Sambo Unveils Opportunities in Transport Sector to Foreign Investors, Assures of ROI

The Honourable  Minister of Transport, Alhaji Muazu Sambo, last week in the United States of America presented varieties of investment opportunities in Nigeria’s transport sector to foreign investors assuring them of guaranteed and secure return of investment in the country.

Among the areas of investment which the Minister presented to the investors include maritime, rail, inland dry ports and inland waterways subsector.

The Minister said that with Nigeria’s 200million population spread across almost one million square km of land area, no foreign investor will regret investing in the country.

While speaking on a paper titled "Financing Transport Infrastructure" and delivered at the Nigerian International Economic Partnership Forum in New York, USA, Sambo identified areas of investment opportunities for foreign investors also assured them of promising return on investment.
On the opportunities available in the maritime sector, he said, “the six seaports were concessioned in 2006 to private investors in order to create efficiencies, increase revenue and the general well-being of the economy; “However, as it can be seen from their various dates of operations, the port infrastructure has suffered dilapidation and decay over the years and they now require massive capital investments for upgrade and rehabilitation; therefore, herein lies an opportunity for private capital investments in the face of highly competing demands on the nation’s income flows.

“This particularly applies to Apapa and Tincan Island ports which account for about seventy per cent (70%) of the nation’s maritime trade.
“The Ports of Calabar and Warri, also present investment opportunities in dredging, to maintain a regular draught of about 7.5m”.
On the opportunities in the inland dry ports, the honourable Minister said, “In order to decongest seaports, improve supply chain logistics and bring shipping activities closer to shippers in the hinterland, Nigeria has initiated the development through the Nigerian Shippers Council, for inland dry ports as ports of origin and destination. Nigeria now has a fully operational inland dry port in Kaduna, while other inland ports in Kano, Katsina, Aba, Ibadan, Jos and Funtua, are at various stages of development and completion.
“Against the backdrop of Nigeria’s extensive landmass and population, herein also lie opportunities for private capital investments in inland dry ports and rail networks targeted at the manufacturing, agriculture and solid minerals base of the country”.

On inland waterways subsector, Sambo revealed that Nigeria has about ten thousand kilometres (10,000 km) of potentially navigable waterways out of which only three thousand kilometres (3,000 km) are currently navigable all year round. This creates a lot of opportunity in the inland waterways subsector as an alternative, cost-effective and environmentally friendly mode of transport connectivity.

“Capital/maintenance dredging of five hundred and seventy-two kilometres (572km) had been concluded along the Lower River Niger inland waterways with river ports/jetties at Onitsha, Lokoja and Baro.
“There are current initiatives concerning the survey and charting of the river Niger, to put in place a structured channel management programme in collaboration with private investors. “While the Onitsha port has already been concessioned to private investors, other opportunities in this subsector include the concession of Oguta, Baro and Lokoja ports; Operation of ferry (passenger) and freight (cargo) services along the inland waterways corridor; 

development of additional river ports and jetties along other inland waterways navigable routes on Public Private Partnership (PPP) arrangements and the development of tank farms along the inland waterway corridors to leverage the waterways for the carriage of petroleum and other bulk liquid cargoes to the hinterland”

The Minister also revealed that opportunities that exist in the rail sector for private sector investments were limitless, stating “The unbundling of the Nigerian Railway Corporation which now acts as owner, operator and regulator rolled into one is essential for efficiency, effectiveness, enhanced productivity and the creation of more jobs and revenue flows. “Concessioning of the operation of the newly constructed standard rail lines, namely Abuja-Kaduna (187.5km), Warri – itakpe -Ajaokuta ( 326km) and Lagos – Ibadan ( 118km).

“Development of inter-State and intra-state train Services (Mass transit and freight/parcel Services) in the state capitals and major commercial cities. Kaduna-Zaria, Kaduna-Kafanchan, Intra-State and Kaduna-Minna inter-state mass transit train services; Kano – Challawa and Kano – Nguru intra and inter-state mass transit train services and Lagos – Oshogbo inter-state mass transit train Services.
“The remodeling and redevelopment of major railway stations to incorporate modern commercial outlets and warehousing facilities at the following stations: Iddo and Ebutte-Metta in Lagos; Ilorin in Kwara State;Minna in Niger State; Kaduna in Kaduna State; Kano in Kano State; Port Harcourt in Rivers State; Aba and Umuahia in Abia State; Enugu in Enugu State; Makurdi in Benue State; Jos in Plateau State; Gombe in Gombe State and Maiduguri in Borno State.

“Provision of the following ancillary facilities in major rail terminals and stations along the standard gauge corridor:Restaurants, E-ticketing offices, Hotels,VIP Lounges and Industrial Parks”.

The Minister also presented different models of investment available to the foreign investors as:
“Design, build, finance and transfer (DBFT);
• Design Build Finance Operate and Transfer (DBFOT)
• Build, Operate and Transfer (BOT)
• Build, Own, Operate and Transfer (BOOT).
• Design, Build, Finance and Operate (DBFO)
He added that the models have the propensity to be successful “when there is access to capital, enabling environment/institutional framework and adequate legislation”.