Shippers’ Council Truck Transit Parks and Nigeria economy

Recently, the Nigerian Shippers’ Council organised a breakfast meeting for investors on the N43.2billion Truck Transit Parks it is promoting.

Abiola Seun X-rays the importance of the TTP’s to economy and reduction of accidents in the country’s highway.

Over the years, Nigeria has been wailing under dearth of transport infrastructure which has affected the growth of the nation’s economy.
The deficit cuts across road, air, Inland and rail. But, the lack of infrastructure especially of the roads constitutes a major source of concern to government, Nigerians and investors.
The under-development of the other modes of transportation put a huge burden on roads especially the major trunk roads. For instance, over 95 percent of cargos, human and raw materials are moved by roads while less than two percent are moved by inland waters and less than three percent by rail.
Due to absence of an effective and efficient rail transport system, trailers and other Heavy Good Vehicles (HGVs) play a key role in bulk movement of goods. However, government has recognised that lack of efficient transport system significantly impacts the ease and costs of doing business in the country, hence need to develop transport infrastructure to bridge the deficit.
In view of this, the Nigerian Shippers’ Council (NSC), is partnering with private investors to build Truck Transit Parks (TTP’s), a critical road infrastructure to manage the menace of HGVs which have turned the road carriageways and shoulders into parking lots that has resulted in traffic gridlock affecting business and increasing travel time of commuters traversing the road.

Truck Transit Parks

A Truck Transit Park (TTP) is a modern, common user road transport infrastructure just off the highway where trucks, bus drivers and passengers can conveniently park their vehicles get accommodation, fuel, food, drinks, Rest room, showers, vehicle parts, repairs and maintenance and other basic needs of persons and vehicles on long distance travels.

The TTP To be built in nine locations across the country at the rate of N4.8 billion each. The TTPs would be built in Mararaban-Jos, Kaduna State; Lokoja, Kogi State; Jebba, Niger State; Ore, Ondo State; Ogere; Ogun State; Obollo-Afor, Delta State, Onitsha, Anambra State and Porto Novo, Lagos State.

Economic Importance Of TTP

The TTP is to create economic growth in host states and regional integration between states arising from freight movement. Reduced fatigue induced accidents resulting in fatalities, loss and damage to Haulage cargoes and resultant effect on the economy as it would also improve Transit trade with landlocked neighbouring countries of Niger and Chad.
According to the Executive Secretary of the Council, Barr. Hassan Bello, “The economic implication is, first of all, employment of our people, sanitizing us to be a country, a modern country. You just come in and there is truck Transit Park, you go there and park and then you never see anything like that on the street again. That shows we have modernized our infrastructure. Then, revenue for the investors and the state governments as I told you, employment content because last time we said about 3,000 direct employments and some even 3,000 more indirectly. Don’t forget that all the restaurants will have people who are going to work there, all the hotels and hostels; they are going to have people working for them and many other facilities. So, that is the economic implication.”

Facilities & Technology

TTP’s will provide conducive environment for drivers on long distance travels and other stakeholders by the deployment of quality facilities and technology. These include perimeter fencing, separate parking bays for freight Laden trucks and tankers. Also, well secured entrance and exit gates with electronic plate number sensor.
Each TTP has a projected parking capacity for 1500 trucks with intelligence toll control system with numbered spaces got tricks, tankers and bus parking.
Warehouses for perishable goods and also observation post/ security system with modern communication centres.
The TTP’s will put an end to loss and pilfering of cargoes on highways as cargo owners could trace the location of their cargoes at given time.

Stock Exchange Shows Support To The Project

The Nigerian Stock Exchange (NSC), said attracting private sector funds was the only way to bridge the finance gap as far as Truck Transit Parks (TTPs) dry ports projects were concerned.
Onyema also identified a number of financing options that can be adopted by investors for the TTPs and dry ports projects.
Onyema disclosed that leveraging established PPP funding mechanisms, Special Purpose Vehicles (SPVs) can utilize the NSE’s platform to gain access to low-cost, long term capital.
This, he said, can be achieved through public bond issuance by a project company or by incorporating a separate company to issue bonds and lend the proceeds to the project company.

He said considering that the transport infrastructure development funding gap was estimated to be greater than US$750bn over the next 30 years, it becomes very clear that a way around the financing was a critical issue.
Onyema said attracting private sector funds is the only way to bridge the finance gap in the nation’s infrastructure.

He said, “given that the national budget is approximately $24 billion, and the required annual investment in transportation infrastructure is approximately $25 billion, it is obvious that attracting private sector fund is the only way to bridge the finance gap. The financial participation of the private sector in building infrastructure can take a number of forms, including public private partnership (PPP) and full privatisation.

“A good example is the Lekki-Epe expressway toll road concession project, Nigeria’s first ever PPP for this project, the Lekki Concession Company was able to secure long term financing to the tune of N50billion for the construction phase of the project, with participation from several local and international financial institutions on terms which were regarded as ground-breaking in Nigeria.”

“From our perspective at the exchange, we are committed to exploring and developing innovative ways of financing the nation’s transport infrastructure in order to accelerate the growth of key sectors of the economy” Onyema stated adding further that the Nigeria Infrastructure Debt Fund (NIDF) which is billed to raise N200 billion is the ideal investment vehicle for TTP and IDPs.

“Over the years, the NSE has implemented far reaching transformational policies aimed at providing products that are aligned with investors’ requirements increasing market access and ensuring a fair and orderly market. Recently, the capital market witnessed the birth of the Nigeria Infrastructure Debt Fund (NIDF) which us billed to raise N200 billion.

“The Fund which has its core investment focus on traditional infrastructure sectors, primarily transport, is an ideal investment vehicle for the planned Truck Transit Parks and Inland Dry Ports. We believe that these achievements improve investors’ confidence and will go a long way to support Federal Ministry of Transport (FMOT) and Nigerian Shippers’ Council (NSC) in their quest to unlock the private sector investments required for financing the transport infrastructure gap.”
He described the investment prospects for transportation infrastructure as very promising, adding that if the recently exposed draft rules by PENCOM were issued, they will allow for up to 20 percent Accumulated pension assets (N7.16tn) to be invested in infrastructure compared to the current 5 percent.
He pointed out that this does not include potential investments from insurance, savings and fund managers.
He added that with the engagement of NSE with PFAs and other institutional investors, there is an indication of a healthy appetite for alternative investment outlets such as infrastructure funds, such as ETFs, bonds, among others.
He disclosed further that over the years, NSE has implemented far-reaching transformation policies aimed at providing products that were aligned with investors’ requirements, increasing market access and ensuring a fair and orderly market.

National Assembly Assures Shippers’ Council Of Support

The National Assembly assured the Nigerian Shippers Council of its support toward actualising the proposed Truck Transit Parks.
The Senate Committee chairman on Marine Transport, Senator Sani Yerima said, “We assure NSC of total support in area of legislation, appropriation and to announce that the Senate will pass the National Transport Commission (NTC) bill before the end of the year to transform the shippers council to NTC.

Conclusion

No doubt, the TTP is a needed transport infrastructure that will reduce pilfering of cargoes and carnage on Nigerian roads but there is need for government to walk the talk by adding more impetus to the actualization of the project.

The project as laudable as it is, should not be allowed to exist mainly on papers or pages of newspapers but to exist in reality.
Also, when the TTP is established, there must be regulation that will put the drivers on constant check to ensure that when they park for rest, they will not leave without being checked of alcohol inducement.