Nigeria’s ambitious initiative to expand its cargo handling capacity through the establishment of seven Inland Dry Ports (IDPs) has hit the rocks, with significant delays, high cost and security challenges threatening to undermine the potential benefits of these facilities, investigation by Shipping Position Daily has revealed.
Despite plans for these IDPs to accommodate 165,000 Twenty-Foot Equivalent Units (TEUs) across various states, only three of the approved inland ports have been completed, and all continue to struggle with meeting their operational obligations.
The IDPs, also known as Inland Container Depots (ICDs), are designed to serve as off-dock facilities that would ease congestion at seaports and facilitate the movement of goods to the country’s hinterland. However, recent data reveal that progress on these projects has been slow and uneven, raising concerns about their ability to meet the nation’s logistical needs.
Shipping Position Daily recalls the Nigerian Shippers’ Council (NSC) had recently signed a Memorandum of Understanding with the Nigerian Railway Corporation (NRC) to facilitate the movement of goods to and address the challenges hindering the effective rail transportation of goods from seaports to the IDPs.
The Managing Director of the NRC, Fidet Okhiria, said it is cost-effective to use the railway to move cargo, compared to the road as moving a container from Lagos to Kano costs N1.2 million by rail and as much as N1.5 million by road. He said a standard gauge train can take 35 trailers off the road by moving 35 containers at a go and that the number can be doubled to 70 containers.
According to data obtained from the official website of the NSC, seven locations across Nigeria were approved for the establishment of IDPs. These facilities were concessioned to private sector operators with the expectation that they would enhance the country’s cargo handling capacity, especially in regions far from the coast.
Out of the seven approved IDPs, only three have been fully completed, which include: Kaduna Inland Dry Port, which has a relatively smaller capacity of 5,000 TEUs, Dala Inland Dry Port in Zawachiki, Kano State with 20,000 TEUs and the Zanfarawa port in Funtua, Katsina State with 10,000 TEUs.
However, other yet-to-be-completed IDPs are: Erunmu Inland Dry Port in Ibadan, Oyo State (10% completed), Isiala Ngwa facility in Abia State (5% completion), Heipang port in Jos, Plateau State (48.40%) and the Jauri Inland Dry Port in Maiduguri which is has only reached 5% completion.
Data obtained by our correspondent also show that there have been additional proposals from the private sector to establish new IDPs in locations such as Dagbolu in Osun State, Lolo in Kebbi State, Onitsha in Anambra State, and Ogwashi-Uku in Delta State.
Speaking with the General Manager of the Kaduna Inland Dry Port (KIDP), Mr. Rasaki Salami, he informed that KIDP has successfully moved above 400 to 500 TEUs of cargo from Lagos and Port Harcourt since the beginning of the year.
Salami detailed the extensive facilities available at the port, including a terminal with the capacity to accommodate up to 5,000 containers at once, a 4,000 square meter warehouse for exports and storage, trailer parks, cold rooms, and laboratories. He said these infrastructures position the KIDP as a critical hub for both import and export activities in the region.
However, the General 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 shippers 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. Salami expressed optimism that the use of rail to connect northern dry ports, including Kaduna, Dala, and Funtua, to the Apapa seaport in Lagos would commence next month.
“We have little challenges about transportation. Most of the dry ports around the globe use rail to move the cargo. The Executive Secretary of the NSC during his recent visit promised to work on it to ensure the narrow gauge move cargo to the north. They will bring in import and take exports from the north. This will go a long way to reduce the cost, he said.
He said further that: “The MoU between Nigerian Shippers’ Council and the Nigerian Railway Corporation is still a work-in-progress. But I think the essence of all this thing is just to ensure that all the northern dry ports are connected by rail. All the three functional dry ports are all narrow-gauge rail track.
“Currently, we are connected to the seaports. The inland dry ports in Kaduna, Dala and Funtua, you can move your cargo directly from that place down to the Apapa sea port. From next month, I believe we will commence the movement of the cargo by rail”. Salami added.
On his part, the Managing Director of Dala Inland Dry Port (DIDP) Dr. Ahmed Rabiu noted that the port since its gazettement and commissioning as an international port of origin and destination, has successfully processed approximately 300 containers, both for export and import, during its first year.
Rabiu said this includes about 200 export containers, which have benefited from a streamlined process where their journey commenced directly from the DIDP without delays or additional inspections at the seaport. He added that the port has also facilitated the movement of around 100 containers utilizing the railway system, although limited rail services have posed a challenge.
Speaking further, Rabiu stressed that one of the primary challenges has been the reluctance of shipping lines to issue Through Bill of Lading to the inland port, forcing DIDP to operate more like a bonded terminal rather than a fully-fledged international port.
According to him, this has limited the port’s ability to operate at full capacity and has necessitated the involvement of multiple stakeholders, including the Ministry of Marine and Blue Economy and the Nigerian Shippers’ Council, to resolve the situation.
A Through Bill of Lading is a document that allows a shipping company to move goods from the point of origin to the final destination.
The DIDP Chief Executive also pointed out the critical role of rail transport in the port’s operations. He stated that currently, rail services are limited to three trips per week, each capable of carrying around 40 containers. With a projected increase in volume by September and October, Dr. Rabiu stressed the need for more frequent rail services to meet the growing demand.
He said the security concerns, particularly the threat of bandit attacks on rail tracks, have also posed challenges. He expressed optimism that efforts by the NSC, NRC and the Ministry of Transportation to secure these tracks are ongoing, with hopes that these measures will further enhance the port’s efficiency.
He called for stronger policy support, possibly through new legislation or an executive order, to address the current challenges and fully realize the objectives for which the inland port was established.
He told our correspondents that: “We have been able to process just about 200 export containers and 100 containers for use of the railway. Our investment in this facility is significant, but we need more support from rail services to meet the growing demand. Bandits have been a significant issue, removing rail components and causing delays.
“This limitation constrains us from operating at full capacity and has necessitated the involvement of multiple stakeholders, including the Ministry of Marine and Blue Economy and the Nigerian Shippers’ Council, to resolve the situation.
“The Dala Inland Dry Port is poised to play a crucial role in improving the ease of doing business in Nigeria, reducing congestion at seaports, and making our exports more competitive on the global stage. With the right support and coordination, we are confident that the port will fulfill its promise and contribute significantly to the Nigerian economy.” Dr Rabiu assured.
However, industry experts who spoke to our correspondent last week pointed to several challenges, including inadequate infrastructure, delays in funding, and bureaucratic bottlenecks. Additionally, issues such as security concerns in certain regions and the lack of rail-to-seaport connectivity have, according to them, further impeded the progress of these projects.
In a chat with the National Secretary of the Association of Registered Freight Forwarders of Nigeria (AREFFN), Mr Frank Obiekezie lauded the proposal for establishing inland dry ports in Nigeria as a noble initiative aimed at bolstering economic activities in the country’s interior regions. However, he raised concerns about the implementation challenges that have historically plagued such projects.
Obiekezie also highlighted the lack of adequate rail connections, which are crucial for the effective operation of inland dry ports. He cited instances where rail operators imposed steep fees, further complicating the logistics and increasing costs for businesses.
The AREFFN scribe urged the NSC to ensure that all logistical challenges are addressed before the new dry port becomes operational, adding that successful inland dry ports could significantly reduce congestion at seaports by facilitating the immediate movement of containers to inland destinations.
