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Nigeria's ministry of transportation reached an agreement for a joint venture on a railway restoration project in Washington on April 28, 2018.
According to the agreement, the joint venture, undertaken by Power Construction Corporation of China (POWERCHINA), General Motors, Transnet (South Africa's state-owned freight transport and logistics company) and APMT, a terminal operator of the Netherlands, will restore the western rail line of Nigeria.
Nigeria's eastern railway and western narrow-gauge rail line run through the country's north-south economic corridor for 3,457 kilometers.
A 1353-km eastern mainline railway from Harcourt Port to Gombe, a 213-km eastern extension line, a 1356-km western mainline railway from Abuja to Nguni, and a 447-km western extension line will be operated and restored under a franchise mode.
Under that mode, the rail system is expected to serve as a key path linking the main ports and all cities around Nigeria, as well as connecting the country's economic and political centers. It will effectively reduce the cost of road transportation, improve port logistics efficiency, and boost economic development in areas along the rail lines.
During the 18-month-long transition period, which is part of the franchise period, POWERCHINA will be responsible for the infrastructure restoration of some segments of the western narrow-gauge rail line. Upon completion, it will help reduce the occurrence of train derailments and safeguard the delivery of goods. Furthermore, the joint venture will offer locomotives and carriages to Nigeria's railway company.
In addition, the new agreement is a milestone marking POWERCHINA's innovative and diversified development in Nigeria. As the largest market in Africa, Nigeria is a key part of POWERCHINA's global layout.
Since POWERCHINA has entered the Nigerian market, the company has implemented projects worth $1 billion, with installed capability of 1,805 megawatts. Besides, the contract value of projects under construction amounts to $900 million while some $4 billion of other contracts are waiting for implementation. The contract value of key projects has exceeded $8 billion.
