Nigerians In America - http://www.nigeriansinamerica.com
Rail Modernization Project: Viewing The Collapse From The Lapses
http://www.nigeriansinamerica.com/articles/2441/1/Rail-Modernization-Project-Viewing-The-Collapse-From-The-Lapses/Page1.html
L.Chinedu Arizona-Ogwu

Arizona-Ogwu writes from Oyigbo, Rivers State, Nigeria.

 
By L.Chinedu Arizona-Ogwu
Published on 02/25/2008
 

The purported 25-year national plan for railway development initiated four years ago appears tardy and unrealistic and therefore should be scrapped. A proper decision must be taken on whether the rail mode should be public service centred, commercialized or privatized…


Page 1 of 2

The Nigerian Railway was constructed between 1898 and 1927 and extended to Maiduguri between 1955 and November 1962. The track network was built essentially for the transportation of produce from the hinterland to the port during the colonial era. The existence of severe gradients, which is compounded by sharp curves over long stretches, has restricted maximum speed. Most of the locomotives, coaches and wagons are over-aged with exorbitant maintenance cost. Prevailing problems are compounded by critical shortage of spare parts and materials for the maintenance of railway infrastructure.

 

Before the 19th century, the single-track narrow-gauge rail network ran diagonally across the country, it was well able to haul all the agricultural products grown in the far north to the seaports at Lagos and Port Harcourt. The contribution of groundnuts from northern Nigeria, palm oil from eastern Nigeria and cacao from western Nigeria to the flourishing Nigerian economy at the time is reminders of the good old railway era.

 

However, further development of the railways was abandoned in favour of road transport by successive governments. Roads were expanded without any consideration of the attendant effects such as road traffic accidents, pollution, congestion, parking, etc. Some highways were constructed parallel to railway lines, resulting in competition rather than a complementary role between road and rail transport. The differences in allocation of funds for railway and road transport by the government, and this trend still haunts railway development today. 

 

Railway construction further increased between 1901-1910, Ibadan-Jebba (295 km); 1907-1911, Kano-Baro (562 km); 1909-1915, Jebba-Minna (252 km); 1914-1916, Port-Harcourt-Enugu (243 km); and 1922-1927, Kafanchan-Jos (179 km). The general objectives of the Nigerian Railway have been the carriage of passengers and goods in a manner that will offer full value for money, meet cost of operation, improve market share and quality of service, ensure maximum efficiency and meet social responsibility. As indicated in the Nigerian Railway Corporation Act of 1955, the main purpose of transforming the Nigerian railway from a government department to a corporation was to maintain an efficient rail transportation system for effective bulk carriage of goods and passengers. But, unfortunately, successive governments, thus making it impossible for the management to achieve its set goals, have grossly neglected the railway system. A few weeks ago, about 7500 employees of the Nigerian Railway Corporation were retrenched to pave the way for effective reconstruction of the old parastatal. Since then, expectation has been high on the preparations for revamping the rail mode as matter of urgency. But, very little has happened. Apart from the comprehensive renovation of the headquarters offices at Ebute Metta, Lagos, operational activities have not witnessed any visible transformation.

 

Unfortunately, in spite of the obvious benefits of railway transportation, The technical problems of such as tight curves, steep gradients, rail buckling with associated track/speed limits appeared, again, Poor communications, Government interference with management structure, Lack of freedom to set tariffs, under-funding, Falling rolling stock levels, Plummeting traffic levels (freight and passenger), Inflexible bureaucracy, Volatile and militant labour union, Irregular staff training, Worn-out infrastructure and Lack of maintenance killed our rail transport system. It was observed that further development was more or less stultified between 1927 and 1958- a period of thirty-one years. It was not until 1958 with the construction of Kafanchan to Bauchi line (238 km) that work resumed on the rail system. This was followed within 1961–1964 with the Bauchi-Maiduguri line (302km). This brought the total rail route of the Nigerian Railway Network to 3505 km (and if sidings are included, to 4,332 km), the broaden construction went with a 32 km line of 1067mm gauge from Iddo (Lagos State) to Otta (Ogun State), which was further extended to Ibadan covering a total of 193 km in 1901.

 

Between 1995 and 1999, a whooping contract of $500 million was awarded to a Chinese firm, China Civil Engineering Construction Corporation to rehabilitate the existing rail, supply 50 locomotives, 150 coaches, 400 wagons and 20 rail buses and provide technical training for the railways staff. The substandard rail locomotives, wagon and coaches supplied by the Chinese firm, however, were not fit for later use. The same China Civil Engineering Constriction Company has again been awarded a whopping $8.3b contract to rehabilitate the rail system. Despite the shoddy work done and substandard locomotives supplied, China continues to make in road in the development of rail system. In 2006, a deal was struck between Beijing and Abuja. Under this deal, China would provide a concessional loan of $1 billion while Nigeria will come up with matching funds. The fund would be used to fix old lines and buy new rolling stock and equipment. General Sani Abacha’s administration in 1995 started the transformation of the corporation when $528million was approved for the rehabilitation of the railways and acquisition of rolling stock and locomotives through a Chinese company, China Civil Engineering Construction Corporation (CCEC). Of the 50 locomotives supplied by the CCEC in 1995, only 10 are currently serviceable, as others have since been grounded owing to lack of spares parts. Sourcing parts for narrow gauge locomotives and coaches may almost be impossible because they have been discontinued in Europe, Americas and Asia. The corporation as a result, placed public tender, calling on interested entrepreneurs to supply it with batteries, microwave equipment and microwave network management system among others. What an insult! 

 

Again, when Nigeria hosted Chinese President Hu Jintao , Newspapers  announced that the MoU reached by the two nations, an offshoot of bilateral talks, was aimed at improving railway infrastructure in Nigeria. The reconstruction programme ratified by the Federal Executive Council on June 18,2006, to be financed through a $2.5 billion Chinese soft loan, could pass through seven major towns of Lagos, Ibadan, Ilorin, Abuja, Kaduna and Kano covering a distance of 1010 kilometer of rail line. 

 

Ex- president Olusegun Obasanjo flaged off the first phase of the estimated N325billion or $2.5b modernization and expansion programme for Nigerian Railway Corporation (NRC), the one-century old hemorrhaging corporation would have gulped more than N400billion in the last ten years of its operation. The initiative was aimed at fostering rapid technological change through a three-way alliance, involving the federal government, private sector and China in a concession strategy expected to reduce government investments in the sector and enhance the railway corporation’s competitive edge in providing safe, reliable and efficient rail services for the country. The blueprint of the award included; 3 Nos. Longitudinal Lines, Lagos – Up North, Warri – Up North and Port Harcourt – Up North, 4 Nos. Latitudinal Lines; and Branch and Extension Lines. 

 

Prominently attention was dedicated to railway transformation during the recent visit of the Chinese leader to Nigeria. The scheme should be followed up to accelerate the programme of railway development. However, adequate caution must be exercised in entrusting railway management to the so-called foreign experts who had disappointed this country in the past. Recent experiences with India and China were indeed deplorable. The former military government invited the Rail India Technical and Economic Service Limited [RITES] to manage the Railway from 1979 to 1982. The purpose of bringing the Indians were to revitalize the rail system, restore its competitive advantage, enhance public confidence and enable the Nigeria Railway Corporation to fulfill its obligations as a meaningful and worthwhile public enterprise. This achievement was however short lived as a result of NRC bureaucratic bottlenecks that eventually led to the loss of several billion of naira. However the Indians neither trained Nigerians nor improved operational services. The unsuccessful completion of the project and resultant failure of the railway to work proficiently recently informed the call for the modernization and expansion of the railway from antiquated narrow gauge to a dual-standard gauge rail track with a travel speed of between 120km/h - 150km/h. 

 

Similarly, and in furtherance of the programme to develop the rail sector, Romanian Project for the supply of Rolling Stock and Workshop equipment (1986 – 1996) but inconclusive; before a bilateral pact was signed in 1995 with the China Civil Engineering Construction Corporation [CCECC]. Under the agreement, the Chinese experts were expected to rehabilitate railway lines, renew signals and reinforce bridges. The contract awarded at a cost of $528 million, about N45 billion, also involved the supply of rolling stock, locomotives and other essential railway equipment. The assignment collapsed. The reasons for the failure of both the Indian and Chinese rail reconstruction contracts have been attributed to the Nigerian factor of corruption at the apex of government.

A fundamental action in the reactivation of the Nigerian Railway is the desirability of repealing the Nigeria Railway Act of 1955 which confers absolute monopoly right on government to run the railways and forbids any form of private sector participation in rail services delivery in the country.

  

In 1980, the railway under the NRC comprised a total of 3505km route of 1067mm gauge. This was considered narrow when compared with the broad gauge that measures 1435 ton or 4ft 81/2 inches. The aim of the NRC was to promote Nigeria’s economy and provide efficient rail transportation through the provision of efficient and reliable goods and passenger train services. Its functions include but not limited to producing a technically complete transportation services and providing limited (stopping at limited states) local and commuter passenger train services. In this sense, NRC was expected to operate as a veritable means of transporting passengers and goods at a relatively cheap cost comparable to other modes of transportation, giving reliable, safe and efficient services with relative comfort. 

 


Page 2 of 2

Different regimes either military or democratic have over the years made spirited efforts to develop the Nigerian railway system through funds granted to the NRC. Despite these attempts, there appears to be motion without movement in Nigeria’s railway system. The funds allocated to railway development in various Developments Plans serve to corroborate government’s interests. In the first National Plan for example, $43.30 million representing 14% of the total allocation to the transport sector in the plan was voted for the development. This allocation was expended essentially on the Bornu extension, the purchase of diesel locomotive, 1425 wagons as well as relaying of tracks (with heavier rainfall) to make room for greater speed. This rose by 87.1% to $108 million in the Second National Development Plan (1970-1974) period. This stood at 17.1% of the transport sector size allocation in that plan. However, the disbursement under the plan left much to be desired. In 1973, a year to the end of the plan, only $13.95million representing a mere 23% of the total allocation had been disbursed.

 

This covers all the State Capitals and major commercial centers in the country. Within this framework, it is further agreed that the 1st Phase of the Railway Line should entail the LagosKano Standard gauge, double track railway line spanning over 1315 kilometers with a loop from Minna to Abuja and only Abuja to Kaduna being single track due to inadequate anticipated traffic. It was further agreed that the scope of work, segmentation and construction will follow 5 segments: LagosIbadan, IbadanIlorin, Ilorin – Minna,Minna – Kano; and Minna – AbujaKaduna.

 

This new approach was designed to significantly impact on our people and their communities. It will ease movement, reduce reliance on vehicles and the airport, promote tourism, and build on the foundations of integration, unity, cooperation, and social harmony that we have been working so hard to consolidate.

 

The design criteria or technical features are: A speed of 120 to 150 km/hour for passenger service, A speed of 80km/hour for freight service,Rail gauge of 1435 mm Standard Gauge, Maximum gradient of 12%, and in exceptional situations 15%, Minimum curve radius: ordinary terrain 2000m, difficult terrain 1200m;Traction type: diesel-electric engine (3 phase engine). Axle weight: 23 tons, Type of rail: 60kg/m, Block type: computer interlocking, inter-station automatic block, subject to being upgradeable, Continuous welded rail shall be applied on all the tracks.

 

Contract formalities for the award and commencement of Lagos- Kano First Phase Project of the modernization program though signed but not was set on the ground… Any effort to revamp the dead railway sector is a welcome initiative. However, the economics of the programme provides me some discomfort. It is agreed that the average cost of building a kilometer rail hovers around $2million and its close to the contract sum. The construction of the rail line would had employed tens of thousands of Nigerians immediately, but the entire prospect failed to promote technology transfer, refused the building of new skills, and declined from the development of rail allied industries. As much as possible, local materials were abandoned.

 

Nigeria expected another regime of capital flight away from our shores. Though China Development Bank could provide needed funds; such will be repatriated to the Chinese economy on the long run. The sophistication of such an enterprise is still lacking in Nigeria and it makes a case for the importation of needed equipment and expertise by the Chinese constructing firm(s). Again, our borrowed money could provide multiples of jobs for China, even at the expense of the Nigerian nation. Though Nigeria may have the railway system revamp on the other hand, a sizeable chunk of the monies, which could be repaid to China, will eventually domicile in same country. Failed Senses!

 

 The crux of the matter is that, a fraction of the said $2.5bn could make positive difference to R&Ds in our universities. New tracks are already being laid on several lines and the Lagos local railway services have been modernised to meet urban and suburban needs.  A $1.26million injection, representing 5% of borrowed funds, to R&D can help drive meaningful innovation for our ailing railway sector. The implication of this is that our nation's ivory towers will become more alive to their duties while providing needed impetus for the development of the Railway sector. This ultimately drives and lowers cost that may be incurred.

 

By 1980s, we used to take pride in our railways network, the largest on the continent. Now, it is hopelessly outdated and produces great losses. The decision to privatise the Nigerian Railway Corporation (NRC) therefore does not come as a surprise to anybody. There is need for modernization of the Nigerian Railway System, which is still based on the prevailing technology at its inception early in the century, according to the Nigerian Ministry of Transport. The needs are great, and the government is looking for investors. Since the Nigerian railways is viewed as being "in comatose" until now, but investments and the privatisation was to revitalize the ancient proud of Nigeria.  NRC needs upgrading of the 3" - 6" (1067mm) gauges, a modernization of track maintenance and a conversion of wagon bearings and trains.  

 

Good a thing the Senate Committee on Public Accounts recently commenced a probe of the $8.3 billion dollar rail modernization project; asking on why the immediate past administration entered into the project without completing the $528 million rehabilitation project started by the Abacha regime. Committee members led by the chairman, Senator Ahmad Lawan were particularly concerned that the same Chinese company, CCECC was awarded the $8.3 billion modernization contract without showing evidence of performance in the earlier contract given it by the Abacha administration.

 

The purported 25-year national plan for railway development initiated four years ago appears tardy and unrealistic and therefore should be scrapped. A proper decision must be taken on whether the rail mode should be public service centred, commercialized or privatized. The current vogue in the civilized world is privatization. There are several models to be emulated in Africa, Asia, Europe and North America. One will recommend the British public-private sector combination with ownership of the infrastructure by

government and routine operations concessioned to private operators.

 

For instance, Light rail had the highest percentage of growth among all modes of transportation, with an increase of 5.4 percent in the United States. More than 62 American cities now have or plan to build light-rail systems.  There are now 651 light-rail stations around the country, operated by 26 transit agencies. Commuter rail agencies add another 1,153 stations.

 

Despite transit critics who charge that light rail offers “limousine-priced” rides to people who would otherwise have taken the bus, there’s ample evidence that transit is cost-effective (especially when the cost of gridlock is taken into account), and ridership is increasing from people who would otherwise have taken their cars. When the St. Louis light rail opened in 1993, not only did the number of passengers far exceed expectations but bus ridership also increased 20 percent. In Toronto, Canada, transit carries 77 percent of all downtown-bound commuters during rush hours. Portland, Oregon’s Tri-Met light-rail system eliminates 187,000 car trips every day, or 58 million per year. s took more than 7.8 billion public transportation trips in the first nine months of 2006, up three percent from the previous year.

 

The critical areas of development necessary in the railway organization should concentrate in redressing the dilapidated nature of the present railway infrastructure, which was occasioned by years of neglect. Attention must be given to the updating and modernization of infrastructure to bring it in line with contemporary railways all over the world. There is pressing need for the realignment of existing track to flatten sharp curves and ease gradients, provision of continuous welded rails of suitable section on. Concrete sleepers and the mechanization of track maintenance as well as the strengthening of bridges should be proposed. The archaic signaling and communications should be modernized. Apart from the ongoing extension of the railways to the steel rolling mills, the linking of the ports of Onne and Tin Can Island ports is also imperative. All state capitals not yet linked to rail lines should be connected as early as possible including the federal capital Abuja. The entire locomotive running sheds and carriage and wagon workshops must be modernized and expanded. The proposal, which had been on the drawing board for the local assembly and manufacture of locomotives and rolling stock, should be expedited.

 

  I think the causes of indiscipline cannot go beyond those who use frivolous contract to sap this nation off her hard earned resources; owing to its detriment act to the growth and development of the nation. Rail operation must be liberalized and a conducive environment created for private sector participation .The National Assembly should book down or bring to book those who were involved To curb these flaw proper and adequate measures should be taken to encourage public-private partnership in this directions. Also government should abolish the privatization idea of Obasanjo regime, since it paid nothing but conversion of public properties into personal affairs.