Nigeria's 327km Central Railway, designed and built as an integral part of the steel industry raw material supply route, was handed over by the Bureau of Public Enterprises on 11 January to Global Infrastructure Nigeria Limited (GINL) in terms of a 20-year concession agreement. GNIL operates both the Nigeria Iron Ore Mining Corporation (NIOMCO) and the Ajaokuta Steel company Ltd (ASCL) under concession agreements. Delta Steel is 80% owned by GINL.
Iron ore is moved on the 1,435mm gauge line from mines at Itakpe to both ASCL and the Delta Steel jetty. The Federal government is to complete the remaining 22km of route to Warri from Ovu, the present southern terminal.
A fixed annual concession fee has been set at N25 million ($US192,500). INL is to pay $US5 million over 5 years for assets including 3 locomotives and 71 wagons as well as maintenance equipment located at Itakpe. After three years, GINL will pay a variable concession fee of 50 kobo per tonne/km for up to 164 million tonnes of cargo and 35 kobo per tonne for traffic levels in excess of 164 million tonnes.
[ 100 kobo = 1 Naira. N0.0077 = $US1. - editor
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