Transnet SOC Ltd. will be taking over Nigeria’s rail concession,
following the General Electric Company’s pull out from the project in line with
its strategy to exit the transportation business.
following the General Electric Company’s pull out from the project in line with
its strategy to exit the transportation business.
Agreements GE reached with the Nigerian government “are now being
negotiated by Transnet and its consortium partners” including SinoHydro of
China and APM
Terminals, the Boston,
Massachusetts-based company said in an emailed response to questions. GE will
focus on infrastructure development in Nigeria in areas such as health care and
power, it said.
negotiated by Transnet and its consortium partners” including SinoHydro of
China and APM
Terminals, the Boston,
Massachusetts-based company said in an emailed response to questions. GE will
focus on infrastructure development in Nigeria in areas such as health care and
power, it said.
GE won a contract last year to
manage Nigeria’s narrow-gauge rail network in partnership with three other
companies.
manage Nigeria’s narrow-gauge rail network in partnership with three other
companies.
It signed an agreement with the West African nation’s authorities in
April to proceed with the interim phase of
the narrow-gauge concession that is expected to grow freight haulage capacity
in the country ten-fold to 500,000 metric tons annually.
April to proceed with the interim phase of
the narrow-gauge concession that is expected to grow freight haulage capacity
in the country ten-fold to 500,000 metric tons annually.
“Transnet has been a trusted partner of GE for several decades,” GE
said. “We have confidence in their ability and that of the other consortium
members to execute on the rail concession project successfully.”
said. “We have confidence in their ability and that of the other consortium
members to execute on the rail concession project successfully.”
Nigeria is opening up its rail system to private investors following
decades of government control as authorities seek to boost infrastructure in
the country that vies with South Africa as Africa’s biggest economy.
decades of government control as authorities seek to boost infrastructure in
the country that vies with South Africa as Africa’s biggest economy.
Bloomberg
