Apapa- Yaba standard gauge rail begins operation soon
* Train to deliver 500 containers daily
THelong- awaited standard gauge expected to provide the needed alternative to the movement of cargo on the road to solve the persistent gridlock around the Apapa seaports will kick off operation before the end of this quarter.
The rail is expected to aid the evacuation of cargoes from the ports, facilitate export, reduce gridlock on port access roads and curb the huge revenue losses to the bottlenecks at the ports.
The project, which is being executed by the Nigerian Railway Corporation ( NRC) and AMP Terminals, is designed to run alongside the existing narrow gauge from the Apapa Seaport to the NRC terminal at Yaba.
It is projected to deliver 500 wet and dry cargoes daily. This is expected to reduce the volume of cargoes moved on roads.
The Director of Operations, NRC, Niyi Alli, said the narrow gauge rail line has been functional while the standard gauge, earlier delayed by the COVID- 19 pandemic, would make a significant change in the volume of hauled through the rail.
Alli said the two railway lines would increase the efficiency of the delivery of goods from and to the port, adding that the NRC is hoping to move about 500 containers by rail daily when the project is completed.
He noted that once transportation efficiency would crash the prices of goods in the country.
He explained that the NRC is working with the Nigerian Shippers’ Council ( NSC) and the Nigerian Ports Authority ( NPA) to reduce inefficiencies at terminals. Part of the plan, he said, is to ensure that the trains leave the port an hour after arrival.
Recall that African Centre for Supply Chain ( ACSC) practitioners had disclosed that congestion at the Nigerian ports was negatively impacting Nigeria’s gross domestic product ( GDP) and that the country loses $ 14.2 billion to the challenge yearly.
The electronic call- up system, which commenced operation recently amidst tall expectation that it would end the Apapa gridlock, has experienced multiple setbacks with some stakeholders alleging sabotage.
On how the expected rail operation would affect the electronic call- up system, Alli said it would not take the whole market. He envisaged 4: 6 sharing formula in favour of roads.
“The electronic call- up system will still be there, we are going to complement each other. What you will find is that the ease of doing business and transportation would be greatly enhanced because we won’t have all the drivers come into the port anymore, so Apapa will become a beautiful place again like it used to be,” he stated.
On the cost of moving cargoes, Alli said: “We don’t have a set price template. But obviously, the market forces will eventually determine the charges. We have to be competitive as road operators are in the market.”
APM Terminals Apapa and NRC had last year announced the restoration of rail service for the evacuation of containers from the Lagos Port Complex Apapa as part of efforts to decongest the port access roads.
They developed a new Standard Operating Procedure ( SOP), which was facilitated by the Nigerian
Shippers Council ( NSC) to bridge the communication gap and ultimately lead to more efficient cargo evacuation by rail.
Under the new arrangement, containers will be discharged at Alagomeji terminal in Yaba, Lagos and Ijoko Terminal in Ogun State while trucks would be deployed to both locations to collect the containers and return empty, which the NRC will convey back to the port.
Besides, port operators have expressed hope and fears about the reality of the rail service as they await its full operation.
The National President, African Association of Professional Freight Forwarders and Logistics of Nigeria ( APFFLON), Frank Ogunojemite, clamoured for rail for years, adding that an efficient multimodal system will help ease the transportation of cargoes and reduce pressure on the roads.
He said while the railway is still under construction, putting it to use would promote port efficiency, reduce the gridlock and increase the lifespan of the roads while reducing road accidents.
Ogunojemite said if used properly, the turnover would be rapid. He said while it takes two- three weeks to deliver a container to other parts of the country by road, rail would spend a few days to get to any part of the country.
He, however, noted: “I believe that there are some cabals that may sabotage the efforts because they make money from the trucks on the roads. When the rail begins to work, efficiency will go up while the cost will reduce. They will not be able to extort anymore. Around December and January, the cost of taking containers just from the port to the Lagos mainland was over N1 million,” he said.
I believe that there are some cabals that may sabotage the efforts because they make money from the trucks on the roads. When the rail begins to work, efficiency will go up while the cost will reduce. They will not be able to extort anymore. Around December and January, the cost of taking containers just from the port to the Lagos mainland was over N1 million.