Two critical agencies in the Marine and Blue Economy and Transportation ministries, the Nigerian Shippers’ Council (NSC) and the Nigerian Railway Corporation (NRC) have signed a Memorandum of Understanding (MoU) to ensure effective movement of cargoes by rail, from the nation’s Ports to the Inland Dry Ports scattered around the country.
The MOU was signed by the heads of the two agencies, Barrister Pius Akutah, Executive Secretary/Chief Executive Officer, NSC and Engr Fidget Okhiria, Managing Director, NRC at a one-day stakeholders summit tagged “Limitations to Rail Transportation of Cargo in Nigeria” organised by the Nigerian Shippers Council in collaboration with the Nigerian Railway Corporation held at the Rockview Hotel, Apapa Lagos on Thursday.
Akutah disclosed that the Council’s initative through closed Inter Agency collaboration, particularly with the NRC is with a view to ensuring: Enhanced intermodal connections and connectivity, Fast-track delivery of cargoes to and from Inland Dry Ports (IDPs) in Nigeria, Cheaper and cost-effective means of transportation of goods to the hinterland and specifically, the IDPs located at the hinterlands; Facilitation of the development of critical transport infrastructure in the hinterland of Nigeria, etc.
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He lamented the absence functional rail system for evacuation of cargo from the seaports to their various destinations.
Barr Akutah noted that the the lack of functional rail system for evacuation of cargo from the seaports to various distribubon centres to the hinterland has become a problem in the shipping industry and ease of doing business in Nigeria.
He disclosed that Rail Transportation is efficent, economical, and safe, especially for long distances and carriage of large volumes of goods and can also reduce greenhouse gas emissions and energy consumption compared with road transportation.
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“The lack of functional rail system for evacuation of cargo from the seaports to various distribution centres to the hinterland has become a problem in the shipping industry and ease of doing business in Nigeria.
This has resulted in congestion at the seaports, delay in off-loading of vessels and turnaround time, payment of demurrage, increase number of trucks and tankers on the road, traffic gridlock and high cost of doing business”.
“It is therefore hoped that at the end of this programme, challenges impinging the transportation of cargoes to the hinterland (IDPs) would be identified and solutions proffered” he said.
On his part, the Managing Director of Nigerian Railway Corporation, Engr Fidet Okhiria described the MoU as significant, even as he warned that seaport terminal operators must provide a conducive environment for Nigerians, importers, and exporters to ensure that goods move cheaply.
