Shippers’ Council, NRC partner to enhance rail transportation of cargo

The Nigerian Shippers Council (NSC) and Nigerian Railway Corporation (NRC) have signed a Memorandum of Understanding (MoU) as part of efforts to improve rail transportation of cargoes from seaports to the hinterlands.

Speaking at a one- day stakeholders summit, on Limitation to Rail Transportation of Cargo in Nigeria, in Lagos on Thursday, NSC Executive Secretary, Pius Akutah, said the collaboration with the NRC aims to enhance intermodal connections, fast-track cargo delivery to and from inland dry ports and reduce transportation costs.

Akutah noted that rail transportation is efficient, economical, and safe for long distances and large volumes of goods, and can reduce greenhouse gas emissions and energy consumption compared with road transportation.

The NSC boss decried the challenges faced by the shipping industry due to the lack of a functional rail system, including congestion at seaports, delays in offloading of vessels,and turnaround time, payment of demurrage as well as increased costs of doing business.

He expressed hope that the partnership would identify solutions to these challenges and enhance the delivery of cargoes to the hinterland, contributing to the growth of the Nigerian economy.

“Working together with the Nigerian Railway Corporation, we believe that the best way to go in terms of cargo movement across the nation is to encourage rail transportation and other modes of transportation. But we have seen that the rail transportation is the best in terms of safety of the cargo, costs and efficiency.

“So we are here to demonstrate that and have this partnership to see how we can develop structures and policies to returning back to the use of rail system to move cargo into the hinterlands, ” he said.

Akutah said the government aims to prioritise export activities to improve Nigeria’s trade balance, which has suffered due to insufficient export growth.

He said by enhancing inland transportation infrastructure and promoting rail for cargo movement, the NSC and NRC aim to strengthen Nigeria’s competitive edge in the African market, ensuring that Nigerian goods can be efficiently transported and exported across the continent.

“This government is focusing on export to see how we can take advantage of the opportunities that are open to shippers in Nigeria under AfCFTA. Africa has a free market today, and the Nigerian market is open to the whole of Africa. We must act proactively to ensure that Nigeria not only participates in but also benefits from the vast opportunities presented by the AfCFTA,” Akutah said.

On his part, the Managing Director of NRC, Fidet Okhiria, stressed the importance of streamlining procedures and fostering collaboration with various stakeholders to maximise the potential of rail transport in Nigeria.

Okhiria identified key challenges affecting rail transport, including insufficient volumes of goods for transport, noting that the NRC often struggles to assemble large enough shipments to justify rail movement, citing the lengthy process it took to gather 17 containers from the hinterlands and move them from Kano to Apapa port.

Okhiria said this is despite the NRC’s efforts to encourage the Manufacturers Association of Nigeria (MAN), importers, exporters, and other industry bodies to consolidate shipments and facilitate bulk transportation, these delays persist.

He emphasised the need for efficiency in terminal operations, stating that the NRC aims to ensure wagons are loaded within one hour and ready to depart within 10 minutes of loading.

He further pointed out that additional charges imposed at terminals pose a significant barrier to the adoption of rail transport, noting that a fee of N60,000 is charged per container.

The NRC boss expressed concern that these special fees at terminals discourage customers from using rail transport.

Regarding the NRC’s operational capabilities, Okhiria noted the potential of the standard gauge rail system to move 35 containers at a time, with the possibility of increasing this to 70 containers using a double-headed train. He added that the narrow gauge system can carry 20 containers at once.

The Chief Executive Officer and Founder of Lelook Nigeria Limited, Mrs Chinwe Ezenwa, expressed delight at the partnership between the Shippers’ Council and the NRC, urging both parties to work towards executing the MoU signed to improve rail transportation of cargoes.

Ezenwa, whose company manufactures bags emphasized that the successful execution of the MoU would bring down the cost of manufacturing and boost business operations especially for
for exporters.

Speaking on the challenge of insufficient volumes of goods for transport identified by the NRC Managing Director, Ezenwa attributed it to a lack of communication.

According to her, manufacturers have cargo to move but are unaware of the services offered by the NRC.

She suggested that the NRC should advertise its services more effectively, engaging the media to raise awareness about its offerings.

She also recommended sensitization programs and meetings with manufacturers to explore ways to utilize the rail services.

“The rail people are not really advertising their services. I came here now to see that they have a lot to offer but who are they offering it to? The media should be engaged to let us know what is happening in the rail sector. So the issue of cargo to move is not a challenge, we have cargo but we don’t know what they can do with those cargoes.

“So they should do sensitization and call the manufacturers together and we will perform, ” she said.