2015 Africa Rail ConferenceNigeria: Country Spotlight

By

ENGR. ADESEYI SIJUWADE, FNSE, FCILT

July, 2015

MANAGING DIRECTOR

NIGERIAN RAILWAY CORPORATION

Infrastructure Development Plan

Railway Development Programme

Opportunities for Private Sector Participation

Conclusion

Overview

Infrastructure Development Plan The backbone of a nation’s economy is its

stock of infrastructure

Typically, for developed countries,infrastructure is responsible for about 70%of GDP, but in Nigeria, infrastructureaccounts for only 35 - 40% of GDP

The infrastructure gap of aboutUSD2.9trillion is intended to be closed overthe next 30 years

To stimulate further growth anddiversification of the Nigerian economy,attract foreign investment and enhance jobcreation, the Federal Government came upwith the Vision 20:2020 roadmap.

Infrastructure Development Plan – Cont’d

• Nigeria’s Vision 20:2020 aims to promote sustained and inclusive economic growth, and elevate Nigeria’s economy to be among the top 20 economies in the world by the year 2020

• Inspired by Vision 20:2020 aspirations, the National Integrated Infrastructure Master Plan (NIIMP) was developed as an all inclusive approach to infrastructure delivery.

• The NIIMP is a 30 year plan that covers “core” infrastructure – Transport, Energy, ICT and Water and others such as Agriculture, Mining, Housing and Social Infrastructure with priority projects outlined for the first 5 years of the plan

Infrastructure Development Plan: Focus on RailVision 20:2020 - At least 40 million tons of freight by 2020.

Action Plans

RAIL • Rehabilitation of the existing narrow gauge rail (3500km network)

• Completion of the Ajaokuta-Warri standard gauge line.

• Rehabilitation of rail links within Nigeria’s main ports.

• Construction of mass transit rail lines in Lagos and Abuja.

• Construction of rail lines to link Inland Container Depots (ICDs) to sea ports

• Concession of the rail lines from Lagos to Kano and from Port Harcourt to Maiduguri. • Expansion of the standard gauge network by 784km

NIIMP

Targets

RAIL • To invest about USD75B over the next 30 years which will include construction of over 6,000

kilometres of new standard gauge lines

• Link all major economic centres to the rail network

• Provide adequate rail infrastructure for even economic development of the country.

• Create an enabling environment for private sector participation in the provision of rail infrastructure.

Railway Development Programme - Background

The Nigeria Railway system is about 117yearsold.

Between 1898 and 1964 Nigeria had built anetwork of narrow gauge rail lines totaling3505km.

In 1986, the Federal Government of Nigeriacommenced the construction of 326 km standardgauge rail line phase 1 from Itakpe – Ajaokuta –Warri.

However, for over two decades, the rail systembecame comatose up till 2009 when thegovernment commenced implementation of a 25year Strategic Vision to revive the sectoradopting a systematic dual approach.

This entails the rehabilitation of the entireexisting narrow gauge lines simultaneously withthe development of standard gauge lines.

In February, 2011 the Federal Government ofNigeria commenced the construction of 187.5km Abuja – Kaduna Standard gauge rail line.

HISTORICAL DEVELOPMENT OF

RAILWAYS IN NIGERIAGOMBE – MAIDUGURI 1963 – 1964(302km)

BAUCHI – GOMBE

1961 – 1963(166km)

KURU – BAUCHI

1958 – 1961(166km)

KADUNA JUNCTION -KAFANCHAN 1922 –1927(179km)

ENUGU-MAKURDI

1916 – 1924(220km)

PH - ENUGU

1914 – 1916(243km)

KANO - BARO

1907 –1911(562km)

JEBBA - MINNA

1909 -1915(225km)

IBADAN - JEBBA

1901 –1909(295km)

LAGOS - IBADAN

1898 –1901(193km)

KAF – JOS OPENED 1927

(101km)

PH – ONNE ON-GOING 19km

AJAOKUTA – WARRI ONGOING (277km)

Railway Development Programme – Track Rehabilitation

The rehabilitation of over 90% of theentire 3500km narrow gauge networkthroughout the country is nearcompletion.

Rehabilitation of the Lagos to Kano,and Port Harcourt to Gombe lines iscompleted and passenger services andhaulage of goods along the lines havesince commenced.

Rehabilitation of sidings and loop linesalong the Western line, including linksto key industrial locations betweenLagos and Kano and a spur line to theKaduna Power Plant Complex isexpected to be completed by end of2015.

Railway Development Programme – Update on Rehabilitation Projects

Contract Distance Contractor Physical Progress

Track & Signalling – Western Line (Lagos –Jebba)Lagos – Ibadan – Ilorin - Jebba

488km CCECC Nig. Ltd. 100%

Track & Signalling – Western Line (Jebba – Kano)Jebba – Minna – Kaduna – Zaria - Kano

636km Costain (WA) Ltd 99.5%

Signalling & Telecoms – Eastern and Western LinesUpgrading of Signalling Equipment

1,657km A3&O / Gear Group / Ansaldo 45%

Track– Eastern Line (PH – Makurdi)PH – Umuahia – Enugu - Makurdi

463km Eser Contracting W. A 85%

Track – Eastern Line (Makurdi – Kuru, Plus Spur Jos & Kafanchan)Makurdi – Lafia – Kuru – Spur to Jos – Kafachan and Kaduna

554m CGGC 85%

Track – Eastern Line (Kuru – Maiduguri)Kuru – Bauchi – Gombe - Maiduguri

640km Lingo 47%

Track – Zaria – Kaura NamodaZaria – Funtua – Gusau – Kaura Namoda

221km Duluidas 90%

Addendum to Lagos to Jebba ContractRehabilitation of Sidings & LoopLines from Lagos – Kano and Construction of a link to the 215 MW Power Plant at Kaduna

Lagos – Kano CCECC 65%

Railway Development Programme – Track Rehabilitation

Track Condition at Aba Before Rehabilitation

Akerri Bridge Before Rehabilitation Akerri Bridge After Rehabilitation

Track Condition at Aba After Rehabilitation

Railway Development Programme - Construction of New Standard Gauge Lines

Construction of the Itakpe – Ajaokuta –Warri Standard Gauge line (277km) is inprogress and expected to be completed byend of 2015.

Construction of Abuja(Idu) – KadunaStandard gauge line (187km) is over 85%also expected to be delivered end of 2015.

Construction of Lagos – Ibadan StandardGauge (double track) 2 x 180km has beenawarded and will commence as soon asfunding arrangement is concluded with theChina Exim Bank by the Federal Ministryof Finance.

Abuja - Kaduna

Itakpe –Ajaokuta – Warri

States Light Rail project

Various State Governments areembarking on light rail projects toaddress the urban transportationchallenges:

Lagos State rail mass transit BlueLine project is ongoing

River State Mono-rail project inPort Harcourt is about 95%completed

Ogun State has just award aninter/intra state rail constructionproject to the CCECC

Abuja Light Rail project is nearingcompletion

Blue Line, Lagos

Railway Development Programme - Locomotives and Rolling Stock

FUNCTIONAL REPAIRABLE

LOCOMOTIVES

• Shunters

• Mainline

29 55

WAGONS

• Container

• Oil Tank

• Covered

• Hopper

• Wooden

250 550

COACHES

• Standard

• 1st Class

• Sleepers

• Canteen

• Inspection

• Baggage Vans

120 50

Refurbished 250 wagons

Refurbished 120coaches

Procured 25Nos. 2500HP GE Locomotives

Procured 4 Nos. 1800HP CNR Locomotives

Procured 40Nos. Oil Tank Wagons

Procured 2Nos. 100ton Telescopic Cranes

Procured 4Nos. 60ton Overhead Cranes

Procured 3 Nos. Inspection Vehicles

Procured 5Nos. Rail Road Recovery Vehicles

Procured 3 Nos. Wheel Lathe Machine, fully installed

Procured 2 Sets of Diesel Multiple Units (DMU)

Procured 11Nos. 68-Seater Air-conditioned Coaches

Procured 18Nos. 4-Seater Motorized Rail Trolley

Procured 2Nos. 16-Seater Rail Buses & 2Nos. Rail Cars

Ordered 2Nos. 1800HP CNR Locomotives and 2Nos. Power Cars to be delivered in 2015

Ordered for 2Nos. 3,500 HP Locomotives with in-built power car and 5Nos. Air Conditioned Coaches for Standard Gauge Line to be delivered in 2015

Railway Development Programme – Modernisation of Locomotives & Rolling Stock NRC is moving towards localization and skills transfer

Modernization of NRC’s existing, GE Transportation U-series and other EMD series locomotives

Modernisation of 60Nos. Flat Bed Wagons (Primarily used for movement of bonded containers from Ports)

Modernisation of 20Nos. Pan Xtra Goods (PXG) Covered Wagons (Primarily used for movement of bagged cement)

Modernisation of 40Nos. Covered Hopper Wagon (CHW) Primarily used for movement of Wheat

Modernisation of 6Nos. Power Cars (Housing generators that supply electricity for air-conditioning and lighting in passenger coaches)

Railway Development Programme - Current Train Operations

• Passengers Service

Intra-city Mass Transit:

Lagos Mass Transit Train: 18 Trips per day, Kaduna Intracity Mass : 10 Trips per day

Intercity Passenger Service:

Lagos – Kano –Lagos Train: twice per week,

Lagos-Ilorin-Lagos Train: thrice per week,

Offa – Kano - Offa Train: Once a week,

Minna – Kaduna – Minna Train: thrice per week,

Kano – Nguru Train: twice per week,

Enugu – Port Harcourt – Enugu twice per week

Port Harcourt – Kafanchan once a week

Kaduna – Gombe – Kaduna once a week

Excursion Trains: Highly patronized during festivities

Coming Soon: New Mixed Trains from Kano –Port Harcourt , and Gombe to PH to commence in July, 2015

• Freight Service

Flour Mills (Wheat) Traffic: Lagos to Kano,

carrying about 3,000 tons per month

Lafarge Cement Traffic, Lagos to Kano, carrying

about 3,000 tons monthly

Movement of containers for ICNL: Lagos to Kano

about 2,000 tons monthly

Track Materials for Eastern Line Contractors, about

9,000 tons monthly

Movement of Petroleum Products for NRC and

Connect rail: Lagos to Kano

Coming Soon – Container Traffic for APM, Lagos

to Kano

0

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

2009 2010 2011 2012 2013 2014

OPERATIONAL PERFORMANCE – PASSENGER SERVICES

Opportunities for Private Sector Participation - Projection Of Train Services Over The Next 10 Years

Route 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Narrow Gauge

Eastern Line (PortHarcourt - Maiduguri)

Western Line (Lagos - Kano)

Standard Gauge

Itakpe - Ajaokuta - Warri

Abuja - Kaduna

Lagos - Ibadan

Zaria –Kaura Namoda- Birnin Konni

Ajaokuta(Eganyi) - Obajana - Abuja

Ajaokuta - Oturkpo - Onitsha

Eganyi(Near Ajaokuta) - Lokoja - Abaji -

Abuja

Lagos - Abuja (High Speed)

Opportunities for Private Sector Participation - Projected Rolling Stock Requirement For The Next 10 Years

Rolling Stock 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 total

Locomotives

20 25 20 25 230 37 42 44 42 50 535

Coaches 100 100 100 100 846 200 200 100 100 200 2,046

Wagons 350 250 250 200 3,100 1,250 200 200 200 200 9,300

Opportunities for Private Sector Participation – PPP Initiatives

Finance, Supply, and jointly manage with

NRC, utilization of wagons to enhance

freight haulage capacity

Finance, Supply, and jointly manage with

NRC, utilization of coaches to enhance

passenger carriage capacity

Design, Build, Maintain, Operate, and

Transfer (DBMOT) of Warehousing to

provide suitable, safe and secure storage

space for goods

Finance, Supply, and Operate modern

facilities and provide services for loading

and offloading of goods

1) Logistics Services

Remodelling and Redevelopment of 9 Major Railway

Stations to incorporate Commercial Outlet

2) Station Remodelling and Redevelopment

Development of 8Nos. Railway Landed Properties at

Prime locations for Residential, Hotel and other

Commercial purposes

3) Development of Railway Landed Properties

Outline Business Cases (OBC) for the 3 PPP

initiatives are being finalised by our

Transaction Advisers following which

Procurement Process for PPP Consortiums

will commence

S/N FEASIBILITY STUDIES COMPLETED1 Lagos - Abuja (High Speed 550km)2 Ajaokuta (Eganyi)-Obajana-Jakura-Baro-Abuja with additional line from Ajaokuta - Otukpo - to include the

Anyigba - Ejule - Idah - Adoru - Nsukka - Adani - Omor - Anaku - Aguleri - Nsugbe - Onitsha Rail Line (821km)

3 Zaria-Kaura Namoda-Sokoto- Illela -Birnin Konni (Niger Republic - 520km)4 Benin-Agbor-Onitsha-Nnewi-Owerri-Aba with additional line from Onitsha-Enugu-Abakaliki (500km)

5 Eganyi(Near Ajaokuta) - Lokoja - Abaji - Abuja (280km)

FEASIBILITY STUDIES ON-GOING6 Kano – Bichi - Katsina – Jibiya (354km)7 Sokoto – Birnin Kebbi - Jega – Yauri - Makera with a branch line to Kontagora (408km)8 Aba – Ikot Ekpene - Ibiono - Itu (Spur Uyo) Odukpani Calabar (340km)9 Port Harcourt – Aba – Umuahia – Enugu – Makurdi – Lafia - Jos – Bauchi – Gombe- Biu - Maiduguri (1,552km)

10 Calabar -Ikom – Obudu – Ogoja – KatsinaAla – Wukari – Jalingo – Yola – Maiduguri (1,069km)11 Kano – Nguru – Gashua – Damaturu – Maiduguri – Gamboru Ngala (707km)

Opportunities for Private Sector Participation – Greenfield Projects

20

Conclusion

Nigeria is making appreciable efforts to address its infrastructure challenges

The Federal Government has demonstrated great commitment towardsRevitalization and Modernization of the rail system

However, Government cannot fully address the Railway infrastructural challengeswithout significant involvement of the private sector

The Government is making efforts to provide the enabling environment foreffective Private sector participation in the country’s rail sector - The NigerianRailway Corporation Act of 1955 is in the process of being repealed and re-enacted. The draft Bill has been forwarded to the National Assembly.

Nigeria’s investment climate is currently very attractive hence the increase in theFDI inflow in recent times

Now is the time to take advantage of the enormous opportunities in Nigeria RailSector.

Thank you for Listening