FG to Fund Port-Harcourt Eastern Narrow-Gauge Railway With 85% Loan From China

President Muhammed Buhari on Tuesday in a virtual meeting flagged off the US$3.2 billion Port-Harcourt to Maiduguri narrow gauge railway reconstruction project with new branch lines to Owerri, Imo State and Damaturu, Yobe State.

The project which is to be co-financed by an 85% loan from a syndicate of Chinese financiers with the Federal Government contribution of 15% of the project cost.

Upon completion, trains on the Port Harcourt to Maiduguri Eastern Narrow Gauge Railway will run at 60 to 80 kilometers per hour Kph and 80 to 100 kilometers per hour Kph for freight and passenger respectively.

“This investment gain can be attributed to the unrelenting effort of the Ministry”, Buhari said.

The President, through his virtual address, informed that the objective of the project was resuscitating the once vibrant railway transportation in the Eastern railway corridor of the country, Port Harcourt – Maiduguri.

He also noted that his administration was further expanding it to achieve contemporary demand for transport in the North East and Southern geopolitical zones of the country.

“It is also designed to link other standard gauge rail lines under construction through the provision of transshipment centers.” He added.

According to President Buhari, 85% of the fund for the railway project will be through loan and the Federal Government’s contribution will be 15% as counterpart funding.

“The second and the third projects are the Bonny deep seaport and a Railway Industrial Park, Port Harcourt that are to be constructed through direct investments by our Chinese partners and international financing agencies.”

“This improved port is designed to be a regional and international transport hub. In line with the global trends, the Railway Industrial Park will have the capability for processing exports of raw materials with value addition and also export of locally made goods.

“In planning this project, prudent use of resources has been given priority, as, by this endeavor, Nigeria will retrieve the old narrow gauge that has been lying in neglect for years and bring it to fully functional state commensurate to a National railway service at a rational price.

“The Port Harcourt – Maiduguri railway will translate to reactivation of economic activities along the Eastern corridor, which has been greatly affected by insurgent activities and serve as a stimulus for industry and trade.

“The connection of the railway to a new seaport in Bonny Island and Railway Industrial Park, Port Harcourt is designed to increase the viability and boost transshipment of cargo and freight locally, across the West African sub-region and in the Continental Free Trade Area.”

In attendance is the Minister of Transport Rotimi Amaechi, Minister of Information and Culture, Lai Mohammed as well as Governors and other government top government officials.