NRC, APM Terminals Relaunch Apapa-Ibadan Rail to Boost Logistics Efficiency

The Nigerian Railway Corporation (NRC) and APM Terminals Apapa have announced the relaunch of the Apapa-Ibadan standard gauge rail service for container transportation, a move set to enhance logistics efficiency and reduce dependence on road transport.

The newly revamped rail service connects the Lagos Port Complex in Apapa to the NRC Freight Yard in Moniya, Ibadan, Oyo State.

Industry experts view this initiative as a strategic step toward easing supply chain bottlenecks and lowering logistics costs in Nigeria’s growing trade sector.

Speaking at the relaunch, NRC Managing Director, Dr. Kayode Opeifa, underscored the long-standing collaboration between the NRC and APM Terminals in freight transportation.

Previously, container movement relied on the narrow-gauge rail network extending to Kaduna and Kano.

However, the transition to standard gauge rail—first initiated in September 2023—has paved the way for more seamless and reliable operations.

Dr. Opeifa further revealed that two additional rail lines are under construction at APM Terminals Apapa, increasing the total number of standard gauge lines to three.

He emphasized that the project aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, designed to improve logistics efficiency and drive economic growth.

“This relaunch represents a significant step in expanding container traffic through standard gauge rail, streamlining import and export processes, and reducing transportation costs for businesses,” Opeifa stated.

The newly launched service will operate on a structured schedule, with departures from Apapa on Mondays, Wednesdays, and Fridays.

Each trip will carry up to 35 wagons, transporting either 35 forty-foot containers or 70 twenty-foot containers.

NRC recorded the movement of 362,327 tons of containerized cargo in 2024 across both standard and narrow-gauge rail lines.

The shift toward rail transportation is expected to alleviate congestion in Apapa, enhance cargo delivery timelines, and provide a cost-effective alternative to road transport.

APM Terminals Nigeria’s Chief Commercial Officer, Caroline Aubert-Adewuyi, acknowledged previous challenges with rail cargo movement, particularly unpredictable scheduling.

She assured stakeholders that the revamped service now offers a reliable timetable to improve supply chain planning.

“In addition to a structured schedule, we have simplified the payment process, with customers now making payments directly to APM Terminals Apapa. This will streamline financial transactions and ensure smoother operations across all rail service stakeholders,” Aubert-Adewuyi explained.

APM Terminals Nigeria’s Chief Finance Officer, Courage Obadagbonyi, highlighted the company’s investment in multi-modal logistics, integrating rail, road, and barge transport to improve cargo movement efficiency.

“Our 2024 fiscal year data shows a 43% increase in export volumes over the last two years, demonstrating the impact of rail investments on trade facilitation,” Obadagbonyi stated.

READ ALSO: Nigerian Railway Corporation suspends operations over bandits’ attack

The initiative has also garnered support from regulatory agencies. Nigerian Shippers’ Council CEO, Barrister Pius Akuta, lauded the collaboration between NRC and APM Terminals, emphasizing that rail transport remains the most cost-effective and safest option for shippers.

The relaunch event saw the presence of key stakeholders, including Lagos Port Complex Apapa Port Manager Adebowale Lawal, officials from the Nigeria Customs Service, the Ports Authority Police Command, importers, exporters, and other logistics players.

With this renewed rail service, Nigeria’s logistics landscape is set for transformation, ensuring a more resilient and efficient supply chain for businesses nationwide.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.