How NPA, Connect Rail partnership aims to boost export of agro-commodities

Determined to support the Federal Government’s effort to diversify the economy from being oil driven to non-oil, the Nigerian Ports Authority (NPA) recently entered into partnership with the management of Connect Rail Maritime Services Limited to power agro-commodities export through the nation’s seaport.

This effort was seen in the designation of Ikorodu Lighter Terminal by the NPA as an agricultural export terminal to significantly improve the challenges that agro-commodities exporters have been facing in moving their cargo as a result of the ports congestion in Apapa.

With the designation, Connect Rail Services Limited was able to move containerised export cargoes from Ikorodu Lighter Terminal to Apapa port through the inland waters using barges to avoid gridlock on Apapa road, which hold trucks for weeks before accessing the port.

Statistics shows that Nigeria has about 10,000 kilometres waterways, which if developed through dredging and provision of auxiliary facilities will provide all year-round navigation for transportation of bulk cargo and passengers.

Also, with Over 8, 000km of navigable waterways, Nigeria has the second longest length of waterways in Africa. This is as 28 of the nation’s 36 states can be accessed through water, linked to five neighboring countries (Benin Republic, Equatorial Guinea, Cameroon, Chad and Niger).

It is also worthy to note that globally, in the US for instance, coal for the electricity industry, petroleum products, construction industry aggregates and cement, chemicals, including fertilizers, metal ores and minerals, heavy products such as steel and many other manufactured products are moved through its inland waterways.

“Cargos evacuation through the waterways is a very significant development that seeks to enhance and strengthen intermodal transportation system. It means a lot to the nation’s economy, because the current concerns for port users revolves around the huge revenue lost to congestion on the roads leading to the ports,” Hadiza Bala-Usman, managing director of the NPA, said during the flag-off ceremony held in Lagos recently.

According to her, NPA believed that export of agric produce and solid minerals require priority consideration, and intermodal transportation was seen as one of the initiatives to achieve that target.

Giving insight into why Connect Rail entered into the partnership, Edeme Kelikume, managing director of Connect Maritime Services, said in an interview that the Nigerian Ports Authority is an example of an agency working hard to provide an enabling environment for businesses to thrive. “Their unwavering support in encouraging the emerging barging services industry is why we are still in barging business today.

According to him, Nigeria’s internal freight mix is dominated by road haulage, as the country’s rail network remains dilapidated and underdeveloped while the utilisation of inland waterways has also remained extremely poor.

Customers, he said, are looking for cost reduction, efficiency, enhancements for their growing markets especially as regards to dealing with congested roads and ports. “Inter-modality becomes more important to provide them with guaranteed services and capacities at reasonable prices.

Kelikume, who attributed Connect Rail achievement to a consistent focus on building business despite the myriad challenges and continued support from the leadership of the NPA, said that shippers and consumers in the 38 states in the USA depend on inland waterways to move about 630 million tonnes of cargo, valued at over 73 billion dollars annually.

“The untapped opportunity in utilising barge, rail and truck for cargo transportation as a critical driver for economic growth of the nation and the significant environmental and social impact on its people, is what inspired us to setup of Connect Rail,” he said.

Continuing, he said: “Nigeria’s railway infrastructure if well-developed like countries like South Africa can carry larger volumes over greater distances, making it more economical, and quicker for transporting heavy cargo. The use of rail over trucks to transport containers from maritime facilities could help ease container backlogs and reduce congestion on Nigeria’s roads.”

Kelikume however disclosed that Connect Rail is looking to build a regionally focused business with inland waterways as a means for cargo transportation.

Uzoamaka Anagor-Ewuzie