• Wednesday, April 24, 2024
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‘Itakpe-ajaokuta-warri rail project presents huge potentials for economic growth’

‘Itakpe-ajaokuta-warri rail project presents huge potentials for economic growth’

The Itakpe-ajaokuta-warri rail line, a critical rail line for the import and export trade has been envisaged to boost economic growth in the Southeast, South South and North Central due to its proximity to the Warri port and production companies. According to Fidet Okhiria, managing director, Nigeria Railway Corporation, , the rail line which commenced operation last week Thursday.

The corridor referred to as the central railway line, has 13 coaches, 3 locomotives that carries 22 wagons each was originally intended for the transportation of iron ore to Ajaokuta, Kogi, and Aladja steel rolling mills and transport processed steel to Warri port in Delta State.

The project started under the military era of Ibrahim Babangida in 1987 and was initially planned to be delivered in five years, however, after about 254 kilometres had been constructed was abandoned for over 30 years due to paucity of funds

In 2009, the administration of Good luck Jonathan approved N33bn for the redesign and completion of the remaining 22 kilometres and contract awarded to Team Nigeria and Julius Berger plc. Project was meant to be delivered in March 2013.

The new construction contract covered other areas. They include the construction of the sidings of the Ajaokuta-warri rail line up to Delta Steel Aladja, the construction of six stations, and the rehabilitation of the completed and vandalized portion of the line.

The railway line which connects three states: Kogi, Edo, and Delta states and lately, the FCT, Abuja, was originally conceived as a cargo rail but was later redesigned to provide passenger service.

In 2017, President Muhammadu Buhari announced the funding of the ItakpeWarri rail line at a cost estimate of $200 million equivalent to N72 billion. The project was re-awarded to three construction firms. They are Julius Berger, China Civil Engineering Construction Corporation, (CCECC), and ZTE.

A total 12 new stations were proposed between Itakpe and Warri in a new arrangement broken into two stations between Itakpe and Ajaokuta while the remaining 10 would stretch between Ajaokuta and Warri. These include Itakpe, Eganiy, Adobe, Itogbo, Agenebode, Uromi, Egehen, Igbanke, Agbor, Abraka, Okpara and Ujewu stations.

According to the president, projections indicate that the commencement of operation of the Itakpe

Ajaokuta-warri Rail line will account for close to one million passengers annually and also unleash approximately 3.5 million tonnes capacity of freight annually that will service all off-takers on the corridor and beyond.

Buhari speaking virtually at the inauguration directed the federal ministry of transportation to link all the nation’s ports of origin and destination including Apapa, Tin-can, Warri, Onne and Calabar seaports to the rail network in order to significantly improve overall transportation and economic capacities.

However, the management of the NRC revealed that the extension of the rail line to Warri and Abuja is already ongoing.

Minister of Transportation, Rotimi Amaechi, speaking at the official inauguration of the project for commercial use, revealed that the rail line is fully funded by the federal government.

He explained that the project at the inception underwent protracted hiccups, prolonged abandonment, and massive vandalisation, before it was resuscitated by the Buhari administration. “There is no loan on this project, it was funded from the budget and I had the directive of the President to go and revive it and complete it as soon as possible”. The minister said.

Godwin Obaseki, governor of Edo state who was present at the inauguration of the rail station, appealed to the federal government to extend the rail line to the industrial park in Benin City to facilitate the movement of goods to the northern part of the country.

Delta state governor, Ifeanyi Okowa during his remark, urged government in collaboration with the states to provide adequate security cover for the rail line corridor.

Okowa also urged the private sector to take advantage of the historic corridor by establishing investments that will create jobs for locals, curb youth restiveness and stem the tide of criminality.

On the significance of the railline, a rail operation expert, Christian Aondover Madza, noted that the rail line, which was long awaited for, would ease transportation of cement, steel and Agricultural produce to the northan part of the country and as well improve the country’s economy as it would generate employment and business opportunities.

“In terms of manufacturing, moving of commercial goods and other trade activities along that side, it will increase the per capital income of Nigeria because there would be that general addition to our internally generated revenue”

Madza noted that if the Warri’s port starts functioning optimally, the region would experience more settlement as most Lagosians would have an alternative business arena. He further envisage that the area would experience development as companies and business initiatives would spring up