Stakeholders crave for defined model to drive investment in railways

By Fidelis Ugbomeh

The recent approval of a permanent operational Licence for Lagos State government by Management of Nigerian Railway Corporation (NRC) to operate between Oyingbo-Agbado corridor and construction of 13 Kilometres track along Mile 2-Marina corridor have been heralded with mixed reactions.

Director of operations, Bueno Logistics Limited, Mr.Paul Ndibe in his remarks commended the pioneering feats of the corporation and state, saying the initiative of the latter in construction of “Blue line”, and code sharing arrangement with former on the “Red Line”, have within a short span eased movement of people enmass along these corridors.

He however advised “management of the corporation to develop its own model for private, public participation such that interested investors would have a clear vision of investment opportunities and be able to make their choices accordingly”.

Ndibe enjoined the corporation to concentrate on its core area of mandate to construct and maintain tracks as well as regulate operators while granting private operators permit to purchase Locomotive engines, coaches, and wagons.

He explained further that the operators that use the tracks would in turn be required to pay royalty to the corporation for construction and maintenance of the railway lines based on some terms of agreement.

Corroborating, managing director, Hopewell Nigeria Limited, Eric Umezurike posited that state governments interested in the construction of rail tracks, should seek authorisation/licence from NRC to ensure the rail lines are constructed in line with standard regulation stipulated by the corporation.

He suggested that thereafter the tracks and terminals should like what obtains in the construction of Airports by state governments, be thereafter handed over to management of NRC for regulation of private or state operators.

According to him, based on this model the states would be granted permit to construct tracks as well as operate trains according to stipulated standards and training procedures.

Umezurike suggested that services such as catering, advertising, printing and cleaning should be ceeded to professionals in the private sector while concentrating on regulation of operators like what obtains at the Airport’s.

He stated categorically that the liberalisation of the corporation should be taken as an advantage to enhance freighting of stipulated tonnage of cargoes by rail.

The freight forwarder, said that “if the rail option is made attractive, through private sector participation many exporters and importers would prefer to use railways compared to the risks associated with goods transit by road which currently accounts for over 90 percent of goods evacuated in and out of our ports”.

Delay of exports

Regarding delay currently experienced in evacuation of export goods, Ndibe posited that many, export containers evacuated into the Apapa Port terminal by rail, road and barges are currently trapped at the APM Terminals (APMT) Apapa due to growing congestion at the terminal, raising concerns over potential losses to exporters.

He also noted that the war between United States and Iraq has taken its toll on volume of exports and by extension profit margin of exporters because the more container/cargoes are delayed at port terminals the lesser the gains.

In a swift reaction, Head of Complaints Unit of Nigerian Shippers’ Council (NSC), Mrs.Juliana Saka, however said during a media parley that the council had intervened following complaints from shippers over the delayed shipment of export cargo.

According to her, the complaints were brought before the council by the Shippers Association, prompting a tripartite meeting involving the council, maersk Nigeria and leadership of shippers’ association.

She explained that maersk attributed the delay to congestion at APMT, particularly affecting export cargo destined for African countries and Far East, as well as repeated vessel rescheduling.

“At the moment, they complained about congestion at APMT with 1,800 export containers sitting at the terminal. They have been able to export about 800 containers, leaving about 1,000 still at the port,” the he’d of complaint unit declared.

She disclosed that the affected cargo consists mainly of hibiscus flowers, which have a shelf life of about one year, warning that prolonged delays at the port could lead to deterioration and possible rejection at the destination.

She noted that while shipping lines had previously complained about a shortage of export cargo in Nigeria, the situation has now changed, with export volumes increasing.

“Before now, most shipping companies often complained that when they come to Nigeria, they go empty because there were not enough exports. Now we are having more exports but we don’t even have enough vessels to take them out, ” Saka said.

According to her, the council had reminded Maersk that if any of the delayed cargo arrives at its destination in poor condition and is rejected because of the delay, the shipping line would be held liable for both the value of the cargo and the freight charges already paid by the exporters.

“We have communicated the resolution of the meeting to both Maersk and the shippers’ association. Maersk promised that by next week they will see how they can get a vessel to lift the remaining containers. We are keeping our fingers crossed and following up on the matter,” Saka declared.

She added that should the cargo arrive at its destination in a deteriorated condition due to the delay, the Council would pursue claims and refunds on behalf of the affected clients.