Investigations by Shipping Position Daily have revealed that the operations of Kaduna, Dala and Funtua Inland Dry Ports, that have been designated as ports of origin and destination have continue to face significant challenges due to the absence of rail connectivity.
This is even as industry experts have raised concerns about how this deficit hampers the viability of these facilities and undermines their intended purposes.
The Kaduna Inland Dry Port, inaugurated in 2018 by President Muhammadu Buhari, holds the distinction of being Nigeria’s first inland dry port. Its establishment followed approval by the Federal Government in 2014 as part of efforts to alleviate congestion at Lagos seaports.
In 2023, the Dala Inland Dry Port, located in Zawachiki, Kano State, was completed. The port’s development began with its concessioning in 2003, followed by the signing of the concession agreement in 2006.
Additionally, in February 2023, the Funtua Inland Dry Port was officially declared a port of origin and destination by the Federal Government. This status allows importers and exporters to seamlessly transport cargo from Funtua to any part of the world.
However, despite the recent designation of these inland cargo facilities often referred to as Inland Container Depots (ICDs), as ports of origin and destination, their operations remain hampered by lack of effective rail connectivity.
Findings by our correspondent have revealed that these inland dry ports particularly the Kaduna Inland Dry Port is currently facing disruptions in its operations of moving cargo by rail as the Nigeria Railway Corporation (NRC) is still working to resolve the technical issues along the Niger corridor stalling rail connectivity to the port.
In an exclusive chat last week with the Managing Director of the Kaduna Inland Dry Port, Mr. Rasaki Salami, he disclosed that rail operations to the facility are temporarily hindered due to technical issues along the Niger axis.
Despite these setbacks, Mr Salami informed that the port achieved notable success in 2023, moving 5,000 Twenty-foot Equivalent Units (TEUs) of cargo from Lagos and Eastern ports.
However, the Port Manager pointed out that transportation remains a significant challenge, particularly the reliance on road transport for moving cargo emphasizing the need for a more efficient rail system to reduce costs.
Giving details, Salami noted that exporters currently spend up to ₦2 million to transport goods from Lagos to Kaduna adding that the introduction of rail transport could potentially cut these costs by 50 percent.
While disclosing that Nigeria Railway Corporation is working to resolve the technical issues, which have disrupted rail connectivity to the port, he emphasized that the resumption of rail operations is critical to improving efficiency and reducing the cost of cargo transportation
“The Kaduna Inland Dry Port is already connected with rail. The only issue is that the Nigeria Railway Corporation said they have a technical issue along the Niger state axis. Once they resolve the issue in that area, rail operations to Kaduna will automatically resume,” he explained.
On his part, Director-General of the African Centre for Supply Chain, Dr. Obiora Madu described the lack of infrastructure as a critical issue stifling business operation in Nigeria. He further noted that Nigeria’s logistics shortcomings were evident in the country’s low ranking in the 2023 World Bank Logistics Performance Index (LPI), where it placed 114 out of 139 countries.
Madu attributed Nigeria’s poor performance to inadequate port accessibility, sub-par logistics infrastructure, and delays in entry and exit processes. Despite these challenges, He acknowledged some progress in the quality of logistics services, which he credited to years of training and capacity building within the sector.
However, Madu stressed that the lack of functioning rail systems exacerbates the situation, placing undue strain on Nigeria’s road network. He also criticized the government’s slow pace in addressing infrastructure gaps, particularly in rail connectivity to the inland dry ports.
“If the rails were operational, a significant portion of freight traffic would move off the roads, prolonging the lifespan of the infrastructure and reducing costs. We often hear about rail projects like Lagos-Calabar or others on television and radio, but their implementation remains unclear. The government needs to commit more resources to logistics infrastructure, so businesses can thrive,” he urged.
“The deficit in logistics infrastructure is one of the biggest challenges facing the Nigerian economy today, and addressing it is essential for the country to achieve meaningful progress,” Madu concluded.
Also speaking, Chief Executive Officer for Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf emphasized the importance of rail infrastructure in making inland dry ports successful pointing out that the absence of rail infrastructure was a major oversight in the planning and development of dry ports.
Muda stressed that establishing rail infrastructure before setting up dry ports would have been the ideal sequence. However, with several dry ports already in operation, he called on the government to prioritize investments in rail connectivity to support existing facilities.
The CPPE Boss emphasized that robust rail systems would help decongest overstretched seaports like those in Lagos and create a seamless logistics network.
“Without a good rail connection, you cannot have an effective dry port. For these facilities to thrive there must be direct rail links to the seaports. Ideally, rail links should have been established before setting up the ports. Now that the ports exist, the government must prioritize accelerating rail connectivity to ensure their viability,” Muda said.
