Minister of Transportation, Chibuike Amaechi, has said that the railway wagon assembly plant under construction at Kajola in Ogun State, would generate about 5,000 jobs when completed.
The Minister said this at the weekend during the plant’s ground-breaking ceremony performed by Vice President Yemi Osinbajo, at the project site in Kajola.
Amaechi described the plant as one of the gains of the Federal Government’s partnership with the Chinese Civil Engineering and Construction Company (CCECC) under the ongoing rail construction projects, particularly the contract for the supply of rolling stock for the Abuja-Kaduna, Warri-Itakpe and Lagos-Ibadan rail lines.
He said: “To meet the increasing demand of both passenger and freight on the new Nigeria standard gauge ailway service, the Federal Government awarded contract for the procurement of rolling stock, locomotives, coaches, wagons and contemporary Diesel Multiple Units to serve movement of passengers and freight on the Abuja – Kaduna, Itakpe – Ajaokuta – Warri train services as well as the ongoing Lagos – Ibadan railway. It will also serve any railway service in the West-African sub-region.
“The Ministry of Transportation, realising the need to set up this type of plant, encouraged CCECC to establish it. It is expected that the plant would generate job opportunities for Nigerians, and as well, facilitate the much-desired objective of the government towards the local content capacity development.
“It was in the pursuit of these objectives that the Federal Ministry of Transportation signed an agreement with CCECC Nigeria Limited in March 2018, to establish this plant for the production and assembling of rolling stock, spare parts and maintenance equipment in Nigeria. Consequently, CCECC conducted a feasibility study in which the choice of Kajola, Ogun State, was arrived at as the most suitable location.
“This project is, therefore, a direct investment of CCECC Nigeria Limited in the country and would remain as part of the gains from the contract signed for the supply of rolling stock. This will be the first of its kind in Nigeria. The first batch of the wagons to be assembled from the production line of this plant will form part of the rolling stock for Lagos – Ibadan and Abuja – Kaduna railway operations. Subsequently, other rolling stocks would be produced as its production capacities increase.
“The project, when completed, would be able to generate about 5,000 jobs and, on the long run, Nigeria would be able to manufacture rolling stock for Nigeria’s use and for other African countries. Moreso, we would be able to conserve our much-needed foreign exchange, which can be deployed to other areas of development. Among all these, it is cardinal to mention that the sustainability of our railway modernisation projects would depend on our ability to develop local capacity to construct, maintain and manage our new railway system.”
NAN
