Nigerian Vice President, Yemi Osinbajo, has inaugurated the construction of a rolling stock assembly plant in Kajola, Ogun state, in southwestern Nigeria.
When completed, the plant will have a capacity of 500 wagons per year, manufacturing open, container, flat and tank cars which will enter services on the standard-gauge railway network.
The plant is a private investment undertaken by China Civil Engineering Construction Corporation (CCECC), under the agreement with Nigerian government. “It is central in the production of rolling stock spare parts and maintenance equipment needed for the railway modernization programme being implemented by Presidential Administration,” Yemi Osinbajo, Nigeria’s Vice President, said.
While the raw and auxiliary materials of the plant are manufactured in China, the processes such as welding, assembly, painting, drying and testing will be done in Nigeria.
The new plant will generate about 5,000 of direct and indirect jobs, Rotimi Amaechi, the Minister of Transport, said.
The new plant will produce wagons for the Lagos – Ibadan and Abuja – Kaduna rail lines, but also for the central rail lines. In addition, it will supply the needed rolling stock for other railway operators in the West-African sub-region.
In October, Nigeria signed with China Railway Construction Company the contract for the construction of the Itakpe – Ajaokuta rail line which will be extended from Itakpe to Abuja through Baro Inland Water Port in Niger State with a branch line to Lokoja in Kogi State.
In addition, Nigeria is rehabilitating the Itakpe – Ajaokuta – Warri line and is carrying out the modernisation of the Lagos – Ibadan railway line. Last month, the government has approved the USD 5.3 billion for the Ibadan – Kano standard gauge rail line, providing north-south transport link.