Nigeria in talks with SA’s Transnet for Railway concession

Business News

ABUJA, Nov 18 (Reuters) – Nigeria is in talks with Transnet for the concession to run its railways after General Electric , which has spun off its transport business, handed the leadership of the consortium to the South African firm, the transport minister said on Sunday.

“We are in talks with Transnet. When we conclude we will sign the concession agreement and they will rehabilitate the entire 3,500 kilometers of railways,” Transport Minister Rotimi Amaechi told a government delegation in Abuja.

Transnet was not immediately available for comment.

A procurement process adviser told Reuters last week that General Electric (GE) had pulled out of the $2 billion concession deal with the Nigerian government for two rail lines connecting northern cities to others in the south.

GE on Thursday said it had handed over the leadership of a consortium chosen to run the Nigerian rail concession to Transnet.

The concession aims to cover about 3,500 km (2,200 miles) of existing narrow-gauge lines from the southwestern commercial capital Lagos to Kano in the north and from southeastern oil hub Port Harcourt to Maiduguri in the northeast.

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