POWERCHINA joins Nigeria's rail restoration project
DATE:2018-05-07
Nigeria's ministry of transportation reached an agreement for a
joint venture on a railway restoration project in Washington on April 28, 2018.
According
to the agreement, the joint venture, undertaken by Power Construction
Corporation of China (POWERCHINA), General Motors, Transnet (South Africa's
state-owned freight transport and logistics company) and APMT, a terminal
operator of the Netherlands, will restore the western rail line of Nigeria.
Nigeria's
eastern railway and western narrow-gauge rail line run through the country's
north-south economic corridor for 3,457 kilometers.
A
1353-km eastern mainline railway from Harcourt Port to Gombe, a 213-km eastern
extension line, a 1356-km western mainline railway from Abuja to Nguni, and a
447-km western extension line will be operated and restored under a franchise
mode.
Under
that mode, the rail system is expected to serve as a key path linking the main
ports and all cities around Nigeria, as well as connecting the country's
economic and political centers. It will effectively reduce the cost of road
transportation, improve port logistics efficiency, and boost economic
development in areas along the rail lines.
During
the 18-month-long transition period, which is part of the franchise period,
POWERCHINA will be responsible for the infrastructure restoration of some
segments of the western narrow-gauge rail line. Upon completion, it will help
reduce the occurrence of train derailments and safeguard the delivery of goods.
Furthermore, the joint venture will offer locomotives and carriages to
Nigeria's railway company.
In
addition, the new agreement is a milestone marking POWERCHINA's innovative and
diversified development in Nigeria. As the largest market in Africa, Nigeria is
a key part of POWERCHINA's global layout.
Since
POWERCHINA has entered the Nigerian market, the company has implemented
projects worth $1 billion, with installed capability of 1,805 megawatts.
Besides, the contract value of projects under construction amounts to $900
million while some $4 billion of other contracts are waiting for
implementation. The contract value of key projects has exceeded $8 billion.