General Electric pulls Out Of Nigeria Rail Concession, Pundits Say In-house Engineers Can Run It
The Oasis Reporters
November 16, 2018
According to a procurement process adviser who told Reuters on Wednesday that General Electric Co (GE.N) has pulled out of a long-term concession deal with the Nigerian government to maintain and operate narrow-gauge rail lines in the West African country, railway insiders insist thatthe Nigerian railways has personnel, both within it’s service and many more retired who can maintain the railways far better than the foreign firms if the right attitude, motivation, leadership and incentives are given, coupled with the workshop that has all the tools, equipment and foundries to keep it going.
The Nigerian railway concession project was worth around $2 billion for two lines connecting northern cities to others in the south.
The government had been due to enter into negotiations last year with GE over a railway project, although Nigeria’s upper house of parliament had said it would probe the railway concession over possible violations by Nigerian officials.
It was not clear why GE pulled out of the concession. The company was not immediately available for comment.
A consortium led by GE had submitted the only bid for the project in partnership with Transnet CGETR.UL of South Africa, Dutch-based APM Terminals and China’s Sinohydro Consortium.
Fola Fagbule, senior vice president and head of advisory at Africa Finance Corporation (AFC), which ran the procurement process after being appointed lead adviser by the government, said Transnet was in discussion to replace GE.
Economic growth in Africa’s most populous nation has been hampered for decades by its dilapidated rail network, built mainly by British colonial rulers before independence in 1960.
The concession was meant to cover about 3,500 km (2,200 miles) of existing narrow-gauge lines from the southwestern commercial capital, Lagos, to Kano in the north and from southeastern oil hub Port Harcourt to Maiduguri in the northeast.
Nigeria produces thousands of engineering graduates from it’s polytechnics and universities who can be trained to do the work that has always been given out in concessions to foreign firms from India, China, the US, etc, countries that no longer operate the narrow gauge line that Nigeria has been stuck with in 100 years, long enough to show mastery, if given the opportunity.
Additional reporting: Reuters
