agbor-Umunede-Ogwashi-Uku-Asaba-Bridge Head, with a connection to the federal rail line from Ujevwu to Itakpe.
The project, he emphasized, aims to drive economic growth, create jobs, increase revenue, and provide vital services to local communities.
“Delta Government on Tuesday said the State Economic Team will study an investment proposal for building a rail transportation system in the state,” the NAN report read in part.
The report noted that the Delta State Deputy Governor acknowledged the significant challenges of constructing a rail system, highlighting its capital-intensive nature and the federal government’s struggles with completing rail projects nationwide.
Onyeme expressed concerns about the proposed Sukuk financing model, noting that while it offers long-term funding, it often results in delayed project completion. He cited the Benin-Auchi dual carriage road, which has been under construction for years despite Sukuk funding.
The Deputy Governor urged the exploration of alternative financing options to ensure the project’s timely implementation.
What you should know
The idea of implementing rail transportation, once seen as strictly a federal government initiative, is now gaining traction among sub-national governments. Delta State’s exploration of a rail network proposal marks a significant shift in this trend.
Following similar moves by other states, such as Abia and Niger, Delta’s Economic Team is tasked with evaluating the feasibility of a state-wide rail system, highlighting the growing interest of regional governments in rail infrastructure.
- In February 2024, Abia State Governor Alex Otti revealed ongoing discussions with a Chinese company to develop a light rail system across the state, with designs currently being developed. Once completed, the focus will shift to the project’s commercial aspects, though no further updates have been provided.
- Similarly, Niger State’s March 2024 announcement of plans to partner with the China Railway Corporation for a state-wide rail network that would extend to Abuja has yet to yield further developments.
- Meanwhile, Lagos State continues to lead in rail development, operating public transit rail lines such as Phase 1 of the Blue Line (13km) and Phase 1 of the Red Line (27km). The final phases of these lines are under construction by the China Civil Engineering Construction Corporation (CCECC).
Additionally, Lagos has entered into an MoU with the Ministry of Finance Incorporated (MOFI) to begin work on the Green Line project, a 68km route connecting Marina to the Lekki Free Trade Zone, with N146.14 billion allocated for the project in the 2025 federal budget proposal.
