China Civil Engineering Construction to build high-speed Nigerian railway

NIGERIA has signed a contract with China Civil Engineering Construction Corporation (CCECC) to build a US$1.4 billion railway linking its main coastal city of Lagos to its major northern metropolis of Ibadan.

The standard gauge double rail track is to run 160 kilometres and takes 36 months to build. It will allow for trains to travel at 150 kilometres per hour.

The modernisation project will provide a chance to improve the country's economic and social development and cause a "drastic reduction in poverty in the country", said Transport Minister Idris Umar.

The rail project, managed by CCECC Nigeria, will be partly financed by China Exim Bank in a concessionary loan facility of $1 billion, of which $500 million is under negotiation, and at least $500 million through funding from the Nigerian government.

The project will provide a chance to improve the country's economic and social development and cause a "drastic reduction in poverty in the country", said Senator Umar, reported London's Containerisation International.

The government's support is boosted by a turnaround in its port systems through private concessions which has transformed productivity and congestion problems.