Importers and exporters in Nigeria’s hinterlands now have an alternative to road transport with the Apapa-Moniya rail service, offering a direct link to global markets.
The service, launched last month in partnership with the Nigerian Railway Corporation, now operates three times a week, cutting down the time it takes for goods to reach the port while offering exporters a structured and cost-effective alternative to Nigeria’s congested road network.
Road transport has long been a major challenge for agricultural exporters, with congestion, delays, and high costs making it difficult to move goods to Apapa port.
Perishable commodities in particular suffer from unpredictable transit times, often resulting in losses. The newly launched rail service promises a faster, more reliable solution, reducing travel time and the risk of spoilage.
This week, APM Terminals Apapa engaged with agricultural commodities exporters and the Oyo State government to discuss how the rail corridor can ease the movement of goods.
Led by Steen Knudsen, the terminal manager, the delegation team assessed the Moniya rail terminal following a trip from Ebute-Metta.
Knudsen stated that the rail service provides exporters with a predictable, scheduled logistics option, mitigating the risks associated with road transport.
“The vision behind the Apapa-Moniya rail product launch is to open Nigeria’s hinterland, making it easily accessible to international trade,” he said. “This would greatly improve the business prospects for importers and exporters in the hinterland that require a fixed, reliable rail schedule to get their commodities to Apapa port.”
Jette Bjerrum, consul general of Denmark and Trade Counsellor, stated that Denmark is ready to support Nigeria’s agricultural exports during the visit.
“Denmark aims to support local interests in the export, agricultural, energy, and livestock sectors, with government approval for cold chain initiatives to enhance market support,” she said.
Stakeholders and exporters at the meeting raised concerns about booking shipments from Ibadan without traveling to Lagos, the need for cold chain solutions, and real-time data sharing to enhance trade efficiency.
“It would help if APM Terminals shares data on the progress of the rail service with us, weekly and monthly updates,” said Tilewa Folami, special adviser to the Oyo State government, who outlined plans to industrialize the state, improve connectivity, and develop West Africa’s largest market.
“On the part of the Oyo state government, there are plans in the making for a cargo and international passenger airport,” he said.
They also suggested APM Terminals establish a presence in Moniya for better service delivery.
Frank Ojadi, a professor of operations management at Lagos Business School, had mentioned to BusinessDay that logistics is a critical failure point for Nigeria’s non-oil export goals, citing accumulated costs and delays from transporting export goods to Nigerian ports.
He explained that the famous groundnut pyramids were not a sign of surplus production but rather a result of poor logistics, as inadequate rail infrastructure prevented timely transportation.
“The rails were not there to move those products out there. And what do you do? So you store it, and that’s how they came by the groundnut pyramids. The truth of the matter was simply that there was a logistic problem,” he said.
He warned that if Nigeria’s logistics infrastructure fails to keep pace with population and economic growth, the export problems will persist.
SOURCE: BUSINESSDAY
