The Nigeria Railway Corporation (NRC) is mulling acquisition of another set of 50 tank wagons for hauling petroleum products by rail system, as it prepares the first set of 20 tank wagons already imported into the country for operation by mid-April when the Lagos-Kano line comes into use.
The managing director of the corporation, Engr. Adeseyi Sijuwade, who disclosed this in an exclusive interview with LEADERSHIP SUNDAY yesterday, said he was awaiting budgetary approval for an order for the importation of the tankers to be made.
Already, major oil marketers such as Oando, Agip and Total are in the list to benefit from the fuel haulage by train. About N1.5 billion may be expended in the acquisition of the 50 pressurised tanker wagons, as the cost of acquiring the first 20 was N600 million, indicating a unit cost of N30 million.
However, the NRC boss who did not disclose the amount for which the corporation is awaiting approval, explained that a lot of costs come with acquisition of the tankers.
He said: “These tank wagons were actually manufactured in China and when you talk about the price of the tank wagons, that price includes the manufacturing, shipping and clearing, commissioning here in Nigeria and training of our staff in the maintenance and operation of the wagons. So, it’s what I will call the total package cost.
“It’s not just tank wagons. We are talking about procurement of more passenger coaches, procurement of more container wagons, rehabilitation of more coaches and wagons. There is quite a lot that is required to enhance the level of service.”
The railway system for several decades has been moribund, but government is making frantic efforts to rehabilitate the various tracks, including the one from Lagos to Kano, which the NRC boss said was almost completed.
With the Lagos-Kano line to kick-off in April, Engr. Sijuwade said the interesting thing about the feat was the enormous demand from potential customers, such as the Nigeria Flour Mills, Dangote Group and Lafarge Wapco.
“The Nigeria Flour Mills is eagerly waiting to commence movement of goods from Lagos all the way to the north by this line. We have also got Dangote Cement and we are at the verge of concluding the arrangements. We have Lafarge Wapco, which at the moment is already moving products from Lagos to Ilorin.
“The company again is now very keen and plans are underway for it to actually establish a massive depot in Minna. The train depot will be the hub of its services and distribution network in the north. Again moving from its plant at Ewekoro to Minna, Lafarge has commenced arrangement in that direction,” he enthused.
Stressing the importance of the enactment of the railway amendment bill which, is currently before the National Assembly, Engr. Sijuwade stated that government partnership with the private sector remained indispensable for the new NRC to develop into rapid railway system.