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Nigeria rail industry

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Nigeria rail industry

  1. 1. 2015 Africa Rail Conference Nigeria: Country Spotlight By ENGR. ADESEYI SIJUWADE, FNSE, FCILT July, 2015 MANAGING DIRECTOR NIGERIAN RAILWAY CORPORATION
  2. 2. Infrastructure Development Plan Railway Development Programme  Opportunities for Private Sector Participation Conclusion Overview
  3. 3. Infrastructure Development Plan  The backbone of a nation’s economy is its stock of infrastructure  Typically, for developed countries, infrastructure is responsible for about 70% of GDP, but in Nigeria, infrastructure accounts for only 35 - 40% of GDP  The infrastructure gap of about USD2.9trillion is intended to be closed over the next 30 years  To stimulate further growth and diversification of the Nigerian economy, attract foreign investment and enhance job creation, the Federal Government came up with the Vision 20:2020 roadmap.
  4. 4. Infrastructure Development Plan – Cont’d • Nigeria’s Vision 20:2020 aims to promote sustained and inclusive economic growth, and elevate Nigeria’s economy to be among the top 20 economies in the world by the year 2020 • Inspired by Vision 20:2020 aspirations, the National Integrated Infrastructure Master Plan (NIIMP) was developed as an all inclusive approach to infrastructure delivery. • The NIIMP is a 30 year plan that covers “core” infrastructure – Transport, Energy, ICT and Water and others such as Agriculture, Mining, Housing and Social Infrastructure with priority projects outlined for the first 5 years of the plan
  5. 5. Infrastructure Development Plan: Focus on Rail Vision 20:2020 - At least 40 million tons of freight by 2020. Action Plans RAIL • Rehabilitation of the existing narrow gauge rail (3500km network) • Completion of the Ajaokuta-Warri standard gauge line. • Rehabilitation of rail links within Nigeria’s main ports. • Construction of mass transit rail lines in Lagos and Abuja. • Construction of rail lines to link Inland Container Depots (ICDs) to sea ports • Concession of the rail lines from Lagos to Kano and from Port Harcourt to Maiduguri. • Expansion of the standard gauge network by 784km NIIMP Targets RAIL • To invest about USD75B over the next 30 years which will include construction of over 6,000 kilometres of new standard gauge lines • Link all major economic centres to the rail network • Provide adequate rail infrastructure for even economic development of the country. • Create an enabling environment for private sector participation in the provision of rail infrastructure.
  6. 6. Railway Development Programme - Background The Nigeria Railway system is about 117years old. Between 1898 and 1964 Nigeria had built a network of narrow gauge rail lines totaling 3505km. In 1986, the Federal Government of Nigeria commenced the construction of 326 km standard gauge rail line phase 1 from Itakpe – Ajaokuta – Warri. However, for over two decades, the rail system became comatose up till 2009 when the government commenced implementation of a 25 year Strategic Vision to revive the sector adopting a systematic dual approach. This entails the rehabilitation of the entire existing narrow gauge lines simultaneously with the development of standard gauge lines. In February, 2011 the Federal Government of Nigeria commenced the construction of 187.5 km Abuja – Kaduna Standard gauge rail line.
  7. 7. HISTORICAL DEVELOPMENT OF RAILWAYS IN NIGERIA GOMBE – MAIDUGURI 1963 – 1964(302km) BAUCHI – GOMBE 1961 – 1963(166km) KURU – BAUCHI 1958 – 1961(166km) KADUNA JUNCTION - KAFANCHAN 1922 – 1927(179km) ENUGU-MAKURDI 1916 – 1924(220km) PH - ENUGU 1914 – 1916(243km) KANO - BARO 1907 –1911(562km) JEBBA - MINNA 1909 -1915(225km) IBADAN - JEBBA 1901 –1909(295km) LAGOS - IBADAN 1898 –1901(193km) KAF – JOS OPENED 1927 (101km) PH – ONNE ON- GOING 19km AJAOKUTA – WARRI ONGOING (277km)
  8. 8. Railway Development Programme – Track Rehabilitation  The rehabilitation of over 90% of the entire 3500km narrow gauge network throughout the country is near completion.  Rehabilitation of the Lagos to Kano, and Port Harcourt to Gombe lines is completed and passenger services and haulage of goods along the lines have since commenced.  Rehabilitation of sidings and loop lines along the Western line, including links to key industrial locations between Lagos and Kano and a spur line to the Kaduna Power Plant Complex is expected to be completed by end of 2015.
  9. 9. Railway Development Programme – Update on Rehabilitation Projects Contract Distance Contractor Physical Progress Track & Signalling – Western Line (Lagos –Jebba) Lagos – Ibadan – Ilorin - Jebba 488km CCECC Nig. Ltd. 100% Track & Signalling – Western Line (Jebba – Kano) Jebba – Minna – Kaduna – Zaria - Kano 636km Costain (WA) Ltd 99.5% Signalling & Telecoms – Eastern and Western Lines Upgrading of Signalling Equipment 1,657km A3&O / Gear Group / Ansaldo 45% Track– Eastern Line (PH – Makurdi) PH – Umuahia – Enugu - Makurdi 463km Eser Contracting W. A 85% Track – Eastern Line (Makurdi – Kuru, Plus Spur Jos & Kafanchan) Makurdi – Lafia – Kuru – Spur to Jos – Kafachan and Kaduna 554m CGGC 85% Track – Eastern Line (Kuru – Maiduguri) Kuru – Bauchi – Gombe - Maiduguri 640km Lingo 47% Track – Zaria – Kaura Namoda Zaria – Funtua – Gusau – Kaura Namoda 221km Duluidas 90% Addendum to Lagos to Jebba Contract Rehabilitation of Sidings & LoopLines from Lagos – Kano and Lagos – Kano CCECC 65%
  10. 10. Railway Development Programme – Track Rehabilitation Track Condition at Aba Before Rehabilitation Akerri Bridge Before Rehabilitation Akerri Bridge After Rehabilitation Track Condition at Aba After Rehabilitation
  11. 11. Railway Development Programme - Construction of New Standard Gauge Lines  Construction of the Itakpe – Ajaokuta – Warri Standard Gauge line (277km) is in progress and expected to be completed by end of 2015.  Construction of Abuja(Idu) – Kaduna Standard gauge line (187km) is over 85% also expected to be delivered end of 2015.  Construction of Lagos – Ibadan Standard Gauge (double track) 2 x 180km has been awarded and will commence as soon as funding arrangement is concluded with the China Exim Bank by the Federal Ministry of Finance. Abuja - Kaduna Itakpe – Ajaokuta – Warri
  12. 12. States Light Rail project Various State Governments are embarking on light rail projects to address the urban transportation challenges:  Lagos State rail mass transit Blue Line project is ongoing  River State Mono-rail project in Port Harcourt is about 95% completed  Ogun State has just award an inter/intra state rail construction project to the CCECC  Abuja Light Rail project is nearing completion Blue Line, Lagos
  13. 13. Railway Development Programme - Locomotives and Rolling Stock FUNCTIONAL REPAIRABLE LOCOMOTIVES • Shunters • Mainline 29 55 WAGONS • Container • Oil Tank • Covered • Hopper • Wooden 250 550 COACHES • Standard • 1st Class • Sleepers • Canteen • Inspection • Baggage Vans 120 50  Refurbished 250 wagons  Refurbished 120coaches  Procured 25Nos. 2500HP GE Locomotives  Procured 4 Nos. 1800HP CNR Locomotives  Procured 40Nos. Oil Tank Wagons  Procured 2Nos. 100ton Telescopic Cranes  Procured 4Nos. 60ton Overhead Cranes  Procured 3 Nos. Inspection Vehicles  Procured 5Nos. Rail Road Recovery Vehicles  Procured 3 Nos. Wheel Lathe Machine, fully installed  Procured 2 Sets of Diesel Multiple Units (DMU)  Procured 11Nos. 68-Seater Air-conditioned Coaches  Procured 18Nos. 4-Seater Motorized Rail Trolley  Procured 2Nos. 16-Seater Rail Buses & 2Nos. Rail Cars  Ordered 2Nos. 1800HP CNR Locomotives and 2Nos. Power Cars to be delivered in 2015  Ordered for 2Nos. 3,500 HP Locomotives with in-built power car and 5Nos. Air Conditioned Coaches for Standard Gauge Line to be delivered in 2015
  14. 14. Railway Development Programme – Modernisation of Locomotives & Rolling Stock  NRC is moving towards localization and skills transfer  Modernization of NRC’s existing, GE Transportation U-series and other EMD series locomotives  Modernisation of 60Nos. Flat Bed Wagons (Primarily used for movement of bonded containers from Ports)  Modernisation of 20Nos. Pan Xtra Goods (PXG) Covered Wagons (Primarily used for movement of bagged cement)  Modernisation of 40Nos. Covered Hopper Wagon (CHW) Primarily used for movement of Wheat  Modernisation of 6Nos. Power Cars (Housing generators that supply electricity for air-conditioning and lighting in passenger coaches)
  15. 15. Railway Development Programme - Current Train Operations • Passengers Service Intra-city Mass Transit: Lagos Mass Transit Train: 18 Trips per day, Kaduna Intracity Mass : 10 Trips per day Intercity Passenger Service: Lagos – Kano –Lagos Train: twice per week, Lagos-Ilorin-Lagos Train: thrice per week, Offa – Kano - Offa Train: Once a week, Minna – Kaduna – Minna Train: thrice per week, Kano – Nguru Train: twice per week, Enugu – Port Harcourt – Enugu twice per week Port Harcourt – Kafanchan once a week Kaduna – Gombe – Kaduna once a week Excursion Trains: Highly patronized during festivities Coming Soon: New Mixed Trains from Kano – Port Harcourt , and Gombe to PH to commence in July, 2015 • Freight Service Flour Mills (Wheat) Traffic: Lagos to Kano, carrying about 3,000 tons per month Lafarge Cement Traffic, Lagos to Kano, carrying about 3,000 tons monthly Movement of containers for ICNL: Lagos to Kano about 2,000 tons monthly Track Materials for Eastern Line Contractors, about 9,000 tons monthly Movement of Petroleum Products for NRC and Connect rail: Lagos to Kano Coming Soon – Container Traffic for APM, Lagos to Kano
  16. 16. 0 1 000 000 2 000 000 3 000 000 4 000 000 5 000 000 6 000 000 2009 2010 2011 2012 2013 2014 OPERATIONAL PERFORMANCE – PASSENGER SERVICES
  17. 17. Opportunities for Private Sector Participation - Projection Of Train Services Over The Next 10 Years Route 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Narrow Gauge Eastern Line (PortHarcourt - Maiduguri) Western Line (Lagos - Kano) Standard Gauge Itakpe - Ajaokuta - Warri Abuja - Kaduna Lagos - Ibadan Zaria –Kaura Namoda- Birnin Konni Ajaokuta(Eganyi) - Obajana - Abuja Ajaokuta - Oturkpo - Onitsha Eganyi(Near Ajaokuta) - Lokoja - Abaji - Abuja Lagos - Abuja (High Speed)
  18. 18. Opportunities for Private Sector Participation - Projected Rolling Stock Requirement For The Next 10 Years Rolling Stock 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 total Locomotives 20 25 20 25 230 37 42 44 42 50 535 Coaches 100 100 100 100 846 200 200 100 100 200 2,046 Wagons 350 250 250 200 3,100 1,250 200 200 200 200 9,300
  19. 19. Opportunities for Private Sector Participation – PPP Initiatives  Finance, Supply, and jointly manage with NRC, utilization of wagons to enhance freight haulage capacity  Finance, Supply, and jointly manage with NRC, utilization of coaches to enhance passenger carriage capacity  Design, Build, Maintain, Operate, and Transfer (DBMOT) of Warehousing to provide suitable, safe and secure storage space for goods  Finance, Supply, and Operate modern facilities and provide services for loading and offloading of goods 1) Logistics Services Remodelling and Redevelopment of 9 Major Railway Stations to incorporate Commercial Outlet 2) Station Remodelling and Redevelopment  Development of 8Nos. Railway Landed Properties at Prime locations for Residential, Hotel and other Commercial purposes 3) Development of Railway Landed Properties Outline Business Cases (OBC) for the 3 PPP initiatives are being finalised by our Transaction Advisers following which Procurement Process for PPP Consortiums will commence
  20. 20. S/N FEASIBILITY STUDIES COMPLETED 1 Lagos - Abuja (High Speed 550km) 2 Ajaokuta (Eganyi)-Obajana-Jakura-Baro-Abuja with additional line from Ajaokuta - Otukpo - to include the Anyigba - Ejule - Idah - Adoru - Nsukka - Adani - Omor - Anaku - Aguleri - Nsugbe - Onitsha Rail Line (821km) 3 Zaria-Kaura Namoda-Sokoto- Illela -Birnin Konni (Niger Republic - 520km) 4 Benin-Agbor-Onitsha-Nnewi-Owerri-Aba with additional line from Onitsha-Enugu-Abakaliki (500km) 5 Eganyi(Near Ajaokuta) - Lokoja - Abaji - Abuja (280km) FEASIBILITY STUDIES ON-GOING 6 Kano – Bichi - Katsina – Jibiya (354km) 7 Sokoto – Birnin Kebbi - Jega – Yauri - Makera with a branch line to Kontagora (408km) 8 Aba – Ikot Ekpene - Ibiono - Itu (Spur Uyo) Odukpani Calabar (340km) 9 Port Harcourt – Aba – Umuahia – Enugu – Makurdi – Lafia - Jos – Bauchi – Gombe- Biu - Maiduguri (1,552km) 10 Calabar -Ikom – Obudu – Ogoja – KatsinaAla – Wukari – Jalingo – Yola – Maiduguri (1,069km) 11 Kano – Nguru – Gashua – Damaturu – Maiduguri – Gamboru Ngala (707km) Opportunities for Private Sector Participation – Greenfield Projects 20
  21. 21. Conclusion Nigeria is making appreciable efforts to address its infrastructure challenges The Federal Government has demonstrated great commitment towards Revitalization and Modernization of the rail system However, Government cannot fully address the Railway infrastructural challenges without significant involvement of the private sector The Government is making efforts to provide the enabling environment for effective Private sector participation in the country’s rail sector - The Nigerian Railway Corporation Act of 1955 is in the process of being repealed and re- enacted. The draft Bill has been forwarded to the National Assembly. Nigeria’s investment climate is currently very attractive hence the increase in the FDI inflow in recent times Now is the time to take advantage of the enormous opportunities in Nigeria Rail Sector.
  22. 22. Thank you for Listening

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