The recent appointment of a new Managing Director to run to the Nigeria Railways Corporation (NRC) is a welcome development. And perhaps, it couldn’t have come at a better time. The new helmsman Adeseyi Sijuade until his appointment was the client Project Director of the Lagos-Kano Railway modernisation project. He is a chartered civil engineer and holds a MBA degree from Loughborough University.
Mr Sijuade is coming into the NRC at a time when the nation’s railway is in state of comatose. It is suffice to say that he already has his work cut out. He expected to run a government agency – like many others - that has virtually collapsed due to corruption, mismanagement and ineptitude. He is also expected to lead a workforce with low skill base and weakened staff morale. Having said that, it is critical for him to make known his vision and aspiration for the NRC as soon as possible. Various stakeholders in the transport industry will want to know Mr Sijuade’s position on key issues currently affecting the railway industry, especially with the Railways Act Bill
The NRC MD was quoted in the media to have said he will make the rebranding of the corporation a priority. He noted the need to change public perception of the corporation for better. But really, what product does the NRC have to offer that it wants to rebrand? Is it the decrepit rail locomotives lying on the rail tracks across the country? Or is it the dilapidated NRC properties across the nation? Or may be it is the retired staff who have not receive their pension payments in years? There is no doubt that the public perception about the NRC is terribly bad. And this is primarily due to failure of NRC to deliver its primary product.
But will the appointment of Mr Sijuade bring about positive change in the nation’s railway sector? I do hope and pray so! But more importantly, the role of NRC in the planned future privatisation/concessioning of the nation’s railway needs to be resolved as a matter of priority. Up until now, neither the Minister for Transport or Mr Sijuade has been able to clearly articulate the institutional framework that will govern the proposed concessioning/privatisation. The proposed Railways Act Bill - which is aimed at sorting out some of the complexities in the railway sector – only offers very little.
For instance, we heard the newly appointed MD saying the decision to concession the operations of NRC did not translate into its sale. One can assume from the statement that only the rail operations arm of NRC will be concessioned to the private sector. So the questions are, will the ‘rail operation’ arm of NRC operate as a private company? How will such a company fit into the overall NRC model? Why does the government not consider selling off the entire “operational function” of the NRC to the private sector? What is the obsession of NRC with rail operations? Why not allow the private sector to operate railways and leave NRC as an umpire?
Ultimately, it is up to the government to decide what role the NRC will play in the post privatisation era. For me, it either has to be an operator - competing with other private operators – or just a rail regulator. It is unacceptable for an agency to perform the dual role of service provider and regulator. If the NRC is keen to remain a rail service provider, then it is only sensible that the rail regulator should be an independent body. It should be a statutory board operationally independent of government. If the NRC continues to provide rail services and also responsible for regulating other concessionaires, the question then is who will “regulate” the regulator? Although, the government is keen for private sector participation in the railway sector, it is clear that it doesn’t know what to do with NRC.
These are some of the key challenges Mr Sijuade will have to grapple with as he settles into his job. Some consider him as an outsider, who lacks the political clout required to turn things around. Given the necessary support by the Federal Government, I have every hope that Mr Sijuade will succeed. And I wish him best of luck!
Showing posts with label Lagos-Kano Rail. Show all posts
Showing posts with label Lagos-Kano Rail. Show all posts
Tuesday, August 18, 2009
Sunday, April 12, 2009
Letter to President Umaru Yar'Adua
Your Excellency,
I hope this letter finds you in good health.
Firstly, I will like to commiserate with you on the exclusion of Nigeria from the last G20 meeting. I am happy that you expressed your disappointment at the exclusion of a country of 140 million people and sixth largest producer of the world’s ‘most sought after’ commodity, from such an important gathering. However, let me be quick to point out that, the greatness of a nation is not just dependent on its population size or mineral resources, and neither is it dependent on cosmetic re-branding programme.
Your Excellency, you will agree with me that it’s been almost two years since your assumption of office. While there has been no tangible developmental progress been made by your administration, it is unfortunate that we are now beginning to talk about your ‘second term’ in office.
Sir, I agree that as a Nigerian citizen, you have the right seek a second term in office. I also acknowledge that you have not come openly to confirm or deny the current media speculations. However some of your closest aides have made it a point of duty to start the 2011 Presidential campaign on your behalf. But before you make a decision, there is an important question you need to ask yourself. Do I really understand the complexity of challenges facing the country?
Sir, following my review of your first two years in office, I am convinced beyond every doubt that you do not understand the challenges of your office. Just as the Americans will say. “You just don’t get it”. And if you can’t get it in two years, what makes us think you will in eight years.
I remember all the rhetoric about ‘rule of law’, vision 2020, seven-point agenda when you came into office. The only thing this administration has been successful at doing is reversing all policies of the previous administration. Your government has been stuck in reverse gear for the past two years. You spent seven months to re-constitute your cabinet, within which there was approximately three months of inaction in government ministries, department and agencies. Two years on, your administration is still ‘fart-assing’ around with the Lagos-Kano rail modernisation project. You still don’t have a blue-print for energy sector, the refineries are still not working, you are still talking about highway concessions. How many years of planning do you actually need?
It was interesting to read the comments of one of your closest aides, that the seven-point agenda has been designed to be implemented in eight years. And that you need two years of planning, and six years of implementation, hence the need for a second term. Haba!
If indeed you need two years of planning, then I want to believe that you were never ‘ready’ for the position you currently occupy. And in your case, I want to blame the wicked and callous farmer from Otta, who saddled you with this responsibility. Nobody can be forced into the office of a President, especially in a complex nation like Nigeria. Serious presidential candidates have plans and programmes before they assume office. They undertake series of research into the workings of the government during their campaign. They identify where they can make ‘quick wins’. They develop of list of programmes they will implement in their first 100 days in office. They set targets and benchmark for measuring their success in office. I’m not saying a presidential candidate should be a ‘jack of all trade’, but that is why they appoint intelligent advisers, who x-ray each government departments and help develop policies.
Some of the decisions you have made recently, has highlighted the handicap that exists in your administration. There is an ‘information gap’ within the current government. Mr President, for me, it seems that you lack information on key challenges you are trying to solve. As an example, you announced that you intend generate 6,000MW of electricity before the end of 2009. However, you have failed to tell us how this will be done. You shouldn’t be telling us this after two years in office. An informed President comes into office with mapped out strategy. If President Obama is to spend two years to study America’s problems, then the whole of the US will be sleeping on the streets before then. Nigeria needs a President that will hit the ground running. The challenges facing Nigeria does not require a President that will learn on the job. For goodness sake, been the Governor of Katsina for eight years does not make you an informed person. I’m sorry to say, your actions recently has shown an utter display of ignorance.
I also want to query your judgment in the recent sacking of NNPC Directors. I’m not sure if you read the recent article of Dr Patrick Dele Cole in Guardian Newspaper 6 April 2009 and 7 April 2009. This was the most shocking indictment of the NNPC I have read in my life. I found it interesting that the NNPC Directors were sacked the day after the articles were published. While the nation is dire need of such actions, I can’t seem to understand why the sacked Directors were quickly replaced by their subordinates. These are the same people that have failed to bring any integrity and accountability into the NNPC. Mr President, we need a change from the status quo. Institutions such as the NNPC, NRC are not ‘fit for purpose’, and are in need of thorough cleansing.
I do hope you will take these issues very seriously. While you have a right to seek a second term, it is not a birthright. I understand the enormous power at the disposal of the incumbent in Nigerian politics. The Nigerian Presidency demands more than a ‘good man’. We do not want to be held hostage for another six years of your administration.
Long live Federal Republic of Nigeria.
I hope this letter finds you in good health.
Firstly, I will like to commiserate with you on the exclusion of Nigeria from the last G20 meeting. I am happy that you expressed your disappointment at the exclusion of a country of 140 million people and sixth largest producer of the world’s ‘most sought after’ commodity, from such an important gathering. However, let me be quick to point out that, the greatness of a nation is not just dependent on its population size or mineral resources, and neither is it dependent on cosmetic re-branding programme.
Your Excellency, you will agree with me that it’s been almost two years since your assumption of office. While there has been no tangible developmental progress been made by your administration, it is unfortunate that we are now beginning to talk about your ‘second term’ in office.
Sir, I agree that as a Nigerian citizen, you have the right seek a second term in office. I also acknowledge that you have not come openly to confirm or deny the current media speculations. However some of your closest aides have made it a point of duty to start the 2011 Presidential campaign on your behalf. But before you make a decision, there is an important question you need to ask yourself. Do I really understand the complexity of challenges facing the country?
Sir, following my review of your first two years in office, I am convinced beyond every doubt that you do not understand the challenges of your office. Just as the Americans will say. “You just don’t get it”. And if you can’t get it in two years, what makes us think you will in eight years.
I remember all the rhetoric about ‘rule of law’, vision 2020, seven-point agenda when you came into office. The only thing this administration has been successful at doing is reversing all policies of the previous administration. Your government has been stuck in reverse gear for the past two years. You spent seven months to re-constitute your cabinet, within which there was approximately three months of inaction in government ministries, department and agencies. Two years on, your administration is still ‘fart-assing’ around with the Lagos-Kano rail modernisation project. You still don’t have a blue-print for energy sector, the refineries are still not working, you are still talking about highway concessions. How many years of planning do you actually need?
It was interesting to read the comments of one of your closest aides, that the seven-point agenda has been designed to be implemented in eight years. And that you need two years of planning, and six years of implementation, hence the need for a second term. Haba!
If indeed you need two years of planning, then I want to believe that you were never ‘ready’ for the position you currently occupy. And in your case, I want to blame the wicked and callous farmer from Otta, who saddled you with this responsibility. Nobody can be forced into the office of a President, especially in a complex nation like Nigeria. Serious presidential candidates have plans and programmes before they assume office. They undertake series of research into the workings of the government during their campaign. They identify where they can make ‘quick wins’. They develop of list of programmes they will implement in their first 100 days in office. They set targets and benchmark for measuring their success in office. I’m not saying a presidential candidate should be a ‘jack of all trade’, but that is why they appoint intelligent advisers, who x-ray each government departments and help develop policies.
Some of the decisions you have made recently, has highlighted the handicap that exists in your administration. There is an ‘information gap’ within the current government. Mr President, for me, it seems that you lack information on key challenges you are trying to solve. As an example, you announced that you intend generate 6,000MW of electricity before the end of 2009. However, you have failed to tell us how this will be done. You shouldn’t be telling us this after two years in office. An informed President comes into office with mapped out strategy. If President Obama is to spend two years to study America’s problems, then the whole of the US will be sleeping on the streets before then. Nigeria needs a President that will hit the ground running. The challenges facing Nigeria does not require a President that will learn on the job. For goodness sake, been the Governor of Katsina for eight years does not make you an informed person. I’m sorry to say, your actions recently has shown an utter display of ignorance.
I also want to query your judgment in the recent sacking of NNPC Directors. I’m not sure if you read the recent article of Dr Patrick Dele Cole in Guardian Newspaper 6 April 2009 and 7 April 2009. This was the most shocking indictment of the NNPC I have read in my life. I found it interesting that the NNPC Directors were sacked the day after the articles were published. While the nation is dire need of such actions, I can’t seem to understand why the sacked Directors were quickly replaced by their subordinates. These are the same people that have failed to bring any integrity and accountability into the NNPC. Mr President, we need a change from the status quo. Institutions such as the NNPC, NRC are not ‘fit for purpose’, and are in need of thorough cleansing.
I do hope you will take these issues very seriously. While you have a right to seek a second term, it is not a birthright. I understand the enormous power at the disposal of the incumbent in Nigerian politics. The Nigerian Presidency demands more than a ‘good man’. We do not want to be held hostage for another six years of your administration.
Long live Federal Republic of Nigeria.
Monday, December 29, 2008
Lagos-Kano Rail Modernisation Project
The Federal Government recently suspended the proposed $8.3 billion Lagos to Kano railway modernisation project awarded to the China Civil Engineering Construction Corporation (CCECC) by the administration of former President Olusegun Obasanjo. This decision – one of many ‘reversals’ of Yar’Adua government – is seen as regrettable by the punter, however it might be a blessing in disguise as it offers an opportunity for a rethink. I’m however not under any illusion about why the project was cancelled.
Mr. Tanimu Yakubu, chief economic adviser to President Umaru Yar'Adua, told the committee probing the $8.3 billion proposed Lagos-Kano standard gauge rail line that the Chinese firm was in contravention of Section 54 of the Companies and Allied Matters Act (Cama), which prohibits foreign companies from doing business in the country without being legally registered in Nigeria. He said the President Yar'Adua-led administration considers the contract to be illegal because it was not presented to the National Assembly for ratification. While the official status of the project is yet to be disclosed, the status of the contract however needs to be clarified because the body language of Yakubu indicates that the contract is as good as dead.
My concern with the project has nothing to do with budget appropriation or registration of CCECC with the Corporate Affairs Commission (CAC). I consider the basis, need and justification for such a huge financial investment in upgrading a rail line between Lagos-Kano to be fundamentally flawed for various reasons.
Firstly, why do we have to procure rail engineering expertise from China? There is a fundamental difference between ‘human resources’ and ‘human capacity’. With its population size, there is no doubt in my mind that the Chinese have the resources to undertake any project (as seen in recently concluded Olympics). However, I’m not convinced that they have the capacity (in terms of skills) to design a ‘world class’ rail system. When you mention rail projects, we are not just talking about construction workers, but technical expertise in terms of planning, design and engineering. It is worth noting that the planning, design and engineering expertise for the recently constructed Beijing-Tianjing Intercity Rail was sourced from mainland Europe. Only contracts for civil construction and engineering supervision were limited to local Chinese firms. That says a lot about how much faith the Chinese have in its own expertise. I don’t think Nigerians are interested in ‘Made in China’ railways, or train parts from ‘Chinatown’.
Secondly, why spend such a huge amount of money on upgrading an existing rail line – converting narrow gauge track to standard gauge?
The Lagos-Kano rail line stretches to 11,315 kilometres and would run on double track. The speed limit will be pegged at 150 kilometres per hour. After the upgrade, it would take less than four hours to travel from Lagos to Kano. The project will also include construction of 39 stations and two workshops and would be run through independent power supply system. The Chinese also offered a five-year maintenance period. The entire project would cost $8.3 billion. Even though the Federal Government only paid the Chinese company a paltry sum of $250 million being three per cent of the entire total cost, instead of $1.356 billion, being the 10 per cent mobilisation fee promised, the company immediately moved to site, armed with the due process certificate for the payment made.
While this might look good on paper, the question needs to be asked about how many people will be travelling daily between Lagos-Kano to justify this investment. With a travel time of four hours, are we constructing a commuter or tourist rail network? For me, the rail line will only be useful for long distance travel. This in itself raises more questions than answers. How many people travel daily on this route? How many times a day is it expected to operate? Has there been any cost-benefit analysis undertaken for the project? I’m sure that if a cost-benefit analysis is undertaken, the numbers will definitely not stack up. Does the time savings to be achieved by converting narrow gauge to standard gauge worth $8.3 billion dollars in real terms?While I’m not totally against upgrading Nigerian railway infrastructure, I’m of the opinion that $8 billion earmarked for this project can be better spent. For starters, let me point out that there is nothing wrong with ‘narrow gauge’ rail tracks. While standard gauge is modern and used in most parts of the world, there are still many developed nations with narrow gauge rail tracks. While it might be better to build new rail tracks as standard gauge, the conversion cost is too expensive for most countries, hence the reason why it is still widely in use.
The Federal Ministry of Transport should be setting a strategic policy for rail development in the country, starting with a cleansing of the Nigerian Railway Corporation. Railway transport in Nigeria is inefficient and has hardly developed at all over the past 100 years compared to railways in the developed world. This is due both to maladministration by successive governments and to the lack of a functional transport policy ensuring a constant pattern of railway development.
In developed countries, transport policy is dynamic and changes responsively accordingly to technological trends in the transport sector. Efforts should be focussed on developing rail network in sub-regional areas. There is likely to be more patronage demand along Lagos-Ogun-Oyo, PH-Warri-Enugu and Minna-Kaduna-Abuja corridors. The Lagos Rail Mass Transit project should be supported by the FG with funds and be extended to Ogun State as part of the Lagos Mega City Project. The transport infrastructure in our major cities should be fixed as a matter of priority.
Even if the FG decides to go ahead with the project as it is, who will be responsible for operation and maintenance? Is it the ‘paralysed’ Nigerian Railway Corporation? Only God knows what goes on in the NRC nowadays. The organisation has proven beyond every reasonable doubt that it is incompetent to move the nation rail system to the next level.Until the government comes out in the open to tell us its official position on the project, we can only keep asking ourselves, where to from here…, ?
Mr. Tanimu Yakubu, chief economic adviser to President Umaru Yar'Adua, told the committee probing the $8.3 billion proposed Lagos-Kano standard gauge rail line that the Chinese firm was in contravention of Section 54 of the Companies and Allied Matters Act (Cama), which prohibits foreign companies from doing business in the country without being legally registered in Nigeria. He said the President Yar'Adua-led administration considers the contract to be illegal because it was not presented to the National Assembly for ratification. While the official status of the project is yet to be disclosed, the status of the contract however needs to be clarified because the body language of Yakubu indicates that the contract is as good as dead.
My concern with the project has nothing to do with budget appropriation or registration of CCECC with the Corporate Affairs Commission (CAC). I consider the basis, need and justification for such a huge financial investment in upgrading a rail line between Lagos-Kano to be fundamentally flawed for various reasons.
Firstly, why do we have to procure rail engineering expertise from China? There is a fundamental difference between ‘human resources’ and ‘human capacity’. With its population size, there is no doubt in my mind that the Chinese have the resources to undertake any project (as seen in recently concluded Olympics). However, I’m not convinced that they have the capacity (in terms of skills) to design a ‘world class’ rail system. When you mention rail projects, we are not just talking about construction workers, but technical expertise in terms of planning, design and engineering. It is worth noting that the planning, design and engineering expertise for the recently constructed Beijing-Tianjing Intercity Rail was sourced from mainland Europe. Only contracts for civil construction and engineering supervision were limited to local Chinese firms. That says a lot about how much faith the Chinese have in its own expertise. I don’t think Nigerians are interested in ‘Made in China’ railways, or train parts from ‘Chinatown’.
Secondly, why spend such a huge amount of money on upgrading an existing rail line – converting narrow gauge track to standard gauge?
The Lagos-Kano rail line stretches to 11,315 kilometres and would run on double track. The speed limit will be pegged at 150 kilometres per hour. After the upgrade, it would take less than four hours to travel from Lagos to Kano. The project will also include construction of 39 stations and two workshops and would be run through independent power supply system. The Chinese also offered a five-year maintenance period. The entire project would cost $8.3 billion. Even though the Federal Government only paid the Chinese company a paltry sum of $250 million being three per cent of the entire total cost, instead of $1.356 billion, being the 10 per cent mobilisation fee promised, the company immediately moved to site, armed with the due process certificate for the payment made.
While this might look good on paper, the question needs to be asked about how many people will be travelling daily between Lagos-Kano to justify this investment. With a travel time of four hours, are we constructing a commuter or tourist rail network? For me, the rail line will only be useful for long distance travel. This in itself raises more questions than answers. How many people travel daily on this route? How many times a day is it expected to operate? Has there been any cost-benefit analysis undertaken for the project? I’m sure that if a cost-benefit analysis is undertaken, the numbers will definitely not stack up. Does the time savings to be achieved by converting narrow gauge to standard gauge worth $8.3 billion dollars in real terms?While I’m not totally against upgrading Nigerian railway infrastructure, I’m of the opinion that $8 billion earmarked for this project can be better spent. For starters, let me point out that there is nothing wrong with ‘narrow gauge’ rail tracks. While standard gauge is modern and used in most parts of the world, there are still many developed nations with narrow gauge rail tracks. While it might be better to build new rail tracks as standard gauge, the conversion cost is too expensive for most countries, hence the reason why it is still widely in use.
The Federal Ministry of Transport should be setting a strategic policy for rail development in the country, starting with a cleansing of the Nigerian Railway Corporation. Railway transport in Nigeria is inefficient and has hardly developed at all over the past 100 years compared to railways in the developed world. This is due both to maladministration by successive governments and to the lack of a functional transport policy ensuring a constant pattern of railway development.
In developed countries, transport policy is dynamic and changes responsively accordingly to technological trends in the transport sector. Efforts should be focussed on developing rail network in sub-regional areas. There is likely to be more patronage demand along Lagos-Ogun-Oyo, PH-Warri-Enugu and Minna-Kaduna-Abuja corridors. The Lagos Rail Mass Transit project should be supported by the FG with funds and be extended to Ogun State as part of the Lagos Mega City Project. The transport infrastructure in our major cities should be fixed as a matter of priority.
Even if the FG decides to go ahead with the project as it is, who will be responsible for operation and maintenance? Is it the ‘paralysed’ Nigerian Railway Corporation? Only God knows what goes on in the NRC nowadays. The organisation has proven beyond every reasonable doubt that it is incompetent to move the nation rail system to the next level.Until the government comes out in the open to tell us its official position on the project, we can only keep asking ourselves, where to from here…, ?
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