FG inaugurates rail wagon plant in Ogun

The Federal Government on Saturday in Kajola, Ogun State kicked off the construction of a wagon assembly plant for the railway system in the country as a means of localising rail technology, an effort likely to create 5000 jobs when fully operational.

Speaking at the ground-breaking ceremony, Vice President Yemi Osibanjo stated that rail system of transportation ”holds the master key to transforming commerce in Nigeria and across the continent by linking our ports to rail lines.”

According to Professor Osinbajo, “When completed, it is expected that the plant would not only produce some parts of the wagons for the Lagos – Ibadan and Abuja – Kaduna rail lines, but also for the central rail lines and to satisfy the needs of other rail operators within the West- African sub-region.

“Siting of the plant here in Nigeria and the commitment to hiring Nigerians and Nigerian businesses affirms the president’s directive in Executive Order 5 on prioritising Nigerians and Nigerian businesses in the innovation, production and procurement of engineering projects and services. The plant would offer an important platform for engineers, technicians, artisans and other professionals to gain the specialised skills required for the production and maintenance of rolling stocks.

“This will invariably conduce to spin-off businesses in the region and across the country wherever rail networks are in existence. The plant is expected to generate about 5,000 direct and indirect jobs.”

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He explained further that “after completing the Abuja – Kaduna Railway project in July 2016, this administration commenced construction works on the Lagos – Ibadan Railway modernisation project in March 2017, following which we initiated the rehabilitation and completion of the abandoned Itakpe – Ajaokuta – Warri rail line which was started over three decades ago.

“This rail line will link into the new Warri seaport being constructed under the agreement.

While speaking, Minister of Transportation, Rotimi Amaechi said that the Kajola Wagon Assembly plant will save the country millions of foreign exchange earnings when fully operational.

He noted that: “This segment holds the key to the development of the economy of the nation from the commercial city of Lagos to the commercial hub of Northern Nigeria, Kano. It was in the pursuit of these objectives that the Federal Ministry of Transportation signed an agreement with Messrs CCECC Nig. Limited in March 2018 to establish this plant for the production and assembling of rolling stocks, spare parts and maintenance equipment in Nigeria.”

In an interview, Governor Dapo Abiodun commended the rail and wagon plant initiative, saying that his government would take advantage of the assembly plant by investing on small lines that would latch on the project, invest on train stops, industrial hub and residential estates to allow people to come and live and invest in the state.

Chinese Ambassador to Nigeria, represented by the Economic Attache at the Chinese Embassy, Mr Li Yuan, noted that Nigeria and China relationship in the past 43 years has yielded mutual benefits for both countries, adding that the assembly plant was Chinese efforts at assisting Nigeria to develop her railway system.