Lack of rail connectivity hampers Northern inland dry ports’ cargo movement

The absence of effective rail connectivity is disrupting the operations of the Kaduna, Dala, and Funtua Inland Dry Ports (IDPs), hindering the movement of export and import cargo to and from seaports.

The Kaduna Inland Dry Port, Funtua Inland Dry Port in Katsina and Dala Inland Dry Port in Kano have been completed and designated as ports of origin and destination by the Federal Government.

However, their operations, often referred to as Inland Container Depots (ICDs), remain constrained by the lack of functional rail links.

Operators and industry stakeholders have expressed concern over how this infrastructure deficit undermines the viability and effectiveness of these dry ports.

At the Kaduna IDP, cargo movement by rail has been disrupted due to ongoing technical issues along the Niger corridor, according to the Nigeria Railway Corporation (NRC).

The Managing Director of Kaduna IDP, Rasaki Salami, confirmed that rail operations are temporarily stalled, forcing reliance on road transport, which significantly increases costs.

Salami explained that transporting goods from Lagos to Kaduna currently costs exporters up to N2 million by road, whereas rail transport could cut this cost by 50 per cent.

Despite these challenges, he highlighted the port’s achievements in 2023, moving 5,000 Twenty-foot Equivalent Units (TEUs) of cargo from Lagos and eastern ports.

He emphasised the urgent need for an efficient rail system, stating that the resumption of rail operations is critical to improving efficiency and reducing cargo transportation costs.

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, stressed the importance of rail infrastructure in the success of inland dry ports.

He described the absence of rail connectivity as a significant oversight in their planning and development.

“Establishing rail infrastructure before setting up dry ports should have been the ideal approach,” Yusuf said.

However, with dry ports already operational, he urged the government to prioritise investments in rail connectivity to support their viability and ensure seamless logistics operations.

Yusuf further argued that robust rail systems could help decongest overstretched seaports like those in Lagos and create an efficient logistics network.

He said without proper rail links, dry ports cannot operate effectively, noting that direct rail connections to seaports are essential for these facilities to thrive.

Similarly, the Director-General of the African Centre for Supply Chain, Dr. Obiora Madu, described the lack of infrastructure as a major barrier to business operations in Nigeria.

He pointed to the country’s logistics challenges, citing Nigeria’s low ranking of 114 out of 139 countries in the 2023 World Bank Logistics Performance Index (LPI).

Madu attributed this poor performance to inadequate port accessibility, substandard logistics infrastructure and delays in cargo entry and exit processes.

He noted that the absence of functional rail systems exacerbates these issues, increasing pressure on Nigeria’s road network.

“The lack of operational rail systems shifts freight traffic to already overstretched roads, shortening their lifespan and raising costs,” Madu said.

He also criticised the government’s slow pace in addressing infrastructure deficits, particularly rail connectivity to inland dry ports.