Shippers Council, NRC Sign MoU to Enhance Rail Movement of Cargoes from Ports to Hinterlands

—As NRC Shames Terminal Operators for Imposing Additional N60,000 per Container on Rail Cargoes

By DAPO OLAWUNI

The Nigerian Shippers Council has signed a Memorandum of Understanding (MoU) with the Nigerian Railway Corporation (NRC) in order to ensure effective movement of cargoes by rail, from the nation’s Ports to the Inland Dry Ports scattered around the country.

This is even as the Nigerian Railway Corporation has expressed concerns that seaport terminal operators were imposing an additional N60,000 per container on rail movement of cargoes, which is a major deterrent.

The MoU was signed in Lagos on Friday at a one-day stakeholders summit tagged “Limitations to Rail Transportation of Cargo in Nigeria” organised by the Nigerian Shippers Council at the Rockview Hotel, Apapa Lagos.

In his welcome address, the Executive Secretary of the Nigerian Shippers Council, Barr Pius Ukeyima Akutah said that in line with their statutory mandates, the Council and NRC, are desirous of collaborating with the aim of ensuring and facilitating the efficient Carriage of cargoes from the Seaports to the Inland Dry Ports (IDPs).

He said “The Counal’s initative through closed Inter Agency collaboration, particularly with the Nigenan Ravway Corporation (NRC) is with a view to ensuning:

“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.

“We should note that Rail Transportation is efficent, economical, and safe, especially for long distances and carriage of large volumes of goods.
It can also reduce greenhouse gas emissions and energy consumption compared with road transportatbon” he said

Barr Akutah noted that the the lack of functonal 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.

According to him, 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.

Speaking in the same vein, the Managing Director of Nigerian Railway Corporation, Eng 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.

According to him, charging special rail fees at the terminal is a major hindrance, discouraging customers from using rail transport.

“When goods are transported by rail, there should be no extra charge, but currently, an additional cost of 60,000 per container is imposed, which is a deterrent.

“The government is working to ensure that the public benefits from their initiatives, such as connecting the rail to the port.
The rail is now at the port, and we have businessmen at the terminal.

“However, loading the wagons often takes two to three days, which is problematic. Now that the Shippers Council is taking control, I believe the process will become more efficient, and the roads will be less congested.
Using rail transport will allow raw materials to reach various factories more efficiently.

“The standard operating procedures and principles have been captured in the MOU, and we will ensure that, on our side, we will not be found wanting.

“The real challenge is ensuring that we have goods to carry. Last time, we moved 17 containers from Kano, and it took time to gather those containers from across the North. We also need to encourage Nigerian manufacturers to consolidate their shipments so that we can transport them efficiently.

“However, some importers are hesitant to embrace rail transport, possibly due to a lack of confidence.

“The standard gauge rail can move 25 containers at a time, but we can increase that to 70 using double-headed trains. The narrow gauge can move 20 containers at a time. However, the real issue is finding enough goods to transport; that is the bitter truth.

“We are searching for goods to carry. The terminal should be able to load the wagons within one hour, and once loaded, we are ready to move within the next 10 minutes.

“We do not delay within the terminal; any remaining tasks are handled outside the terminal, and the train will be ready to go” he said