New impetus for railway developmentBy Sun News PublishingMonday, September 17, 2007

The recent World Bank advice on the rehabilitation of the nations railway has underscored the need to give new impetus to the overall development and modernization of that mode of transportation.

The global financial institution had in its report recommended the initial rehabilitation of the Lagos-Kano and Port Harcourt-Jos-Kaduna rail lines based on economic viability. The report also stated that the rest of the main line would be carried out later.The bank further advised that the East-West line connecting Lagos-Enugu-Umuahia and Calabar-Aba be evaluated for financial viability based on projected traffic volumes and built on Public Private Partnership (PPP) basis.

Other lines considered in the report include the Ajaokuta-Warri standard gauge to Baro, the narrow gauge connection between Apapa and Tincan Island and the one between Port Harcourt and Onne.The report bemoaned the several unsuccessful attempts, which have been made over the years to make the Nigerian Railway Corporation (NRC) function effectively on a sustainable basis.

The views expressed by the bank on the development of the nations railway are not new. We agree with the bank on the dire need to rehabilitate our railways and make them efficient. The opening of the East-West line is welcome but we do not subscribe to the idea that such should be based on purely economic viability.

The East-West line will remove the stress the Lagos-Ore- Benin expressway is being subjected to and will ginger more economic activities in the areas along its axis. We think that the benefits to be derived from the opening of more rail lines in the country far outweigh the economic viability factor being advanced by the bank.

The nation now needs that mode of transportation as an alternative to the road mode, which has become more stressful, hazardous and time-consuming. The rail mode has advantage of mass transit of people and goods over all other existing ones in the country.

Besides the banks counsel, we believe that the time has come for the nation to develop its railway in view of the chaotic traffic situation on most Nigerian roads both within the cities and outside. A good case in point is the chaotic traffic situation in Lagos.

The absence of well-developed railway system might explain the reason why our roads do not last. An efficient railway will boost our economy and image.

It is a matter for regret that past efforts by successive Nigerian governments to modernize our railway have not been successful. Not even the contractual agreements entered into with India, China, Korea and others have helped matters.

The situation on the ground is not encouraging and does not give room for cheer and optimism.For instance, in March 2006, a whopping sum of $40 billion (US dollar) was injected into resuscitating the comatose NRC. The lines then targeted include the East-West line that would link Lagos, Onitsha and Calabar and another from Lagos to Abuja. among others.

In December 2006, former president, Olusegun Obasanjo, flagged off the construction of a modern railway earmarked to pass from Lagos to Kano. The cost of the first phase of that project contracted to China Civil Engineering Construction Corporation (CCECC) was $8.4 billion.

The contract covered among others five segments of Lagos-Ibadan (181 km), Ibadan-Ilorin (200 km), Ilorin-Minna (270 km), Minna-Abuja-Kaduna (360 km) and Kaduna-Kano (305 km).The non-execution of these laudable projects is reflective of governments lip service and insincerity to the development of the railway.

We suggest that the present administration, which has rehabilitation of decayed infrastructure as one of its seven-point economic agenda should develop and modernize the rail mode of transportation. In doing this, the government should use local and foreign expertise and involve integrative approach in developing the sector.

Nigeria: Railway Modernisation Project Shouldn't Die Daily Trust (Abuja)

OPINION15 November 2007Posted to the web 15 November 2007Tunde Ipinmisho

If the body language of the Yar'Adua administration is anything to go by, then the ambitious 25-year railway modernisation initiated by the immediate past administration is in grave danger. Significantly, no mention of it was made in the N2.4 trillion 2008 budget proposal presented to the National Assembly last week by President Umaru Musa Yar'Adua.

Even before the President went to the National Assembly, the signals from the government about the project had been at best worrisome. The problem with the project seems to largely be with the funding mechanism proposed by Obasanjo. The project was to be financed through revenue from excess crude and a $1 billion Chinese loan. With its oft-stated commitment to the rule of law, it is hardly surprising that the new administration is wary of using the excess crude window, because such a step would contravene the letter and spirit of the constitution. That leaves government with the Chinese loan option which would seem to have its own challenges. Finance Minister, Dr Shamsuddeen Usman said in Washington, DC, United States recently that the government was not persuaded that the terms of the loan best serve Nigeria's national interest.

The Obasanjo administration initiated the multi-billion dollar railway modernisation project in the dusk of his eight-year administration. Why it waited that long to commence such a visionary project is a matter for conjecture. What is not in doubt however is the project's huge potential to move the economy forward. A modern railway system is a critical necessity for Nigeria's accelerated development. Indeed, it is doubtful if the current administration can achieve its objective of having Nigeria listed among the world's 20 most developed economies by the year 2020 without first giving the nation a modern railway system.

A check of the current 20 most developed economies will show that one feature they all have in common is a virile, working and modern railway system. And the benefits of such a system are quite obvious. No means of transportation known to man has comparable capacity for moving large numbers of people as the railway. This is important for a huge nation like Nigeria where people cover long distances on a daily basis. Also, the unique capacity of the railway to knit together the bonds of national unity is instructive for a nation in Nigeria's peculiar circumstances. Cities like Minna, Makurdi, Zaria and many others are essentially railway towns which owe their emergence and urbanisation to the railway.

Since the virtual collapse of the Nigerian railway system set in, thousands of workers who formerly earned their living working for the system have been thrown into the job market while the unpaid pension arrears of retired railway men have remained a national embarrassment. The railway modernisation project as conceived would open another window of employment opportunities for the nation's large army of unemployed youths. The multiplier effect of a modern railway system on the other sectors of the economy is immense.

It would open up many communities which at present are inaccessible by any means of transport. This would invariably take development to many rural communities. It is estimated that up to 60 million tonnes of goods are transported by road in Nigeria yearly. Ours is perhaps the only country its size and with its endowment that relies exclusively on roads for the movement of such volume of goods. It is little wonder then that our roads are in such a parlous state. Government has had to commit billions of naira to the maintenance of the road network, which is soon back to its poor state because of the extreme pressure to which it is daily subjected. A modern railway system will save Nigeria that headache as well as free the huge national resources currently committed to road rehabilitation and reconstruction for use in meeting other pressing needs. It is also important to consider the human cost of the chaos in our current transport system. Thousands are killed yearly in needless road accidents while armed gangsters hold sway on many of the highways making road travel a huge risk that many take daily. A working railway system would reduce such dangers to the barest minimum.

Long before becoming an oil and gas nation, Nigeria enjoyed worldwide renown for the quantity and quality of its agricultural produce. It is generally agreed that the way to the nation's desired future is the revival of its agriculture. With many of the agricultural communities not having access to major markets, produce is wasted and farmers are discouraged from increasing their production. In many advanced economies, agricultural processing facilities are located close to the railway system such that both primary and finished products are moved with ease. If the nation is serious about reviving its agricultural sector, then it must take the bold steps of restoring life to its railways system. That way, the nation may well be on the way to achieving self-sufficiency in food production.

Tourism is another major reason the nation needs a modern railway network. Recently, the government unveiled an ambitious policy which envisages that tourism would in the next few years become a major foreign exchange earner for the country. Already, smaller and less-endowed countries like Gambia, Ghana, Kenya and Senegal are reaping fortunes from tourism. Nothing stops Nigeria from tapping into this goldmine, but it must first develop a safe, fast and comfortable means of transporting tourists who are already used to certain minimum standards and to who anything less would not be attractive. The railway readily comes to mind in this regard.

Some have argued for the rehabilitation of the existing rail lines as a way of meeting the nation's needs. That would probably not serve any useful purpose as the existing system is not only outdated but dysfunctional. It cannot serve the needs of the modern economy that Nigeria aspires to be. The much that could be suggested concerning the system is for government to, as has been canvassed by Transport Minister, Dieziani Allison-Maduekwe, carry out emergency remedial work on it so that it can offer skeletal service while the new system comes on stream.

No nation has ever developed without a good railway system. The railway modernisation project is a major step towards Nigeria's attaining the status of a developed nation that she aspires to be. Already, an $8.3 million contract has been awarded under the 25-year strategic railway development project. The contract was awarded to Chinese Civil Engineering Construction Company last year as a turnkey package entailing the design, engineering, construction and maintenance of about 1,315 kilometres of standard gauge, double track railway line from Lagos to Kano. The second phase involving Maiduguri-Lagos line was to follow.

Government may have a point in pausing to take another look at the details of the project as it is currently doing through a presidential review committee. The aim of such review must however not be to kill the project but to resolve all outstanding issues in the nation's best interest. The nation's landscape is dotted by many strategic and well-intentioned projects that have died midway. We can all still recall the hasty abortion of the Lagos metro line project by the military in 1984. With the acute development challenges facing Lagos today, it has become clear that the cancellation of that project was not well considered. Certainly more than it did in 1984, Lagos today needs a metro line to move the teeming masses of its commuters daily. Unfortunately, the state of the economy and the prohibitive cost of the project now make it almost impossible to contemplate a return to it.

Considerable work has been done on the first phase of the railway modernisation project. The contract for it has already been awarded and terminating it at this stage would entail huge losses for the nation. Aerial survey has been completed, design is ongoing and mobilisation for construction's in full force. The question is not whether Nigeria needs a modern railway system. That seems to have been settled by what is happening elsewhere even in Africa. South Africa and many of the countries in North Africa have long set up their own modern standard gauge railway systems.

If there are challenges with the terms of the Chinese loan, government should return to the negotiation table with them and resolve such challenges. Given the current size of the nation's budget, it may be difficult to expect that the funding for the projects would come from within alone. Happily, there are many other sources abroad that the government can consider including the private-public option that should be explored. The Yar'Adua administration owes the nation the patriotic duty of delivering this project. The present generation and posterity will remember it if it does not allow this opportunity slip away from our hands.

Mr Ipinmisho, a former editor of the Sunday Times, lives in Abuja.

20/11/2007 03:10 LAGOS, Nov 20 (AFP) Nigeria turns to Asia to revamp ailing railway system Once the pride of the nation, Nigeria's railways, like much of the rest of the infrastructure in the west African country, have slowly crumbled into disrepair.

The Nigeria Railway Corporation (NRC) has enlisted the help of China and South Korea to revamp its network.

None too soon. By train it takes two hours to cover the 32 kilometres (20 miles) of decrepit track linking Ijoko to Lagos, the country's commercial hub.

On the plus side it costs just 60 US cents (40 euro cents). And since the bus takes twice as long and costs six times as much, the poor still commute by train.

Chugging along at snail's pace should soon be a thing of the past. NRC spokesman David Ndakotsu told AFP the two Asian countries will upgrade the rail system in four phases over a total of 20 years and at an estimated cost of 35 billion dollars (23.9 billion euros).

In the first phase of the project, the China Civil Engineering Construction Company (CCECC) has started rebuilding the existing network between Lagos and northern Nigeria's commercial hub Kano to standard gauge for 3.5 billion dollars (2.39 billion euros).

CCECC President Lin Rongxin said 50,000 Nigerians would work on the 1,315 kilometre line that he said would be "a design, construct and maintain project."

China recently granted Nigeria a 2.5 billion-dollar loan, much of which is expected to be used in the project, he added.

The second phase, to be handled by South Korea, will include a link between the southern oil city of Port Harcourt and Jos in central Plateau State.

South Korea will offer long-term, low interest commercial loans to Nigeria in exchange for stakes in an operational oil field here, officials said, without giving further details.

"Everyone has realised that the Nigerian railway needs a new direction. We have to restore the industry to its old glory," Ndakotsu told AFP.

He said the first attempt by the Chinese under the regime of military ruler Sani Abacha in the 1990s to revamp the under-performing railway system was short-lived.

"They brought 50 locomotives as part of the deal, but unfortunately, all of them broke down after a few months of operation," he said.

The NRC operates a network of 3,505 kilometres of single track lines, all 1,067 mm gauge, covering nine of the country's 36 states, and has 200 locomotives, most of which have broken down.

Ndakotsu said the firm has gone into bankruptcy more than once in the last 20 years because of poor management, neglect and corruption. He cited in particular the absence of maintenance of either track or rolling stock and overstaffing.

NRC's marketing director Felix Erondu told AFP that by 2005 passenger transport had been reduced to four departures weekly from Lagos, of which two went to Kano, one to Jos in central Plateau state and one to Maiduguri in the far northeast.

But NRC is now reduced to just the Lagos to Ijoko line. Long-distance service has ground to a halt all together. Officials say the railway tracks have been washed away by the rains.

Travel even on the Ijoko-Lagos leg can be fraught with difficulty.

"I have been waiting for more than two hours. I cannot afford to miss this one," Emmanuel Omitogun, a 50-year-old carpenter, told AFP at Ijoko station.

He said he had failed to get a seat on either of the previous two trains as both had been full.

He had struggled to get a seat on the first of the two but had been pushed off by another passenger.

The second train was delayed 30 minutes while engineers fixed a fault.

Esther Ibironke, a 40-year-old civil servant leaves home at 06:00 (05:00 GMT) am every day to report for work in Lagos.

"I join the train because it is cheaper and more convenient. Besides, it is time-saving. I spend less than two hours to get to .. where I work," she told AFP.

As she spoke, the train driver blared the horn and those who had failed to get seats scrambled up onto the roof or hung precariously onto the doorways.

"I am taking a risk by hanging, but there is no alternative," university student Dominic Atuegbu told AFP.

"I have to be in school by noon to defend a term paper. A bus ride is not the best option on a work day like this," he said, dipping a hand into his pocket to pay ticketing officer Ayo Owolabi.

In so doing, he lost his grip and almost fell off.

"That man almost lost his life," Owolabi said. "We have warned them against hanging and jumping into a moving train. They will not listen," he said.

He said dozens lose their lives every year and many more are maimed as a result of this practice.

"Not even a jail term, or fines can deter them," he said.

Presidency, ministry's row stalls $8.3bn railway contract Written by Chris Ochayi Friday, 07 December 2007 Unresolved disagreement between the presidency and the Federal Ministry of Transportation has stalled the take off of the $8.3 billion contract awarded for the construction of modern railway from Lagos State to link Kano State in the North West zone. The contract was awarded to a Chinese firm, CCECC, by the immediate past President Olusegun Obasanjo, to which a 3% of out of the 13% mobilisation fee running to the tune of $250 million was paid to the firm in March 2007.

At the signing of the contract between the Federal Government and the CCECC, former President Obasanjo removed the Railway Modernisation Project, which hitherto was an agency under the Ministry of Transport, and placed it under a Special Project Unit in the Presidency.

Obasanjo subsequently, drew down the $250 million from the excess crude accounts, and paid the firm as part of the 13% ($1.13 billion) mandatory mobilisation fee.

The fund paid to the CCECC was allegedly not appropriated for in the 2007 budget, even as the former president approached the excess crude account to finance the project, which according to him, was very instrumental and significant to the development of the country.

But what appears to be an end to the project execution came into open shortly after the present administration of Alhaji Umaru YarAdua presented the 2008 budget proposal to the joint session of the National Assembly in which allocation for the Railway Modernisation Project was conspicuously missing from the list of projects under the Ministry of Transportation or special project unit in the presidency.

President YarAdua, according to impeccable presidency source, has vowed to strictly observe due process and rule of law, hence he did not want to have anything to do with funding of contracts, which are not approved by the National Assembly, be it Special Project Unit under the presidency or not.

According to the source, the truth of the matter is that Mr. President is interested in the immediate take off of the project. Mind you the man believes in the rule of law and I cant see a YarAdua president going out of his way to fund the project from the source that is not recognised by the law.

Irked by this development, members of House of Representatives Committee on Transport paid an on-the-spot assessment visit to the equipment production site of the construction firm, located at Idu Karimu, an outskirt of the Federal Capital City, to ascertain how the firm utilised the $250 million paid to it by the immediate past administration about nine months ago.

Reps assure on $8.3 billion Lagos-Kano railway projectBola Badmus, Abuja - 02.01.2008

HOUSE of Representatives has given assurance that it will pursue the completion of the $8.3 billion Nigeria Railway Modernisation Project by making funds available for it in the New Year.

Committee on Land Transport of the House gave the assurance when its members visited the equipment construction site of the project at Idu-Karmo area of Abuja.

Chairman of the committee, Honourable Abiodun Adesida, gave the promise against the backdrop of poor funding of the project which was commenced on the eve of the departure of former president, Chief Olusegun Obasanjo.

The Obasanjo administration had in March 2007 awarded the contract for the construction of a modern railway from Lagos to Kano to the contractors, China Civil Engineering Construction Corporation (CCECC), but $250 million was paid to them from the excess crude accounts, being only 3 per cent out of the 13 per cent mobilisation fees required.

Adesida, who commended the contractors for their commitment, stressed that the project could not be completed on time if more funds were not released. The chairman, who pointed out the importance rail transport system to the countrys economy because of the volume of goods it carries, said that the condition of roads could be made better if the rail transport system was rehabilitated.

We shall do all in our power to assist government and Nigerians achieve the dream of enhanced transport sector through realising the goal of attaining a double tract rail, Adesina assured. He, however, called on both the Special Projects Unit (SPU) under the Presidency and officials of the Ministry of Transport to harmonise their positions on the project to ensure that funds were made available under the 2008 Appropriation.

The committee boss also counselled the acting Permanent Secretary in the office of the Secretary to the Government of the Federation (SGF), Rabiu Abubakar, to ensure that the project was returned to the Ministry of Transport in the next few weeks so that some funds would be allocated to it in the 2008 budget.

Poor Funding Stalls Abuja Railway Project - Modibbo Daily Trust (Abuja)NEWS7 February 2008 Posted to the web 7 February 2008 Abuja

The 2008 appropriation bill provides for only N1 billion out of the N110 billion required for the Abuja railway project, the FCT Minister, Modibbo Umar, said on Tuesday.

Umar said this when he received members of Abuja Chamber of Commerce, Industry, Mines and Agriculture (ABUCCIMA), led by its first vice-president, Mr Dele Oye.

He said the situation did not augur well for the successful execution of the project, aimed at promoting commerce in the territory.

He said an effective transport system was a key factor for increased commercial activities.

Umar advised the chamber to change its name from ABUCCIMA to Abuja Chamber of Commerce.

He said with the change of name, the chamber would be in a better position to re-evaluate its activities.

The minister said this would eventually led to the channelling of more resources to commercial activities by the chamber and make the organisation more successful.

"If you concentrate on commerce, just like it is done in some other countries, you will be more focused and achieve more," Umar said.

The minister said there was a need for quarterly meetings between the chamber and the FCT administration to chart the way forward for commerce in the territory.

"If you plan a trade fair and you do not have innovations to showcase, then there is no need for the fair," he said.

Earlier, Oye said they visited the minister to solicit FCTA's support for the chamber's trade fair, scheduled for May.

"The chamber's budget for the fair is N27 million and the chamber proposed that the FCTA will bear 50 per cent of this budget," Oye said.

He also solicited the support of the FCTA in the construction of an international trade fair complex in the FCT.

Oye urged the minister to ensure that contractors and prospective businessmen in the FCT registered with the chamber before carrying out their businesses.

"We are already collaborating with the various embassies in Abuja as applications for business visas require the chamber's recommendation before they are granted," Oye said.

Railway Resumes Services in North-East Daily Trust (Abuja)NEWS10 February 2008 Posted to the web 11 February 2008

Nigeria Railway Corporation (NRC) is to re-open its inter-state train service to the North-Eastern part of the country next week.

Mr Jetson Nwankwo, the corporation's Acting Managing Director, told the News Agency of Nigeria (NAN) that the development was sequel to the just-concluded repairs of the washed-out tracks in the area. He said in Lagos today that "our target now is to start serving the Borno axis which used to contribute 33 per cent of our total revenue.

"We are also trying to begin transporting Ashaka Cement products from Gombe state to Jos, Kano and Aba," Nwankwo said.

He said that the corporation's focus was to give its District Managers a chance to excel.

He said that arrangements were on to enable the corporation haul goods for manufacturing companies across the country.

He said that the NRC would soon sign a Memorandum of Understanding with the Flour Mills of Nigeria on a collaboration to enhance the corporation's efficiency.

Nwankwo said the corporation would soon take delivery of 30 new locomotives.

FG intensifies effort on railway revitalization Monday, Feb 11, 2008 Mrs Diezani Alison-Madueke, the minister of transportation, said in Abuja, that the Federal Government was making concerted effort to revitalise the railway system.

Alison-Madueke said this at a stakeholders forum on Road Maintenance Concession organised by the Federal Roads Maintenance Agency (FERMA).

Over the next three years, we hope to put in place a quality railway system which will enable us transport heavy cargo across the country.

This will reduce the number of trucks on the roads, thereby extending their life span, she said.

The minister noted that most countries that had good road network had effective railway system in place.

So I assure Nigerians that they will soon see a good railway network, Alison-Madueke said.

Speaking on roads, the minister explained that they formed 90 per cent of the transportation system and were, therefore critical to achieving Mr Presidents Vision 2020 project.

According to her, road construction and rehabilitation were capital intensive and governments commitment on road projects was enormous.

The minister stated that it was against this backdrop that government decided to partner with the private sector under the Public Private Partnership (PPP), scheme.

She added that the resolve of FERMA to go into road concession was therefore the beginning of a sustained synergy between the public and private sector in providing good roads.

She said her ministry was preparing some roads across the country for rehabilitation and modernisation under the design.

Alison-Madueke said the forum was therefore an avenue to showcase the road sector to banks, private entrepreneurs, professionals and other stakeholders.

Earlier, Mr Olubunmi Peters, the managing director of FERMA, had said that the objective of the forum was to sensitise all potential concessionaires and investors on the best practices in road concession.

Following severe damage caused by heavy rains, repairs costing 9m naira are being made to the standard-gauge line linking Nigeria's Ajaokuta steelworks to the port of Warri.

RGI

There appears to be some terminology confusion here- About $3 billion will be required for the construction of a light rail system to improve the traffic situation in Lagos state. The acting Managing Director of the Nigerian Railway Corporation (NRC), Mr. Jetson Nwankwo, disclosed this to the News Agency of Nigeria (NAN) on Sunday in Lagos.

Nwankwo said the project might be financed either by the World Bank or the African Development Bank (ADB) in collaboration with the federal and Lagos State governments.

The NRC chief put the cost of constructing a kilometre of modern rail at between $3 million and $6 million, depending on the terrain. He, however, said there was nothing wrong in sacrificing such an amount for a state like Lagos, considering its role in the nations economy.

If you need to pull down some structures and pay compensation before construction, pull them down. Nothing is too much to sacrifice for the traffic problem in Lagos.

If other countries are having underground metro line system, why cant Nigeria do it? We have to start from somewhere. For instance, South Africa, because of the 2010 World Cup games, had built an underground train system to handle envisaged high traffic at the stadium, he said.

Friday, 14 March 2008 According to a statement by Nigeria Railway Corporation (NRC) managing director and chief executive officer Mazi Jetson Nwankwo, the General Electric company (GE) has entered into a memorandum of understanding (MOU) with the corporation for the upgrading of diesel locomotives.

Flour Mills PLC has agreed to meet the cost of the first deposit for modernising five locomotives, provided these units are dedicated to their traffic, and they guarantee they will rail two million tons annually. Dangote, Peugeot and others are being approached with a view to their underwriting similar arrangements.

NIGERIAN MASS TRANSIT Friday, 14 March 2008 The Nigeria Railway Corporation (NRC) has signed a memorandum of understanding (MOU) with the Cross Rivers, Delta and Kaduna States on the establishment of mass transit rail transport systems. The corporation is ready to partner other states in the country in similar enterprises, managing director and chief executive officer Mazi Jetson Nwankwo announced at Zaria while touring the Northern District on 1 March. The benefits would be twofold, he said: transport problems in the states would be eased and the NRCs revenue base would be broadened.

According to the Daily Trust (published in Abuja), Nwankwo noted that if each of the 36 states could demonstrate interest in the development of the rail system in their areas, the network in the country could be substantially enlarged. "Cross Rivers State has shown interest, he was quoted saying. They want to put in place a mini rail service from Margaret Ekpo International Airport to the Tinapa Resort Centre. An MOU has already been signed in this regard. Delta State wants to build a 300 km rail network. Kaduna State has also shown interest.

20 Mar 2008Keep it simple

NIGERIA: Following the collapse of the agreement for Chinese engineering companies to fund as well as build its ambitious standard-gauge rail network, the Nigerian government has been looking for alternative sources of finance.

But a recent approach to the World Bank seems to have come away empty-handed. The bank's advisers suggest that the first priority should be to reconstruct sections of the existing 1 067 mm gauge Western and Eastern main lines leading inland from Lagos to Kano and Port Harcourt to Kaduna. With this completed, the Bank says the 'threshold traffic density for economic viability' could be reached by 2010. 'Rehabilitation of the rest of the main line should be carried out a few years later, or using second-hand materials so that investment per route-km is substantially lower.'

If new lines are to be funded through a PPP, the Bank suggests that an 800 km east-west route from Lagos to Enugu and Umuahia 'should be evaluated for financial viability'.

We will be interested to hear how this welcome outbreak of common sense is received in Abuja.

FG Approves Monorail for Mma This Day (Lagos)NEWS9 May 2008 Posted to the web 9 May 2008 By Chinedu EzeLagos

To beat undue delay occasioned by traffic snarls on the road linking international terminal with the domestic terminal of the Murtala Mohammed Airport, Lagos, the Federal Government has in principle approved the construction of monorail by Bi-Courtney Aviation Services to enhance passengers' movement.

This was disclosed by the Managing Director of the company, Alex Van-Elk, who said that the Nigeria Civil Aviation Authority (NCAA) has given approval for the project, which would be subjected to other approvals like environmental impact assessment and the pathway location before construction.

Bi-Courtney which is managing the new domestic terminal known as MMA2 believes that the monorail will put an end to complaints of passengers who miss their flight while in the traffic jam on the road between the two terminals.

Van-Elk who said that Bi-Courtney was eagerly awaiting the final approval for the construction of the rail projected that it would be completed within the next three years.

"We want to make Murtala Muhammed Airport a major hub; we are already consulting with the Federal Airports Authority of Nigeria (FAAN) and the NCAA. They have to give us the go ahead and we will swing into full action".

He said that in less than one year of operation the new terminal has recorded about 1, 140, 000 passenger movement through the terminal and predicted that the figure would be doubled when all the airlines move their domestic operation to the terminal.

In response to the expected growth, Van-Elk said that Bi-Courtney has already started the expansion of the terminal, projecting that about 6 million passengers would be passing through the airport in the next few years.

"I can inform you all that about 90,000 to 95,000 passengers pass through this airport monthly and they have been commending our operations".

He also said that public, private partnership is the key to infrastructural development in airports, noting that government has realized that airport is no more social amenity but business enterprise, which must be invested in and which is also capital intensive that needs the private sector's input to thrive.

"There are a lot of efforts to put a terminal up to shape. In my opinion, the government can spend the resources on better things.

Talking of Nigeria , housing, education, energy are more pressing issues for government. The other thing is that the company is coming on a commercial basis with a lot of know-how. If you don't know your job, you will never run a profitable place. For airport, a specialist should come in".

On security at MMA2 he said, "The airlines have safe and efficient counters; there is no need to have long queues at the checking areas. There is no need for any x-ray machines for the carry-on luggage because we have four scanners that can do all the work. So, I think we can call this by far, the most passenger friendly than Heathrow Terminal 5 at the moment".

NIGERIAN WEST-EAST RAILWAY Friday, 13 June 2008

According to the publication Leadership (published in Abuja), construction of the new West-East railway across the Niger Delta region will link several states in the east of Nigeria. Larry Esin, managing director of Rail-net Incorporation, which is handling the project, is quoted saying that the 1,500 km line from Lagos is to cost an estimated $US5 billion and will terminate eventually somewhere at Ibeno in Akwa Ibom State.

Though the federal government is deeply involved and interested in ensuring that the project sees the light of day, it would be self-financing on a Build-Operate-Transfer basis which will be run under a Public-Private Partnership (PPP) arrangement in a deal that will see it being operated for between 28 and 30 years before finally handing it over to the federal government.

Leadership credits Esin with building the Obudu Cattle Ranch cable car in Cross River State, a tourist's delight and first of its kind in Nigeria,.

REVEALED: N86.3bn spent on railway project - During Obasanjos administrationTaiwo Adisa, Abuja - 25.06.2008

THE government of Chief Olusegun Obasanjo spent N86.29 billion on the moribund railway project, it has been revealed.

However, the countrys railway system, despite this huge sum, has continued to be in comatose.

The Auditor-General of the Federation (AGF), Mr. Robert Ejevami, said on Tuesday in Abuja that there were discrepancies in the N86.29 billion railway modernisation project, adding that while it was awarded for $250 million, $175 million was paid into the companys foreign account while the balance of $75 million was paid into its Nigerian account.

The AGF made the revelations while appearing at the public hearing into the management of funds allocated to the Transport and Works Ministries between 1999 and 2007.

He said that another $250 million and N13 billion were also paid to the same contractor from the excess crude oil account, adding that the Federal Road Management Agency (FERMA) got N442.229 billion out of a budget of N566 billion.

The AGF further said: From the record from FERMA, it conceived 245 projects out of which 114 contracts have been completed at the cost of N415 billion. From the audit query by the FERMA internal auditors, N22 million was withdrawn in December 2007 without voucher backing it up. Such practice was against extant financial regulation.

The AGF said that another N67 million loan was approved by the last administration. The loan was yet to be paid.

He stated that in view of the anticipatory approvals, the government placed an embargo of N50 billion on the Ministry of Works. He, however, stated that he did not know whether the N35 billion had been returned to the Natural Resources Development Fund.

Ejenavi also added that a total of N2.2 billion had been spent on the Rehabilitation Project of the Nigeria Railway Corporation (NRC) between 1999 and 2008, adding that the shoddiness of the award process ensured that even the NRC on which behalf the contract was being executed was not aware of the payments.

He said: The office of the Auditor General has no power to audit parastatals which made it very difficult to ascertain the level of compliance with extant financial regulations.

TSAUNIN-KURA-KADUNA TRAIN Saturday, 28 June 2008

The Kaduna State government in the northern part of Nigeria has in collaboration with the Nigerian Railway Corporation (NRC),successfully introduced an intra-city mass transit train (MTT) running from Tsaunin-Kura to Rigachikun in the Kaduna metropole.The train was officially commissioned by state governor Namadi Muhhammed Sambo on 30 May 2008 at Kaduna junction station.

In a communiqu to Railways Africa, Ogunsegun O Olusola -railway district manager (north) at Zaria Nigeria - writes:Since the date of launch, the train has been witnessing considerable patronage and is making waves within and outside the state. The train is succeeding in reducing traffic congestion on the roads, reducing man hours' loss, helping in poverty alleviation and employment programmes of the state. As a measure of sustaining this rail service, an agreement was signed by both Kaduna state government and NRC. The state government in collaborative manner is still proposing to go into partnership with NRC in line with the public-private partnership philosophy of the Nigerian Government.

NIGERIAN RAILWAY REHAB ABANDONED Friday, 04 July 2008

The Nigerian Senate 12-man ad-hoc committee set up recently to probe how billions were allocated to transport projects rail, road and air - since 1999, with little if any sign of visible achievement or improvement, has had its hands full (according to the Daily Trust, published in the capital, Abuja). A growing list of top government officials both past and present has been invited to explain their part in the sorry state of affairs, but those who have appeared before the committee to date do not seem to have made much in the way of a favourable impression. All former ministers of works, transport and aviation during the administration of former President Olusegun Obasanjo are supposed to attend, at least one of whom - Dr Hakeem Baba Ahmed has a warrant out for his arrest for reportedly ignoring the invitation, the Daily Trust reports. Ahmed, formerly Permanent Secretary in the Works Ministry, is currently Permanent Secretary of the Presidency. Available records, the paper writes, show that government released over N100 billion [about R6bn] to the ministry during his tenure.

Also yesterday [27 June], former Minister of Works Chief Cornelius Adebayo told the Senate panel that he had lost his memory on how over N50 billion released to the ministry during his time was spent.......[he] could not answer any question put to insisting that he forgot everything.

Surveyor-General Austin Njepueme reportedly told the committee that prior to the year 2006, no roads constructed in the country had survey plans.

Accountant-General Alhaji Ibrahim Hassan said his office had released a total of N967 billion (about R63bn) to successive ministers in charge of transport since 1999 of which N124 billion went to the railways but he was contradicted by Director-General of the Federal Budget Office Bright Okonkwo, who said the correct total was N688.9 billion. Commenting on the difference of almost N300bn between the two figures,, Minister of Finance Dr.Shamsudeen Usman told the panel he had wanted the two different versions of the official records of expenditure in the transport sector to be harmonised before being presented, but it is unfortunate that that did not happen.

Chairman of the Senate panel Senator Heineken Lokpobiri said there is need to dig deep to ascertain the actual amount spent on railway rehabilitation.

Current Minister of Transportation Mrs Diezani Alison-Maduekwe was unable to explain her authorisation of the withdrawal of N30.9 billion from the Central Bank of Nigeria (CBN) within the last four days of 2007. In the words of the Daily Trusts Abdul-Rahman Abubakar : Obviously struck by the revelation, the minister developed a running stomach and had to excuse herself from the hearing. The Minister however made an important revelation when she said the $US8.3 billion Railway Modernisation Project was awarded to the CCECC of China without engineering design. Nigeria has so far paid $250 million for the project which has been abandoned. The minister said President Yar'adua is presently not sure of how to fund the project while CCECC is demanding oil blocs in return for its counterpart funding which government is not ready to provide.

On 30 June, Governor of the Central Bank of Nigeria Professor Chukwuma Soludo and the Minister of Transport were summoned to make reconciliations on the alleged disbursement of N30.9 billion in the last week of 2007.

NIGERIAN STATES MUST CHIP IN Friday, 04 July 2008

The federal government has allocated close to zero capital to railways in the current years budget, Nigeria Railways Corporation (NRC) managing director Mazi Jetteson Nwankwo told the press on 18 June, during a district management meeting in Enugu.

To sustain the provision of rail services, he said, NRC is reaching out to state governments for assistance. In terms of such partnership, Nwankwo explained, the states are expected to provide wagons, coaches and locomotives. States that have already committed themselves to help with running intercity rail services are Kaduna, Cross River, Delta, Benue, Lagos and Adamawa. The Benue, Niger and Kano States have asked NRC management to forward proposals.

Quoted by This Day (published in Lagos), Nwankwo said that Kaduna State has already indicated readiness to go into phase 2 of the partnership which may include extending railway services to other states.

NRC has to work hard to salvage the situation, the managing director conceded. He said the management team must be diligent, pro-active, honest, transparent, willing and ready to put in more hard work that will make the difference between success and failure.

NIGERIA ACQUIRES BREAKDOWN GEAR Friday, 11 July 2008

The News Agency of Nigeria (NAN) quotes Nigeria Railway Corporation (NRC) managing director Jetson Nwankwo announcing the acquisition of a 60 tonne Lucas Hydraulic Derailment recovery unit. "It will now be easy to rerail in a few hours with the new equipment and with just one man. This is against the previous manual system which required many men and numerous man-hours," Nwankwo explained to the reporter.

Three Nigerians are currently in Germany, where they are being trained in the use of the equipment. At present only one unit has been obtained, due to the cost, but it is hoped to have others in due course

Railways and public expenditure By Punch Editorial boardPublished: Tuesday, 15 Jul 2008

Against the backdrop of the failure to provide for rail development in the 2008 budget, the Federal Government should come out with a clear agenda on how to revive the moribund transport mode. The Olusegun Obasanjo administration had conceived a 25-year rail vision to reduce excessive use of the roads. Part of the plan to actualise this vision was the award of a rail modernisation contract to a Chinese firm, China Civil Engineering Construction Corporation, at a cost of $8.3bn. But recent media reports indicated that this project was inflated by about $5.8bn.

In spite of the huge amount of money sunk into rail projects, the system remains a far cry from what it should be. From over 11 million passengers that used the rail system in 1964, the number of passengers plunged to about one million in 2003. This mode of transport, which helped to carry three million tonnes of freight in 1960 has declined dismally in importance. It now carries less than 10,000 tonnes per annum. It is sad that the nation has failed to expand or even maintain the rail infrastructure inherited from the colonialists.

The prostrate state of the railways has impacted negatively on the economy. Due to constant use, the roads are always in a state of disrepair, as heavy-duty vehicles and trucks carrying different types of goods destroy them soon after repair. Indirectly, this shoots up transport fares and freight charges because there are no functional alternatives to road transportation in the country. The high transport cost translates into high prices of goods.

As with many sectors of the economy, the comatose nature of rail transportation is due mainly to corruption. Contracts were awarded and mobilisation fees paid, but some of the contractors failed to carry out the jobs. Testifying at a recent Senate public hearing on Transportation, the Auditor-General of the Federation, Robert Ejenavi, reportedly said that a total of N124.9bn was spent on rail projects from 1999 to 2008. He cited a particular contractor who was mobilised with $250m, but curiously, $175m was paid into his foreign account while the balance of $75m was paid into his Nigerian account.

Another contractor was paid $1.5m, but there was no record in the Ministry of Finance indicating that the money was disbursed. Even the Nigerian Railway Corporation was said to be unaware of the payment. Owing to the abysmal failure of huge public investments to salvage the sector, it has been suggested that the rail system is being deliberately sabotaged by powerful men in haulage business who have hundreds of tankers and trailers.

But the main problem is the poor integrity of public expenditure, which is often seen by public office holders and cronies as another opportunity to extract rents and patronage. The existence of the Railway Act of 1955 has ensured that rail business is run as a federal monopoly. This Act precludes private investment in the rail system. In 2000, a Canadian firm indicated interest in building the Lagos-Abuja rail route. The FG scuttled this genuine intention. Yet, experience has shown that government hardly runs businesses effectively.

As a first step towards resuscitating the rail sector, the National Assembly should repeal the Railway Act. In most advanced economies, monopolies have effectively been checked through liberalisation.

In the United Kingdom, for instance, private companies handle rail transportation on franchise basis. Any company that wins the franchise for any route takes full control of that route for a given period. Through private sector participation, a 365-kilometre high speed rail has been built across the straits in Taiwan. The new rail infrastructure enables express trains to travel from Taipei to Kaohsiung in about 80 minutes, as opposed to about five hours by conventional rail.

The surest and swiftest way to have an efficient rail system is to open up the sector to competition and private investments.

NIGERIAN RAIL TRANSPORT REASSURANCE Saturday, 02 August 2008

Dr Aliyu Modibbo Umar, minister of Nigerias Federal Capital Territory Administration (FCTA), has vowed to realise the federal government dream of putting workable rail transportation in place in Abuja during his administration, writes Umoru Henry in the Vanguard (published in Lagos).

The minister, who noted that the move would help ease the traffic congestion presently being experienced in the Federal Capital Territory, promised that the only option left for the administration now is redoubling its efforts towards the realisation of the set target.

The minister, Henry wrote, recalled that one of the reasons for Abuja replacing Lagos as the capital of Nigeria was to escape the problem of traffic congestion.

The concept on which Abuja was created can only be considered successful, the minister was reported saying, when the system is made to work effectively. This applies especially to the provision of basic infrastructure well as a good transportation network devoid of congestion.

He said: "we will do all it takes to actualise rail transportation during the life of our administration even if it means with only one lane to the glory of God and benefit of the humanity."

(One lane presumably means a single track railway, as distinct from the ambitious 1,126 km Lagos-Kano double line envisaged by former president Obasanjo. - editor)

Ilukwe blames government for collapse of Railway Corporation

Chief Greg Ilukwe, former Sole Administrator of the Nigerian Railway Corporation (NRC) has attributed the near collapse of the corporation to the short- sightedness and unnecessary interference of government. Ilukwe told the News Agency of Nigeria (NAN), in Lagos that what the corporation needed now was complete reformation after 100 years of existence.

"I think if the government wants the railway to grow, it will grow but it must start by appointing people who know about railway to its highest echelon,'' he stressed. He said that the railway as the most important sector in the transport system had suffered neglect from all facets.

"Today, there is no representative of the corporation in the Ministry of Transportation so how does one expect the corporation to progress," he said.

"I think the government needs to take an objective decision to move the sector forward,'' the former railway boss said. According to him, a minister for transportation is supposed to know all aspects of transportation, including the railway but noted that the reverse is the case in Nigeria.

The former sole administration compared the ailing NRC to a patient who visits the doctor and receives same medication without getting better, adding: "the NRC needed structural reform."

``Between 1999 to 2005 the workforce of the NRC has been reduced to 6,500 and that has not improved or revamped the sector and so, the government needs no further retrenchment," he emphasised.

He urged the current government to pursue the plans made by former President Olusegun Obasanjo to revamp the sector, adding: ``as a railway man, the government should listen if I say anything."