The Cross River State government in collaboration with some private investors have begun construction of a 365-kilometre railway line at an estimated cost of $350 million.
Governor Bassey Otu, while laying the foundation stone for the project at the Tinapa Free Zone Resort in Calabar, said the railway line would link the southern and northern ends of the state.
At the event held on Tuesday, Otu disclosed that the project is a public-private partnership (PPP) facilitated by Messers Reinhoke LLC in partnership with the state government.
The governor said the railway project was one of the outcomes of an investment summit held at the Calabar International Conference Centre in August 2023.
He said the summit saw the state government working extensively with financial, infrastructure, and social investment stakeholders to join the growth trajectory of the state’s economy.
“Today, therefore, marks an important milestone in our quest to expand and diversify the stock of our infrastructure by partnering with Messers Reinhoke LLC for the construction of the Grandlito Railway Project that will run from Calabar to Obudu.
“On completion, the project will cover an approximate distance of 365km with main terminals in Calabar and Obudu, while three sub-stations will be located at Ugep, Ikom and Ogoja,” Otu said.
The governor said the cost of the project is conservatively estimated at $350 million, adding that the PPP to provide the infrastructure is based on equity investment and debt financing from financial institutions with significant support from the Cross River State government. Otu said the importance of the railway project to the state’s economic growth is based on the state’s strategic location among other sub-states.
According to the governor, “Cross River is frontier to Equatorial Guinea, Cameroon, Sao Tome and Principe. It is also home to the largest export processing zone in Nigeria – the Calabar Free Trade Zone (CFTZ).
“The railway line will not only facilitate the easy intra-state movement but will serve as evacuation corridor for goods and services within international borders.”
Otu said the expected boost in international trade and its ripple effects would strengthen the entrepreneurial spirit of Cross River residents and boost the state’s Gross Domestic Product (GDP).
He directed Linehook Investment LLC, the company in charge of the rail project, to proceed with the necessary seriousness to meet the established completion schedule.
The governor also called on communities in the areas through which the rail project will pass to give as much consent as possible to the developer.
He urged residents of these communities to consider the rail project as their own, as they would apply for partial contracts with the company according to their local circumstances and be awarded the contracts according to their skills and capabilities. Otu told the people of the state that his administration remains committed to transforming the state’s infrastructure landscape through enduring partnerships.
In his speech, the Head of Linehook Investments LLC, Stanley Orji, said the project will attract investments, stimulate job creation and encourage the establishment of new companies in the fields of high technology, tourism, manufacturing, and agriculture as well as promote business in the state.
Orji said the positive impact of the railway project will make Cross River State an attractive destination for local and international investors.
He promised that the company would honor contractual obligations and agreed deadlines for the implementation of the project.
