Amaechi Expresses Concerns over Non-Utlisation of Warri, Abuja Rails for Cargo Movement
Minister of Transportation, Rotimi Amaechi Tuesday expressed worry that available railways transportation system for movement of cargoes are not being utilised.
Speaking on the topic “Rail Infrastructure: Progress and Plan” at a forum ‘Nigeria 2020 Economic Outlook’ organised by Deloitte in Lagos Amaechi said such trend of non-utlisation of rail transport for movement of goods would be a big problem for the government in recouping what has been spent on rail projects.
The Minister was referring specifically to the Itakpe to Warri and Abuja-Kaduna rail transport which according to him were ready but not being utilised.
He explained that the reason for constructing railways was not just for passengers but also for goods.
Amaechi disclosed that very soon other rail projects would be ready, adding that these railways were specifically targeted at carrying goods as well as passengers.
He said that as far he is concerned, movement of goods was the essential element of railways.
He said, “Itakpe to Warri railway is ready, where are the cargoes for it? So, you said the federal government should provide infrastructure, which we have done; we have awarded another contract to construct railway from Abuja to Itakpe, to connect Abuja to Warri, with a new seaport to be constructed at Warri.
“But at least for now, Itakpe to Warri is ready, but where are the cargoes? Nobody is talking about moving cargoes from Lagos to Ibadan, or from Ibadan to Lagos.
“When you talk about railways, if it is to move passengers alone, then there is no need to construct railways because it is very expensive.”
“So, the reason for constructing railway is to provide logistics for the movement of goods.
“We have finished Abuja-Kaduna railway, not even one cargo has been moved. We have moved from 300 passengers a day to 3,700 passengers a day”.
The Minister also debunked speculations that the train from Lagos to Ibadan takes three hours.
He explained that when the Lagos to Ibadan rail starts, there will be three types of operations.
“The first would be those who are rich; we would give them services that would start from Lagos and end at only three locations and there will be another one that would be dropping people at different locations.
“We have paid for 200 wagons, but it will carry nothing! Where are the cargoes? If all we are hoping to do is to jump into the trains and get to Ibadan, it will cost the federal government more money to run that because we would not break-even”.
The Minister disclosed that he would in the next one week seek the President’s approval for more railway projects.
“If you add that to Abuja to Kaduna, which is 186 kilometres and then Lagos to Ibadan, which is about 600 kilometres of railway, there is an approval I am going to seek from the president in the next one week, if I get the approval and we commence construction, we should be leaving Nigeria with another 3,000 kilometres of railway.
“But that still makes us one of the countries with the lowest kilometres of railway in Africa or in the world. South Africa has about 35,000 kilometres of railway.
“The problem Nigeria has is both the leadership and the followership; but more of the followership. First, the railway we met, there was no maintenance and nobody was asking questions.
“When we came, there was no railway contract that was awarded to the seaport. For me, the movement of goods is the essential element of railways.
“So, all the president has said is that we would leave enough infrastructures for the next government. We believe that when the factors of production are okay, the cost of production would reduce.
“Today, Nigeria is not competitive, compared with Ghana. Because of the ECOWAS protocol, you can produce in Ghana and sell in Nigeria.”
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