The Lagos State Government plans to concession the operations of the Red and Blue Line rail systems to the private sector for sustainability and loan repayment.
- This announcement was made by Lagos State Commissioner for Transportation, Oluwaseun Osiyemi, during a recent interview with TVC News.
- Osiyemi explained that concessioning involves transferring rail system operations to private sector players for a specified period to ensure continuity and effective management.
- He stated, “The ultimate game is for all our rail systems we’ve done—that is, the Red Line and Blue Line—there is going to be some concessionairing with the private sector for a period of time to ensure sustainability and continuity.”
- The concessioning strategy is also aimed at helping to repay loans taken for the rail projects.
- Osiyemi highlighted the financial and technical demands of operating rail systems, describing them as capital-intensive projects requiring substantial resources and specialized expertise.
- To address challenges and build local capacity, the Lagos State Government has engaged foreign partners to temporarily manage train operations.
- These partners are expected to ensure efficient operations while transferring essential skills to Nigerian personnel through a structured training program lasting one to two years.
- Osiyemi stated, “What we have done is we have consulted foreign partners who, of course, would run these trains for a particular period of time and train our people—that is, transfer of skills. They will train our people for one to two years, then hand over for our own management.”
- The Lagos Strategic Transport Master Plan outlines an ambitious vision to develop multiple rail systems across the state.
- Currently, only the first phases of the Red Line and Blue Line rail systems have been completed, with passenger operations already underway.
- The Blue Line is a 27km electric rail line designed for sustainable operations, with its first phase covering 13km from Lagos Marina to Mile 2, completed in 2023 and commencing commercial operations in September, transporting over 2 million passengers to date.
- The Red Line spans 37km from Agbado in Ogun State to Oyingbo in Lagos and operates on diesel, with its first phase covering a 27km stretch.
