The Nigerian Shippers’ Council (NSC) has shown concern about the need for an effective railway system for moving goods from ports to different locations in the interior and throughout Nigeria. The council identified the challenge as significantly affecting the Shipping Industry and business operations. Pius Akutah, the Executive Secretary/Chief Executive Officer of NSC, emphasised that the shortage has resulted in Overcrowding at the ports, longer wait times for ships to unload and depart, more Demurrage fees, an uptick in traffic from trucks and tankers, road congestion, and elevated business expenses.
During a one-day stakeholders’ awareness event hosted by the Nigerian Shippers’ Council in Lagos, Akutah emphasised the challenges faced by rail cargo transportation in the country. During the event, the NSC and the Nigerian Railway Corporation (NRC) came together to sign a Memorandum of Understanding (MoU) focused on improving rail transportation for the effective transfer of goods from seaports to Inland Dry Ports (IDPs) and other inland regions. Akutah stressed that the increased attention on the Infrastructure is in line with the goals set by the Federal Government as part of the African Continental Free Trade Area (AFCFTA) agreement.
Rail transport is safer and helps lower greenhouse gas emissions.
He emphasised that the government focuses on boosting the nation’s trade balance by giving precedence to Export initiatives, as historical trends show a lack of export expansion as a major factor in the imbalance. Akutah described rail transportation as a highly effective and economical mode of transport, especially for transporting large quantities of goods over long distances. On the other hand, this transportation method is safer than road and helps lower Greenhouse gas Emissions and energy usage. The NSC and NRC seek to boost the region’s competitiveness in the African market by improving the country’s transportation networks and advocating using railways to transport goods.
This will enable products in the country to be easily transported and exported throughout the continent. The government prioritises exportation to explore the potential benefits for Nigerian shippers within the AfCFTA framework. Akutah emphasised the importance of actively engaging in Africa’s free market through AfCFTA to maximise available benefits. The Nigerian market is open to all of Africa, urging proactive participation to capitalise on the vast opportunities. He discussed the MoU, expressing the agencies’ commitment to improving intermodal connections and speeding up cargo delivery to and from the IDPs.
Low quantities of cargo available for shipping cause delays.
They aim to provide a more affordable transportation option for shipping goods to the inland areas, especially the IDPs. Mr. Fidet Okhiria, the Managing Director of NRC, emphasised the significance of simplifying processes and building partnerships with different stakeholders to enhance the effectiveness of rail transportation across the country. He pinpointed the limitations affecting rail transportation, such as low quantities of cargo available for shipping. He highlighted the difficulty NRC faces in consolidating enough goods to make rail transport economically viable, recounting the arduous task of collecting 17 containers from rural areas and transporting them from Kano to Apapa port.
Also, he expressed his worries about the persistent issue of long wait times for wagons to be loaded at terminals, often lasting two to three days, and labelled it a major problem. Despite the NRC’s persistent efforts to promote collaboration among the Manufacturers Association of Nigeria (MAN), importers, exporters, and various industry groups to streamline shipments and enhance bulk transportation, Okhiria noted that delays remain a significant issue. He also stressed the importance of streamlining terminal operations, highlighting the NRC’s goal of loading wagons within an hour and having them ready to leave within 10 minutes of loading.
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Lastly, he emphasised that the extra fees levied at terminals are a major hindrance to the widespread use of rail transportation, highlighting that each container incurs a charge of ₦60,000. He was worried that the additional charges at train stations would deter customers from utilising the system. Okhiria highlighted the NRC’s impressive operational capabilities, mentioning that the standard gauge rail system can transport 35 containers simultaneously. This capacity can be doubled to 70 containers by utilising a double-headed train. The narrow gauge system can carry 20 containers in one go.