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January 31, 2005
Govt may transfer Railways to private operators
From Nkechi Onyedika Abuja
A CONCESSIONARY programme to revitalise the Nigerian Railways Corporation (NRC) has been approved by the Federal Government.
The government will through the scheme transfer the operation of the parastatal to private operators.
Transport Minister, Dr. Abiye Sekibo, told reporters in Makurdi, Benue State, at the weekend that President Olusegun Obasanjo had set up a committee, which he (Sekibo) heads to work out the modalities for the concessionary exercise. He was in the state to inspect facilities at Markudi-Oturpo route of the NRC and the proposed site of a port on the Benue River.
He said the new operators would manage the NRC's hospital, its printing press and landed property nationwide on mutually agreed terms.
He believes that the Railways after the programme would introduce an efficient, affordable and more secured transport system in the country.
Sekibo, however, lamented the neglect and dilapidation of infrastructure in Nigeria. He said "I am particularly appalled at the level of neglect and dilapidation of infrastructure, that is tax payers' money pulled down in this country. We have seen the river port, which we heard was functioning very well before but unfortunately, over the decades, we have left to rot. You must have seen the rail lines that are hanging on one line. All these show the level of neglect of the transport sector over the decades."
The minister said that the jetty at Abingi in Markudi would be used for the take-off of an export processing plant for agricultural products, adding that the government would extend the Benue railway line to Benue Cement to enable the company convey its products with ease.
"A functional inland waterways and railways system will not only lift the economy of the nation but would also help reduce the level of poverty that we experience in rural areas in this part of the country", Sekibo said.
On the restructuring of the NRC, Sekibo said that the programme under a Public -Private- Partnership (PPP) arrangement was aimed at repositioning the rail system in the country.
He further said that the "government intends to concession rail line development, some railways operations and the management of some NRC facilities, as well as administering of landed property to prospective private sector operators."
When completed, Sekibo said that the concessionary programme would impact on the economy and promote efficiency in rail services, "in line with global best practice."
"The concessionary programme, he continued, would equally provide opportunities for competitive spirit among private sector operators that would engender effectiveness and efficiency."
He observed that there had been so much negative reactions to the various ongoing concessionary programmes, while little had been mentioned about their "vast merits."
Sekibo pledged that the government would turn around the fortunes of the NRC and the rail system towards achieving the desired results in service delivery.`
Posted by Publisher at January 31, 2005 11:00 AM
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