Shippers' Council, Customs, and Stakeholders Seek Solutions for Effective Rail Cargo Transportation in Nigeria

Port Harcourt, Nigeria – The Nigerian Shippers' Council (NSC), in collaboration with the Nigerian Railway Corporation (NRC), has concluded a one-day summit aimed at addressing the challenges hindering efficient rail cargo transportation in Nigeria. Themed "Limitations to Rail Transportation of Cargo in Nigeria," the event, held on March 25, 2025, at Bougainvilla Hotel, Port Harcourt, Rivers State, brought together key stakeholders from the transportation and logistics sectors.

Rail System Vital for Economic Growth – NSC

In her address, Mrs. Agatha Ify Okolue, Director of NSC’s South-South Zonal Coordinating Office, emphasized the crucial role of rail transport in national development, noting that it is the "backbone of industrialized nations." She acknowledged ongoing government efforts to improve Nigeria’s railway infrastructure but highlighted persistent challenges, including insufficient rail coaches, funding constraints, and low patronage.

Mrs. Okolue commended the Federal Government and NRC for their commitment to railway development and expressed optimism about the 6.2km Port Harcourt–Aba railway project, which she said would enhance connectivity and ease of doing business. She also noted that rail freight currently accounts for only 3.2% of cargo movement in Nigeria but has the potential to significantly reduce port congestion, lower demurrage costs, and improve hinterland trade.

Efficient Transport System Key to Trade Growth – NSC CEO

Barr. Pius Akutah, Executive Secretary/CEO of NSC, represented by Mr. Mustapha Zubairu, Director of Inland Transport Services, highlighted the economic impact of transportation on both domestic and international trade. He stressed that cost-effective and environmentally friendly transportation is essential for improving Nigeria’s export competitiveness and reducing the cost of imported goods.

Customs’ Role in Cargo Evacuation

In his presentation titled "The Role of Nigeria Customs Service in the Evacuation of Cargo from Seaports to the Hinterland," Comptroller Mohammed Babandede, Customs Area Controller of Onne Area II Command, represented by CSC Akinwale Fatoki, outlined the Customs Service’s role in ensuring seamless cargo movement.

He explained that the Nigeria Customs Service Act (NCSA) 2023 facilitates cargo evacuation through bonded warehouses and rail, road, and barge transportation. He also emphasized how the Pre-Arrival Assessment Report (PAAR) speeds up clearance and how the newly introduced Unified Customs Management System (UCMS) “B’Odogwu” will modernize Customs operations.

"The B’Odogwu platform will improve cargo clearance efficiency by integrating risk profiling, real-time cargo monitoring, and valuation intelligence into a centralized digital system," Babandede stated, adding that the system was first piloted at PTML Terminal in October 2024 and will soon be extended to Apapa, Tin Can Island, and Onne ports.

Challenges and Solutions for Port Congestion

The summit also addressed key factors contributing to port congestion, including:

• Inadequate infrastructure

• Inefficient port operations

• Regulatory delays

• Limited hinterland connectivity

• High cargo volumes

Recommendations for improving cargo evacuation included:

• Expanding and modernizing port infrastructure

• Investing in cargo-handling equipment and storage facilities

• Developing rail and inland waterway transport alternatives

Babandede noted that 95% of cargo evacuation in Nigeria currently relies on road transport, causing severe gridlock and high transportation costs. He emphasized the urgent need for alternative transport solutions, particularly rail and waterways, to decongest the ports.

Rail Infrastructure Development Key to Seamless Cargo Movement

Mr. James Atilola of NSC presented a paper on "Enhancing Railway Infrastructural Development for Seamless Movement of Cargoes from the Seaport to the Hinterland: The Way Forward." He identified funding, operational challenges, and security concerns as major obstacles and recommended increased investment in railway infrastructure to address project delays.

Stakeholders Call for Policy Engagement and Investment in Rail System

During the stakeholders’ goodwill messages, industry leaders, including:

• Mr. Moses Okorie, representing ANLCA Chairman, Port Harcourt Airport Chapter

• Comrade Uche Ogbu, Chairman, Haulage District of Maritime Workers Union of Nigeria

• Dr. Benson Ogbonna, representing Port Harcourt Chamber of Commerce

• Mr. Bernard Ekawu, Area Manager, National Inland Waterways Authority

• Chief Sir Ernest Elochukwu, former ANLCA National President

praised the NSC for organizing the summit and called for continuous engagement of stakeholders in policymaking.

While many focused on rail sector limitations, Chief Sir Ernest Elochukwu urged stakeholders to also consider its potential benefits for Nigeria’s economic growth.

Terminal Operators Making Progress – ANLCA Chairman

Responding to NRC’s presentation, Chief Ifeanyi Isikaku, ANLCA Chairman, Onne Seaport Chapter, defended terminal operators, stating that they are making significant investments in the sector. He cited the West Africa Container Terminal (WACT)’s $15 million investment at Onne Seaport as evidence of progress.

He also clarified that no Dry Port currently exists in Isiala Ngwa, Abia State, as earlier mentioned in the discussion.

Conclusion: A Call for Collaboration

The summit concluded with a strong call for government agencies, private investors, and transport operators to work together in revitalizing the rail sector for cargo movement.

"A well-functioning rail system will not only decongest roads but also promote economic growth and regional trade competitiveness," CAC Babandede stated.

With continued investment, policy reforms, and stakeholder collaboration, the summit participants agreed that Nigeria’s rail system can play a transformative role in enhancing the country’s logistics and trade efficiency.