Despite signs of improvement rail transport still needs intensive care
The avowed commitment of the Federal Government to revamp the nation’s hitherto comatose railway sector may suffer a serious setback going by the huge fees being charged by some foreign and local consultancy firms engaged to provide feasibility studies. This is because the relevant authorities did not seem to have factored in this essential component in their plan. According to the Ministry of Transport, the consultancy firms whose services are critical to the success of ongoing rehabilitation of existing rail lines and construction of new routes are demanding fees which the government is finding difficult to come up with due to budgetary constraints.
Going by government records, CPCS Transcom will receive N284,562,603 to carry out feasibility studies for a standard guage line for the Lagos-Ibadan, Osogbo-Baro-Abuja routes, and another N334 million for a separate feasibility study on a new route across the Niger Delta. The 673- kilometre project covers Benin-Sapele-Warri-Yenagoa-Port Harcourt-Aba-Uyo-Calabar-Akampa-Ikom-Obudu Cattle Ranch. On its part Siraj Nigeria would pick up N443.15 million for the feasibility studies on a 533-kilometre standard gauge line covering Ajaokuta-Obajana-Jakura-Baro-Abuja, with an additional line running through Otukpo from Ajaokuta.
Available records also indicate that Team Nig Ltd is expected to carry out feasibility studies/consultancy for a standard guage line from Zaria-Kaura Namoda-Sokoto-Illela-BeninKoni (Niger Republic) covering 520km and the company has asked for N214,560,920 for the job. The company alone is further saddled with three separate consultancy services worth over N600 million in projects across various locations. The second involves feasibility studies/consultancy for a 300km East-West standard guage rail line, covering Lagos-Sagamu-Ijebu-Ode-Ore-Benin City at the cost of N165,310,275.00.
The third of a feasibility/consultancy job awarded to Team Nigeria Ltd is for a 500- kilometre standard guage line covering Benin-Agbor-Onitsha-Nnewi-Owerri-Aba with additional lines from Onitsha-Enugu-Abakaliki at a cost of N226,816,661. CrestHill Engineering Ltd is to carry out feasibility studies/consultancy for a 280-kilometre standard guage rail line in Eganyi (near Ajaokuta)-Lokoja-Abaji and Abuja for N144,003,024.00. To pay the cumulative of these consultancy fees and other ancillary bills would no doubt stretch the ministry’s resources and therefore impede the success of the rehabilitation efforts. But we wonder why no contingency plan was made for these feasibility studies in the plan for the railway and whether the costs being charged are also not prohibitive.
While it remains a shame that Nigeria is finding it difficult to upgrade only narrow gauge tracks laid down by the British colonial government when they launched railway service in the country in1912, it is even more unfortunate that the investment in the sector is still small. We must, however, commend the current administration for paying far greater attention to the sector than any government in recent times with more than N100 billion expended in the last four years. Yet it was not until late last year that the Jonathan administration re-launched the rehabilitation of the 1,126-kilometre Lagos to Kano rail line that had been abandoned for more than a decade. With the delivery of 25 GE locomotives and renovation of 500 wagons and passenger coaches early this year services recommenced on the Lagos-Kano route.
However, despite these efforts, it is evident from the inability to pay consultancy fees that the foundation for the current efforts to revive the rail sector is suspect, especially against the background that the National Council on Privatisation (NCP) once established the Transport Sector Reform Implementation Committee (TSRC). The essence of the TSRC is to work towards transforming the NRC through the creation of a new legal and regulatory framework that will ultimately culminate in private participation in the sector.
There are no indications that the authorities charged with the current efforts to revive the railway take into account some of these issues, raising fears that at the end of the day, we may just be throwing money into another bottomless pit.
Going by government records, CPCS Transcom will receive N284,562,603 to carry out feasibility studies for a standard guage line for the Lagos-Ibadan, Osogbo-Baro-Abuja routes, and another N334 million for a separate feasibility study on a new route across the Niger Delta. The 673- kilometre project covers Benin-Sapele-Warri-Yenagoa-Port Harcourt-Aba-Uyo-Calabar-Akampa-Ikom-Obudu Cattle Ranch. On its part Siraj Nigeria would pick up N443.15 million for the feasibility studies on a 533-kilometre standard gauge line covering Ajaokuta-Obajana-Jakura-Baro-Abuja, with an additional line running through Otukpo from Ajaokuta.
Available records also indicate that Team Nig Ltd is expected to carry out feasibility studies/consultancy for a standard guage line from Zaria-Kaura Namoda-Sokoto-Illela-BeninKoni (Niger Republic) covering 520km and the company has asked for N214,560,920 for the job. The company alone is further saddled with three separate consultancy services worth over N600 million in projects across various locations. The second involves feasibility studies/consultancy for a 300km East-West standard guage rail line, covering Lagos-Sagamu-Ijebu-Ode-Ore-Benin City at the cost of N165,310,275.00.
The third of a feasibility/consultancy job awarded to Team Nigeria Ltd is for a 500- kilometre standard guage line covering Benin-Agbor-Onitsha-Nnewi-Owerri-Aba with additional lines from Onitsha-Enugu-Abakaliki at a cost of N226,816,661. CrestHill Engineering Ltd is to carry out feasibility studies/consultancy for a 280-kilometre standard guage rail line in Eganyi (near Ajaokuta)-Lokoja-Abaji and Abuja for N144,003,024.00. To pay the cumulative of these consultancy fees and other ancillary bills would no doubt stretch the ministry’s resources and therefore impede the success of the rehabilitation efforts. But we wonder why no contingency plan was made for these feasibility studies in the plan for the railway and whether the costs being charged are also not prohibitive.
While it remains a shame that Nigeria is finding it difficult to upgrade only narrow gauge tracks laid down by the British colonial government when they launched railway service in the country in1912, it is even more unfortunate that the investment in the sector is still small. We must, however, commend the current administration for paying far greater attention to the sector than any government in recent times with more than N100 billion expended in the last four years. Yet it was not until late last year that the Jonathan administration re-launched the rehabilitation of the 1,126-kilometre Lagos to Kano rail line that had been abandoned for more than a decade. With the delivery of 25 GE locomotives and renovation of 500 wagons and passenger coaches early this year services recommenced on the Lagos-Kano route.
However, despite these efforts, it is evident from the inability to pay consultancy fees that the foundation for the current efforts to revive the rail sector is suspect, especially against the background that the National Council on Privatisation (NCP) once established the Transport Sector Reform Implementation Committee (TSRC). The essence of the TSRC is to work towards transforming the NRC through the creation of a new legal and regulatory framework that will ultimately culminate in private participation in the sector.
There are no indications that the authorities charged with the current efforts to revive the railway take into account some of these issues, raising fears that at the end of the day, we may just be throwing money into another bottomless pit.
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