The importance of railways or railroads to the economic growth and industrialisation of a nation cannot be overemphasised. Railways facilitate mass transportation of passengers and goods, a critical ingredient of economic activity. Great industrial power such as the United States, Britain, Canada, Japan and China built that vast industrial empires on the back of railways and it was in this light that the British Colonial masters, more than a century ago, built the existing rail system in Nigeria to facilitate trade between the hinterland and the coast. Yet, poor management, lack of vision and mercenary politics combined to cripple the nation’s railroads. Ag Head of investigations, YEMI OLAKITAN looks at the sad tale of Nigerian Railway Corporation and what could be done to rebuild the nation’s railway system.
The importance of modern trains
Trains were one of the greatest inventions to transform the world. They not only opened up convenient transportation, but growth and development of new cities and jobs. People could find jobs building tracks or mining for coal to fuel steam engines. The cost of living went down as produce, agriculture, clothing, animals, and equipment could be quickly sent in locomotives. Railways had a huge impact on the Industrial Revolution in Europe and America and even replaced steamboats that were used to travel by canals and rivers.
When people first think of trains, the picture of an old steam-engine huffing and puffing up a mountain might come into mind. Modern trains are nothing like they used to be 200 years ago. Trains can go 20-30 times faster than the first steam engine did, like France’s TGV train that can hit 300 miles per hour, this is faster than traveling in a racing car. Trains have evolved and grown as convenient subway transportations that many people take every single day.
The Nigerian Railway Corporation, until recently maintained poor rail system with about 3,557 kilometers of
3 ft 6 in (1,067 mm) gauge track, which have suffered abandonment in the hands of successive governments. It has two major rail lines: one connects
Lagos and Yobe State. The other connects
Port Harcourt in the
Niger Delta and
Maiduguri in the northeastern state of Borno. The Nigeria’s railway was regarded as the non-existent link in the nation’s development chain. For over three decades, that part of the nation’s transport sector declined with no obvious hope in sight for rehabilitation. Before the deterioration, railway transportation served multidimensional purposes. It held very vital socio-economic relevance for all aspects of the country.
The Nigerian Railway Corporation has its historical trajectory tied to the year 1898 when the first railroad was constructed by the British Government in Nigeria. Records available have it that in 1912, the amalgamation of the Lagos Government Railway and the Baro-Kano Railway was achieved. This resulted in the commencement of a country-wide rail service under the tag of the Government Department of Railways. What gave the company its current name as well as the right to operate and construct rail systems was the Nigerian Railway Corporation Act of 1955. The services of the NRC received both local and near global appraisal, entering into the early years of the nation’s independence. But the following years saw a gradual but decimating decline in the services of the corporation. Issues bothering around lack of proper management and maintenance of the locomotive assets and the rails brought the company to its knees. Before long, the corporation went bankrupt and all rail services stopped.
The presence of articulated vehicles conveying goods including combustible contents followed the inability to revive the rail system. This increased the pressure on the roads especially accidents with quite fatal proportions. Roads not meant to accommodate the weight of articulated vehicles fell into worrisome disrepair. Since the comatose state of the rail system became obvious, the cost of rehabilitating the roads became enervating. Many of the major roads connecting the cities, states and hubs bowed to the immense pressure from heavy vehicles.
At its best, the corporation boasted of over 45,000 persons in its employment but such number dropped disturbingly. Attempts to resuscitate the corporation’s erstwhile 1,067 mm (narrow gauge) network to standard gauge met with a brick wall.
The disturbing testament of the rail system was overhauled after the commencement of the transformation agenda of 2011 was announced by the administration of President Goodluck Jonathan. Due to the efforts of the administration, the tracks are alive again and the system is undergoing a revamping.
In order to remedy the poor condition, efficiency, and profitability of the nation’s railroads, the administration of Dr. Goodluck Jonathan sought to privatise the Nigerian Railroad Corporation. Under the privatisation plan, three separate concessions of 25–30 years would be granted to private-sector companies to run railroads in the western, central, and eastern regions. Years of neglect of both the rolling stock and the right-of-way have seriously reduced the capacity and utility of the system.
In a Memorandum of Understanding signed with the Federal Government, the Guangdong Xinguang International Group, a Chinese company, is to construct a revolutionary “fast” rail (RFR) system from Lagos to the capital Abuja (where there is no existing railway) as well as light rail lines to the Murtala Mohammed International Airport from Lagos and to Nnamdi Azikiwe International Airport from the Abuja city centre. According to the government $2bn (N400bn) has been made available to start the projects, and the Chinese company will also invest in the three planned stages of the projected
Abuja light rail system.
Honourable Minister of Transport, Senator Idris A. Umar said, the ongoing rehabilitation of over 90 per cent of the entire existing narrow gauge lines throughout the country is encouraging. According to the corporation, “The rehabilitation is the first segment of the 25 years Railway Strategic Vision.”
According reports, the Western line, Lagos – Kano (1,124km) is completed and passenger services and haulage of goods along the line were flagged off in December, 2012. The rehabilitation work in the Eastern line Port Harcourt-Maiduguri (1,657km) is progressing steadily within the Port-Harcourt- Gombe segment including the branch line from Kafanchan-Kaduna expected to be completed.
“Rehabilitation of sidings and loop lines along the Western line, including connection to key industrial locations within Apapa 74 stations and branch lines between Lagos and Kano, the 300 meter link between Apapa Port Complex and the national line and the spur line to the Kaduna power plant complex have commenced”, according to government documents.
The corporation went a step further by procuring twenty-five 2500HP locomotives from GE, four 1800HP locomotives from CNR of China, 40 pressurized tank wagons, two 100ton telescopic cranes, three wheel machine, six 68-seater air-conditioned coaches, additional five 68-seater air-conditioned coaches, two sets of diesel multiple units (DMUs), two 1800HP CNR locomotives, two power cars, two 18-seater rail buses, 18 rail cars with trolleys for track maintenance, two 3500HP locomotives with in-built power cars and 5 air-conditioned coaches for standard gauge tracks to be delivered in the first quarter of 2015.
According to Francis Ehimere who spoke with
Sunday Mirror on the subject, “The trains take off from Apapa and goes farther than Ijoko in Ogun State. I usually alight at Agbado. And often times I board the train from Ebute Metta.’’
According to Francis, “The new train is very good, although it costs N750 to board the new train. It is more comfortable than the old ones. It does not carry as many passengers like the old one which costs N230 and has about 11 or 12 coaches, and can take as many people as possible. The old train used to pack people like sardines except in the afternoon. The new train introduced by the Federal Government is better, because you can sit down like a human being but not everybody can afford the cost. The one of N230 everybody can enter that one and it is usually overcrowded. What government should do is to privatise the railways and let more trains come in. Government’s role is just to regulate the industry. They cannot even meet the demand for rail transportation alone so they need to open it up for international private players. The way it is now, there is corruption in the system. They cheat government through ticketing. This is not properly monitored. If it is in the hands of the private corporate entities, they will be able to monitor it well and there will be more competition. I don’t think the railway is giving government much in terms of internally generated revenue so I believe that the way forward it to open it up for more private investments”, he said.
A visit to the railway station in Yaba and Iddo terminus by
Sunday Mirror reveals that the trains are actually working. However, the old trains purchased by the colonial masters are still in used. In a chat with a passenger, Mobolaji Waheed, he said, “This train is dirty and smelling. As you can see Nigerians are hungry for rail transportation. Looking at the number of people here. I personally do not agree that they should abandon these old trains but I believe that they should be rehabilitated. They are old and very dirty. The newly purchased trains by President Jonathan are costlier; this is why people still prefer the old train. Government needs to do more to make rail transportation more available to Nigerians at very affordable costs”.
In another chat with Mrs. Roseline Oyefule, a passenger in Oyingbo, she said, the Federal Government is laudable but inadequate. We want to see trailers off our roads. When that happens then we will know that the trains are actually back. Furthermore, look at the train stations, they smelling of filth, the level of environmental degradation is alarming. The government needs to fix that as well. Train stations can be a place of commercial activities when social amenities are put in place such as public toilets but when the place smells of urine, it is very terrible. I don’t think that this is how train stations are run in developed nations. How long will this country remain like this? Nigeria needs to wake up from its slumber. We know that President Jonathan is doing something in the railway sector and we can see the new trains but they are grossly in adequate. They need to do more,’’ she said.
Jonathan’s efforts in the rail sector
The full outline of the railway rehabilitation and expansion plans by the outgoing administration shows that over 3,000km of the entire existing narrow gauge lines throughout the federation is witnessing rehabilitation. The Western Corridor Rail Line from Lagos that passes through some South-Western States to Kano, a total of 1,124Km, is successfully rehabilitated. Also cheering is the Eastern Corridor Rail Line from Port-Harcourt – Maiduguri (1,657Km) which is also undergoing rehabilitation. The desirable ripple effect of this exercise is the kick-off of passenger and Haulage train services from Port-Harcourt – Enugu railway Station (243Km) in December, 2014. Amid much jubilation, the linkage of this rail line to Makurdi was launched on January, 23, 2015. This is expected to be extended to Gombe axis, Kafanchan – Kaduna.
There is also the on-going rehabilitation of sidings and loop lines along the Western Line including connections to key industrial locations within Apapa; 74 stations and branch lines between Lagos and Kano, the 300 meter link between the Apapa Port Complex and the National line and the Spur Line to the Kaduna Power Plant Complex. Similarly, there has been the modification of Microwave Communication equipment for Narrow Gauge with 72 Repeater Sites Nationwide to provide a backbone for the Automated Train Warranty (ATU’) Signaling System, Intercom Communication within the railway network and to enhance passenger information, CCTV and Internet Services. The rehabilitation phase has equally witnessed the refurbishment and modernisation of existing rolling stock and procurement of new rolling stock for the Narrow Gauge Rail Lines which the limited space will not accommodate.
According to reports, the number of passengers conveyed by rail increased from 4,155,988 in 2012 to 4,328,789 in 2013 and to over 5,000,000 passengers in 2014. In isolated cases, Mass transit trains make about 18 trips from Iddo (Lagos State) to Ijoko (Ogun State) and convey over 20,000 passengers daily in Lagos. The Kaduna intra-city mass transit makes 10 trips per day and conveys about 10,000 passengers daily.
In the area of freight services, about 3,000 tons of flour are moved from Lagos to Kano monthly; about 3,000 tons of cement are moved as well, about 9,000 tons of track materials are moved for rehabilitation of Eastern Corridor every month and about 2,000 tons of containers for ICNL are moved from Lagos to Kano on a monthly basis.
Investigations reveal that the laying of tracks of Idu (Abuja) – Kaduna Standard gauge rail line (187.5km) is 100 per cent completed and will soon be commissioned for public use. The construction and rehabilitation of the Itakpe-Ajaokuta – Warri standard gauge rail line including the signaling and telecommunication component have reached advanced stages of completion.
Furthermore, President Goodluck Jonathan inaugurated an air-conditioned passenger inter-city rail transport system that would link Makurdi, Benue State with Port-Harcourt, Rivers State
The Chairman, Nigerian Railway Cooperation, Bamanga Tukur, said, the commitment of the Federal Government in the railway sector would trigger development of the economy.
The Minister of Transport, Idris Umar, called on the people to take advantage of the opportunity, which the present administration is providing in the railway sector.
On its part, the Nigeria Railways Corporation, NRC, called for the active participation of the private sector in moving the project forward.
According to Managing Director of NRC, Mr. Adeseyi Sijuwade, the initiatives will build local content and “is a first step towards assembling locomotives locally prior to a future local manufacture of same,” disclosing that “ultimately we target a system stabilization that will make railways work better.”
On the impact of the intervention, Sijuwade, who confirmed that the organisation is yet to achieve its optimum performance however appealed to the private sector to support the current efforts by investing in the sector.
“We are not there yet. We are still creating awareness. We are letting people know that the railway is back on track. We have been dressing the bride. We are coming up with a bride that will be attractive to the private sector,” he stated.
He dismissed insinuations that government’s intervention in the sector is merely political, saying: “this is not true. The railway is a visible entity that you cannot fabricate despite challenge of meeting passengers overwhelming demands for its services.”
However, Chairman of the House of Representatives Committee on Land Transport, Hon. Musa Sarkin Adar faulted the government’s efforts.
“Although the rail sector in recent times has attracted the Federal Government’s attention under the transformation agenda but permit me to say that the current intervention in the sector is a far cry considering the level of infrastructural development in the rail transport system in Nigeria, a nation estimated to inhabit 150 million citizens,”
“Where we are today in our quest for rail development must never be considered a destination but rather a stepping stone for the actualization of the Nigeria of our dream with a world class rail system,” he advised.
Governor Babatunde Fashola of Lagos State also said new trains and coaches would improve the transport system in the state for the benefits of all residents.
“It is a very welcome development to our nation, Nigeria and to the Centre of Excellence, Lagos State. No doubt, we require this infrastructure.
“We appreciate it and we will continue to give every moral support that the corporation requires as we now have complementary services in the transport system of Lagos State,” the governor said.
Records further showed that the Iddo terminus station, Ebute Metta junction station, Ilorin station, Kaduna junction station, Kano station, Port Harcourt station, Enugu station, Jos station and Gombe station were also being remodeled.
Vice-President Namadi Sambo, who performed the official track laying of the Abuja-Kaduna fast train line, signifying the complete modernization of the railway system in the country said, ‘the funding of the project was enhanced through SURE-P.” He said that the project was also co-funded with the 500 million dollars concessionary loan from China Exim Bank.
Sambo commended Messrs China Civil Engineering & Construction Company (CCECC) Nigeria Limited, the project handlers for its efforts at ensuring timely completion of the project.
He said that the project had reached 68 per cent completion, including earthworks, hydraulic structures, railway bridges; box bridges; precast T-beams for bridges; and over pass bridges. He said that seven new standard gauge lines were also being proposed under the Public-Private Partnership arrangement.
He listed them as the 322km Lagos-Benin City line, 500km Benin-Abakiliki line, 673km Benin- Obudu Cattle Ranch line, 615km Lagos-Abuja high speed line, 520km Zaria-Birnin- Koni line, 533km Ega nyi-Otukpo and the Ega nyi-Abuja line.
Appraising the progress of work so far, the Minister of Federal Capital Territory (FCT), Sen. Bala Mohammed, said that the project would cost the government more than $823 million.
This, he said, would cover the cost of final design and construction of Lots 1 and 3, respectively, which is approximately 60.67 kilometres.
Nonetheless, analysts have advised the incoming government to allow more private sector participation in the railway modernisation programme in order to ensure sustainability.
They note that more pragmatic efforts should be intensified to link the FCT and neighbouring states with standard gauge lines, while the ongoing light rail project should be extended to the satellite towns, particularly Nyanya, Mararaba and Karu to reduce vehicular gridlock. Nigeria’s largest city Lagos is also constructing a light rail system under a public private partnership (PPP). The project is sponsored by the Lagos State Government (LSG) and it is developed by Lagos Metropolitan Area Transport Authority (LAMATA) on behalf of LSG. Commentators said, such efforts should be replicated in other states of the federation particularly the urban centers.
Observers contend that the problems facing the railway sector were hydra-headed and included outdated and badly maintained infrastructure — derelict rail tracks and decrepit locomotives and wagons — as well as poor management, among other factors. The railways, in spite of being the major means of mass transportation of passengers and freight, witnessed an extraordinary decline in investment over the years. The consequences of this development are somewhat frightening.
Analysts note that if the gains made by the Jonathan-administration in the rail sector are sustained, the traffic nuisance constituted by articulated vehicles on the country’s highways will be drastically reduced.
Investigations by
Sunday Mirror reveal that passengers expected government to do more than it is being done due to the years of neglect. More private involvement in the project is also agitated.
Reports also reveal that the federal government under President Goodluck Jonathan has made plans to fully privatise the railways in Nigeria which are regulated and operated by the Nigerian Railway Corporation, NRC.
Under the privatization plan, the government will grant concession to private sector companies, who would be expected to provide train service and maintain the infrastructure. Three separate concessions of 25–30 years are expected to be given out for the western, central, and eastern regions. Under the plans, the NRC through its subsidiary, Railway Property Company Limited, will also sell nearly 200 million square meters of lands, landed property and other fixed assets.
The services units of the NRC which provide direct services to the railway industry will be sold to private companies. The benefit of selling the units is to aid them focus on their core business and improve the efficiency of the services they provide.
The services units include: The workshop services unit: The unit mainly provides maintenance of rolling stocks. Printing press: This unit is responsible for the printing of all the tickets currently used on the national rail network. Catering services: This unit presently provides catering services on the long distance train services. The proceeds from the sales of these business units will be paid directly into the National Railway Fund.
According to reports, the Federal Government will establish the Railways Regulatory Board, which will oversee all activities in the Nigerian railways sector. The major responsibilities of the body will be to carry out economic, environmental and safety regulation of the railways sector. It is also expected to work across the borders with Nigeria’s neighbors to ensure harmonization with the country’s rail network.
While state governments will be responsible for the development and deployment of a light rail system within their states, they would however be able to apply for financial assistance from the National Railway Fund. Interested state government will submit their proposals to the Fund, which will make a determination into the amount of money it plans to contribute towards the project. Every submission will be treated on a case by case basis as to determine the economic viability of the project and its likely social and environmental impact. Lagos, Abuja, Calabar. Port Harcourt have already started work on their own light rail system or announced plans to do so.
Once the national rail infrastructure, the train operation and support services have been be taken up by the companies as described earlier, the National Railway Corporation will be wound up as a legal entity and the remaining operational and non–operational assets sold off. The proceeds of the sale will be added to the National Railway Fund. The rolling stock could be sold to the TOCs or other companies and individuals express an interest in those assets.
However, it remains for the incoming APC government to implement or amend these plans.
Railways need huge and sustained investments and with dwindling national revenues, the private sector will have to play a major role in the sector. The big question will be: where will the funds come from, as policy somersaults by government always have the potential to scare away investors.
Some analysts have however pointed to the current partnership with China and Chinese firms to provide the funding an expertise needed to deliver the much needed services at manageable costs.
Nonetheless, conventional wisdom dictates that no amount will be too much to invest, provided the corruption premium is taken out, to rebuild and expand rail services across the nation. Ideally all the state capitals and major cities should be linked directly or indirectly to the national rail network, which multiplier effects will be seen in the agriculture, energy and industrial sectors.
Nigerian wait expectantly for the Muhammadu Buhari administration to demonstrate its resolve to tackling this crucial economic problem.
