The Nigerian Railway Corporation (NRC) has finally given an operational license to the China Civil Engineering Construction Corporation Ltd (CCECC) to begin freight haulage on the Lagos-Ibadan Railway.
John Zhao, chief representative and executive director of CCECC, disclosed this on Friday on his official X handle @JohnCCECC, where he described the development as a new milestone for the Lagos-Ibadan Railway.
“CCECC has been officially authorised by the Nigerian Railway Corporation to operate railway services for the public carriage of goods, becoming the first company licensed to operate standard-gauge rail freight in Nigeria,” the post reads in part.
Zhao told Nigerians to watch out as the firm builds sheds with transportation hubs in Abeokuta, Kajola, and Omi Adio.
“Our Lagos roads will also be at some degree of peace. Infrastructure aids economic growth. Well done @info_NRC and well done CECC and the Minister of Transport,” he added.
This development will ensure that a certain percentage of cargo that comes into Nigeria will be moved through alternative transport systems such as railways.
It will enable seamless evacuation, reduction in the volume of damages on transit cargoes, and the cost of transporting goods for shippers.
Also, containers from the Apapa Port will be moved on the $1.5 billion Lagos-Ibadan Standard Gauge Rail Line to the hubs in Abeokuta, Kajola, and Omi Adio.
In 2023, CCECC opened the discussion with NRC to facilitate the movement of containers and cargo from Apapa Port via Lagos-Ibadan Rail to the Ibadan corridor.
It was gathered that containers heading to Agbara will be dropped at Kajola while containers heading to the north and eastern parts of the country will be dropped at Ibadan and Abeokuta respectively.
In addition to the APM Terminals, the rail is also expected to evacuate goods from other major terminals in Apapa, including ENL Consortium, and Apapa Bulk Terminal.
This development will come with a certain percentage of relief for businesses that are passing through a series of ordeal to move their goods in and out of the port using roads.
Pius Akutah, executive secretary of the Nigerian Shippers Council said at a recent forum that the lack of a functional rail system to move cargo to the hinterland has been impeding the ease of doing business and resulting in congestion at the seaports.
He said it delays vessel discharge and increases turnaround time for ships.
This, Akutah said, compels importers and exporters to pay high demurrage and also results in trucks and tankers cogging the road, and causing traffic gridlock.
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