Development Bank Set to Support Major Railway Initiative
The railway project extending from Benin in Edo State through Port Harcourt in Rivers State to Calabar in Cross River State is currently under construction by the South-South Six States, collectively known as the BRACED states. This initiative aims to enhance logistics, foster regional integration, and drive socio-economic growth throughout the region.
Funding Mechanism for the Railway Project
The proposed railway line, championed by the BRACED states—Bayelsa, Rivers, Akwa Ibom, Cross River, Edo, and Delta—is set to receive partial funding from the National Development Bank of Nigeria (NDBN), which is on the verge of becoming operational. This development bank is geared towards promoting regional growth through collaborations with local committees.
Strategic Meeting on Regional Integration
Scheduled to be inaugurated in the last quarter of this year, the South-South center will be the first established branch after the NDBN’s main headquarters in Abuja, with potential for future centers in other regions. The initiative to create an interconnected rail network was unveiled during a closed-door, two-day strategic meeting of investment promotion agencies from the BRACED states, hosted in Port Harcourt.
Feasibility Studies Underway for Project Realization
A special report by Kalada Apiafi from Wider Perspectives Ltd indicates that the railway project is currently in its feasibility study phase, transitioning from concept to actionable plan. This report will be presented to the BRACED committee alongside the six state governments in the South-South region.
Projected Costs and Construction Challenges
With inflation impacting construction costs, the BRACED rail project is estimated to exceed $4 billion (over N6 trillion). The cost of constructing a kilometer of railway varies between $4.6 million and $9.8 million, dictated largely by terrain. To facilitate the realization of this extensive railway network, the BRACED states are exploring public-private partnership models.
Future Expansion Plans and Project Viability
Proponents of the project note that the east-west route measures around 400 kilometers from Benin to Calabar. Plans are in place to extend this railway to key locations, including Onitsha in the west, Onne Port in Port Harcourt, and Ibaka Sea Port in Akwa Ibom, alongside boosting exports from agricultural areas like the cocoa and honey belt in Ogoja.
Government Support and Risk Management Strategies
Mr. Appiafi informed the Strategic Committee that the proposal has garnered strong support from the Federal Ministry of Transport, which could be instrumental in securing funding. He emphasized the need for the feasibility study to address crucial concerns such as financial implications, right-of-way regulations, technical requirements, and market demand analysis. Such groundwork will aid in effective risk analysis and community relations.
