Indian Railways may enter Nigeria

Nigeria has invited Indian Railways to operate one of its railway zones without participating in a competitive bidding process. In its first major initiative for modernising its network, Nigeria has called for bids from across the globe for three of its zones.

But, a Nigerian delegation, led by its Transport Minister Abiye Sekibo, in its meeting with Rites last week, put a condition that India would not bid for the other two zones, ministry officials told Business Standard.

Nigerian Railway Minister W K Mohammed was also present for discussions.

Nigeria's 3,505 route kilometre railway network is divided into three zones - western, eastern and central. It had recently announced tenders for contracts for operation for a period of 25 years for each of these zones.

At present, the Nigerian rail network is under the public sector. Officials added that India may be allowed to take its pick from all the three zones.

"The other option with Rites is to bid for all three zones and compete with global players to get even one contract," an official source said. He added that Railways had not taken any decision as yet, as the proposal had come just last week.

Rites has already submitted expressions of interests for all three zones two months back. Sources added that Rites had been qualified to submit financial bids for all three contracts but was waiting for an official intimation.

The contract involves investment on rehabilitation of the Nigerian network and rolling stock. The operator, however, would be given the freedom to set tariffs. Nigeria has also appointed a Canadian firm as a transaction advisor for the three contracts.

Rites is not new to the Nigerian railway system. It had managed the country's railway network for three years during 1979-1982 when it had deputed 300 experts on the site. It was during this period that the Nigerian railway turned into black and started earning profits, officials said.

Elaborating on the routes, which would be given on contract for operation, officials said the concession for the western zone was for Lagos-Nguru route, including all branch lines.

The contract for the eastern zone involved modernisation of the lucrative Port Harcourt-Maiduguri line, including Kaduna-Kafanchan link and branch lines. Officials added that the central zone concession was for Itakpe-Ajaokuta-Warri route.