Rhe Nigerian Shippers Council (NSC) has signed a memorandum of understanding with the Nigerian Railway Corporation (NRC) to improve the movement of goods from ports to inland areas. This agreement aims to enhance the efficiency of transporting cargo from seaports to Inland Dry Ports (IDPs).
At a recent stakeholder event in Lagos, Pius Akutah, executive secretary of the NSC, highlighted the challenges posed by the current lack of a functional rail system. He noted that the absence of effective rail transport has led to congestion at seaports, delays in vessel discharge, and increased turnaround times for ships, which in turn raises business costs due to high demurrage fees and road traffic.
Akutah emphasized that the new collaboration with the NRC is intended to improve intermodal connections, speed up cargo delivery, and offer a more cost-effective transportation solution.
Fidet Okhiria, managing director of NRC, supported this initiative, noting that rail transport is cheaper compared to road transport. He explained that moving a container from Lagos to Kano by rail costs about N1.2 million, while by road it can reach N1.5 million. Okhiria added that a standard gauge train can replace 35 trailers on the road by transporting 35 containers at once.
Despite these advantages, Okhiria expressed concerns about the low adoption of rail transport by importers and exporters. He revealed that it took the NRC a significant amount of time to gather 17 containers for transport from Apapa Port to Dala Inland Dry Port in Kano. Okhiria encouraged collaboration with the Manufacturing Association of Nigeria and urged terminal operators to facilitate the use of rail transport.
Akinwunmi Oshilowo, NRC’s director of Operations and Commercial Services, reported issues with vandalism of railway assets at Apapa Port and challenges caused by truck congestion blocking railway access. These issues complicate the operation of NRC locomotives and hinder efficient cargo movement.
Ify Okolue, director of Inland Transport Services at the NSC, explained that the goal of the recent stakeholder program was to address infrastructure challenges and explore potential public-private partnerships to enhance rail transport services.
The NSC and the Federal Ministry of Marine and Blue Economy remain committed to creating a seamless rail transport system to improve cargo movement from seaports to IDPs and inland areas.
