…say segmented rail services cannot cope with rising transport costs
Transportation experts have said the federal government needs at least $10 billion to develop an integrated rail network capable of connecting important parts of the country and supporting economic growth.
…say segmented rail services cannot cope with rising transport costsREAD ALSO: Adeleke goes on vacation and orders investigation into Koka royalty dispute
Experts said the current segmented train services operated by the Nigerian Railway Corporation (NRC) were not sufficient to provide Nigerians with the full benefits of rail transport, particularly amid rising transportation costs.
Currently, rail services operate on routes including Lagos-Ibadan, Itakpe-Warri and Abuja-Kaduna, while the Kano-Katsina rail service is also being considered.
Railway sector expert, Pamela Oluwatoyin, said Online tribune that although the construction of railway lines linking major commercial centers such as Ibadan-Abuja, Itakpe-Abuja and Maiduguri-Port Harcourt would require substantial investment, the projects could provide significant economic benefits.
“The cost of building these rail lines cannot be accurately determined without detailed engineering designs and specifications. However, based on the current budget allocation for the ongoing project, it is reasonable to estimate that a minimum investment of $10 billion would be required.”
He said the proposed railway lines had viable commercial potential, adding that “loans raised for the construction of the railway lines can be repaid from operating income, provided that strong governance, financial discipline and prudent management practices are maintained.”
Oluwatoyin, however, noted that part of the revenue generated would be needed for operations and maintenance.
He said: “A robust framework for revenue allocation, financial management and accountability will be essential.”
According to her, the ability to repay construction loans from operating income would depend on the loan repayment period, the income generated and the cost of operating and maintaining the rail system.
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He added that the government should ensure that fares remain affordable while developing an appropriate payment strategy.
Oluwatoyin also advocated for private sector involvement in some aspects of railway operations through concession agreements.
“This approach could improve operational performance, promote accountability and support the long-term sustainability of the rail network,” he said.
Regarding financing, he said that part of the resources currently committed to the construction and recurrent rehabilitation of roads could be redirected towards the expansion of the railway.
According to her, although rail infrastructure requires substantial upfront capital, it generally has lower long-term maintenance costs and could reduce pressure on the road network by shifting more passenger and freight traffic to rail.
“In addition, an efficient rail system can reduce pressure on road networks by shifting a significant portion of passenger and freight traffic from roads to rail, thereby extending the life of road infrastructure and generating broader economic benefits,” he said.
Another expert, Eric Igulla, told the Nigerian Tribune that the government should consider concessioning some rail operations to competent private sector operators.
He said such an agreement could improve efficiency, service delivery and accountability, while making rail transport more attractive to Nigerians.
“Successive governments should prioritize continued investment in the rail sector by allocating funds not only for operational and maintenance expenses but also for the construction of new rail lines.
“Over time, an expanded rail network would help decongest roads, reduce freight and passenger transportation costs, and contribute positively to overall economic growth and development,” he said.
Igulla said current train service agreements had limited economic impact due to their short-distance coverage.
Likewise, Terhemen Ayua called on the Federal Government to declare a state of emergency in rail transport.
Ayua said the rising cost of transport, driven in part by increases in fuel prices, had made rail transport particularly important for low-income Nigerians.
“The government needs to connect all states to rail networks to facilitate transportation. Although the Lagos to Ibadan railway is running and the Abuja to Kaduna railway is running, we need all rail routes to run across the country, not just in some select places.”
Ude Robert, for his part, urged the government to strengthen security around railway infrastructure and operations across the country.
He said: “Safety must remain a top priority within the rail sector. Although rail transportation is generally affordable and convenient, persistent safety challenges can discourage cronyism, reduce public confidence and negatively impact operating revenues. A safe rail system is essential for sustained growth and utilization.”
For his part, the Permanent Secretary of the Federal Ministry of Transport, Engr. Olufunso Adebiyi, said the government was working to connect transport infrastructure with major economic gateways.
Speaking at the recently concluded National Transport Council, Adebiyi said: “Our efforts are focused on connecting transport infrastructure to the nation’s economic gateways. The rail connection to Apapa Port has provided an important basis for efficient cargo evacuation, while the Ministry seeks greater connectivity to Tin Can Island and other strategic ports and industrial locations.
“The emerging development around the Lekki axis and its proposed connections to the national rail network will further strengthen the relationship between ports, industrial hubs and the overall transportation system,” he said.
Experts said sustained investment in rail infrastructure would be critical to reducing transport costs, easing pressure on roads and creating a stronger foundation for economic growth.
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