The newly launched Lagos-Ibadan container rail movement has hit early hurdles as cargo owners avoided the service over fears of double handling charges at destination terminal in Ibadan, investigations by Nigerian Tribune can reveal.
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Reports indicate the freight service struggled to get containers after its inaugural fully loaded trip on September 12th from Apapa Port to Moniya, Ibadan.
Importers opted for road haulage, citing concerns that charges already paid at Lagos ports were being re-levied when cargoes arrive in Ibadan. This led to low patronage of subsequent rail trips.
The Nigerian Railway Corporation (NRC) confirmed the hitch, attributing it to apprehension around repeated fees. The agency says it has now resolved the issues.
According to NRC’s Lagos District Manager, the initial challenges made cargo owners refuse approval for their containers to be freighted on the Lagos-Ibadan rail.
He however disclosed that matters regarding Customs examinations and handling costs have been addressed. The NRC is optimistic of full container load on trips resuming this week.
The Lagos-Ibadan cargo rail service was recently launched by the federal government to ease congestion at Apapa Port. Officials project 90 monthly trips at a frequency of 3 trips daily.
But fears of importers paying twice on logistics have stalled optimal utilization of the service so far. With resolutions reached, the rail freight is expected to commence smooth container evacuation from Lagos ports.
The development highlights how optimal use of rail infrastructure also depends on harmonizing operational charges to assure users of cost efficiency.
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