Nigeria’s Itakpe-Ajaokuta-Warri $200m rail project and economic impact

Just last month, the federal government announced that  the   $200 million Ajaokuta-Warri standard gauge rail line would  be completed and opened to commercial  activities by September 2018, which is a month away from now.

The 302-kilometre rail track is, arguably, the most prominent signature of rail transportation in Nigeria. In fact, it could best be described as the central economic belt of the country, owing largely to the huge solid mineral deposits within the axis, which connects states of Kogi, Edo and Delta.

The project was awarded to three construction firms – Julius Berger, China Civil Engineering construction Corporation (CCECC), and ZTE.

In the new arrangement, 12 new stations were proposed between Itakpe and Warri, with two cited between Itakpe and Ajaokuta, while the remaining 10 stretch between Ajaokuta and Warri.

The rail track will extend to Lokoja and then Abuja. In that connection, the implication is that, it will travel through Warri in Delta State, to the FCT (Abuja) by rail.

The project has a total of 12 stations but the contractors are presently working on eight. The entire project is 302 kilometres, with rehabilitation on-going on 52kilometers, which is from Itakpe to Ajaokuta which involves changing the wooden sleepers to concrete sleepers ones.

Investigation has shown that the 34-year old project, upon completion, is expected to transport steel and other raw materials from Ajaokuta, as well as food items from the South to other parts of the country.

It is also hoped that when completed, all state capitals will be connected by rail, alongside agricultural and industrial clusters.

Expectedly, the project would further open up the areas to commercial activities, which were not possible due to the cost of moving goods from one place to the other, by other means of transportation.

With the over 18. 8 million unemployed and underemployed youths in the country, this ambitious project would not have come at a better time than now.

This is particularly with the promise of helping in closing the huge job gap in the country, thereby reducing the rate of crime and criminality currently ravaging many parts of the country like wild fire.

Furthermore, safety and affordability are some of the major critical factors to consider when sourcing for a means of transportation for either passengers or goods.

Authorities and other stakeholders say the Itakpe-Ajaokuta-Warri rail line would not only serve those purposes, but it will also reduce the pressure on the Nigerian roads thereby reducing cost of governance.

Interestingly, the project has received royal nod, as the  Ohi Ihima of Ebira land , His Royal Highness,  Ahmed Abdulraheem, who is elated by the huge economic impact of the project applauded government renewed commitment to it particularly as it will boost the economic activities in the state.

For the monarch, his community feel elated about the project because it will contribute immensely to the economic development, not only of this community, the state and country as a whole.

“As you know, this place passed through Ajaokuta; the hobnob of steel development of the country and we are sure, that the completion of this rail line will facilitate the completion of Ajaokuta steel industry. This will ensure speedy progress of economic and welfare of the people not only of this country but Africa as a whole because somehow we are going to be the largest producers of steel and it will impact positively on the economy of the country.”

Ahmed Abdulraheem observed that, the challenges that stagnated the work is the frequent  change of government and it appears that any government that comes in will feel it is not their business to continue from where the previous government stopped and this is where the mistake came from.

“But by now I think that, there will be progress without hindrances from change of government or institutions of administrations of any kind and you will see that whenever we conceive of a project, we can continue with the deadline set so that whatever changes that occurs in between will not affect the progress of the project.”

During his recent inspection of the project, Rotimi Amaechi, the minister of transportation, maintained that, the rail line would be completed before the scheduled date.

Amaechi disclosed during the assessment tour, that the tracks were ready, noting, however, that only the stations were yet to be completed.

It is between 70 to 80 per cent completed and even though the project is meant to be completed in 2019, the Federal Government is compelling and pushing the contractors to work day and night to have it delivered this year.

In terms of time frame, the contractors are well ahead of schedule. It is meant to be completed in 2019 and what we are doing here is what we are doing in Lagos-Ibadan and that project is actually a three-year contract. But we are forcing them to complete it in one-year period.

Technically, with the level of work now, the train can run safely from Itakpe-Warri, but the next stage is to make the convenience for passengers available which is the stations building.

“It is possible to operate now with one train, as far as we have communication signals and for the stations, some will be completed in August, some September, but we are not going to wait for that or else the tracks will go bad, so as a train operator, we will not wait’’. So said Fidet Okhira, managing director of Nigerian Railway Corporation (NRC).

Work is in progress on the Agenebode station, Itakpe, Eganyi, Ajaokuta, Itogbo, Uromi, Igueben-Ekhen, Igbanke and Agbor, which is the central station at the moment.

However, there are concerns that the progress of work is being affected by the rainy season, which may make the initial August delivery timeline not feasible.