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Dangote to invest in railways

Posted by BY EBERE NWOJI on 2005/04/18 | Views: 1368 |

Dangote to invest in railways

DANGOTE group of companies is set to diversify into locomotives in a bit to revive the Nigerian Railway Corporation (NRC).

DANGOTE group of companies is set to diversify into locomotives in a bit to revive the Nigerian Railway Corporation (NRC).

President of the Group, Alhaji Aliko Dangote who gave the hint at a recent briefing in Lagos said he has already opened discussions with the federal government and some Chinese experts on how to revive the nationís rail system for easy carriage of good across the country.

Dangote who had some years ago indicated interest in the Nigerian rail system has been withholding actions although management of NRC has been waiting patiently to hear his area of interest in the system.

But addressing newsmen in his Ikoyi Lagos office on the recent hike in the price of cement, Alhaji Aliko attributed the development to hike in local transport cost insisting that rail transport has remained the only alternative.

"We are working out some- thing with the NRC even if they want us to buy locomotives we donít mind. You know we donít mind to invest our own money in fact I am going to China on Tuesday to talk to some experts to see how they can improve our rail way system because unless there is railway prices of goods may not come down", he stated.

According to him, the cost of hiring trucks to carry goods from one port of the country to another has almost doubled and when the high transport cost is transferred to the goods carried it hikes the price above the reach of the masses.

He said this is one of the reasons for the present hike in the price of cement from N950 to N1,500 per bag.

According to him, a truckload of goods from Lagos to Abuja an Kano which used to cost N120,000 is now as high as N180,000 to N190,000 adding that this has spelt the need for revival of the nationís rail system for easy and cheap haulage.

He said the present hike in transport cost which is fast translating to high prices of goods in the country does not only affect his company or other private sector operator firms but is also giving government great concern.

Alhaji Dangote who spoke on other issues concerning his company said the intended visit to the stock market by his company will be a gradual process.

According to him, Dangote is not going to storm the Nigerian Stock Exchange market as a group but as separate companies so as to be accommodated by the Nigerian stock exchange.

He said Dangote Group is also going into dual listing with Nigerian Stock Exchange and London Stock Exchange.

We explained reason for the dual listing saying that the Nigerian market is not liquid enough to accommodate the company as a group.

He said to ensure a smooth entry into the market the Dangote group is currently undergoing restructuring.

"We are right now doing some restructuring in which we are separating different project from different companies we are creating companies according to different product lines we have here. Dangote flour mills Plc, Dangote Sugar refineries Plc, Dangote Salt Plc and Dangote Pasta Plc so you can see that they have been separated from the main group and like that they will go to the market," he explained.

According to him, the Dangote flour mills will be the first company to source for funds in the market.

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Comments (3)

Abieyuwa(Edo, Nigeria)says...

Otasowie means evening life is better than morning life. There is an error in your ‚Äúevening life is better than evening life‚ÄĚ?

Naija g(Houston, Minnesota, US)says...

Sokari doesn’t mean joy. Joy is Biobela. Go to the village and ask the meaning of the name.

Fay(Katy, Texas, US)says...

Actually translates to bravehearted.