Background
Following the signing of this historic contract, the Ogun State Intra State Standard Gauge, will join the growing list of standard gauge (1435 mm) projects approved for the South West of Nigeria. The Lagos Blue Line and Red Line should witness accelerated growth, following the synergy that is expected to be created between Lagos State and the Federal Government (Following the election proceedings). The Ogun State project covers a greater distance than the Lagos Blue Line, but it should be noted that there are other projects within the Lagos State Mass Transit Scheme (Refer to this link). The Ogun State Standard Gauge Intra State railway, with a 334 Kilometre track is thus more comparable to the Abuja Mass Transit (280 km). The Ogun State railway project is additionally expected to become one of the fastest rail systems in the country, with top speeds of 120 km/hr. Only the Lagos - Kano high speed route will be faster (Note - the Abuja - Kaduna and Lagos - Ibadan routes are segments of the Lagos - Kano line).
Specifications
So what are the specifications? We are looking at 15 Stations, so the stops will be quite some distance between each other. The contractor should naturally be CCECC of China and the contractual amount is a whopping $3.5 Billion. Therefore this is the second most expensive rail project in the Nigerian Pipeline (although the total cost for the Abuja Railway is not yet disclosed). The colossal Coastal Railway project which will span from Lagos - Cross River State, will of course be the most expensive at $12 Billion.
Opportunities
With the execution of this project, we can expect the machinery, locomotives, electrical and mechanical components to contribute $500 Million worth of Chinese export content, which is good for the Chinese Investors as key stakeholders. However the promise for the Nigerian economy, lies in the fulfillment of an effective transport corridor. Another key benefit is that 6,000 direct jobs and 20,000 indirect jobs for Nigerians, will be created during the construction phase and 7,000 permanent jobs thereafter.
Written by T.Adeniyi for BBB
Following the signing of this historic contract, the Ogun State Intra State Standard Gauge, will join the growing list of standard gauge (1435 mm) projects approved for the South West of Nigeria. The Lagos Blue Line and Red Line should witness accelerated growth, following the synergy that is expected to be created between Lagos State and the Federal Government (Following the election proceedings). The Ogun State project covers a greater distance than the Lagos Blue Line, but it should be noted that there are other projects within the Lagos State Mass Transit Scheme (Refer to this link). The Ogun State Standard Gauge Intra State railway, with a 334 Kilometre track is thus more comparable to the Abuja Mass Transit (280 km). The Ogun State railway project is additionally expected to become one of the fastest rail systems in the country, with top speeds of 120 km/hr. Only the Lagos - Kano high speed route will be faster (Note - the Abuja - Kaduna and Lagos - Ibadan routes are segments of the Lagos - Kano line).
Specifications
So what are the specifications? We are looking at 15 Stations, so the stops will be quite some distance between each other. The contractor should naturally be CCECC of China and the contractual amount is a whopping $3.5 Billion. Therefore this is the second most expensive rail project in the Nigerian Pipeline (although the total cost for the Abuja Railway is not yet disclosed). The colossal Coastal Railway project which will span from Lagos - Cross River State, will of course be the most expensive at $12 Billion.
Opportunities
With the execution of this project, we can expect the machinery, locomotives, electrical and mechanical components to contribute $500 Million worth of Chinese export content, which is good for the Chinese Investors as key stakeholders. However the promise for the Nigerian economy, lies in the fulfillment of an effective transport corridor. Another key benefit is that 6,000 direct jobs and 20,000 indirect jobs for Nigerians, will be created during the construction phase and 7,000 permanent jobs thereafter.
Written by T.Adeniyi for BBB