Cross River State Governor, Senator Bassey Otu, has officially launched the construction of a 365-kilometre railway project designed to connect the southern and northern parts of the state.
The groundbreaking ceremony took place on Tuesday at the Tinapa Free Zone Resort, marking a significant step forward for the state’s infrastructure development.
The ambitious project is being executed through a Public-Private Partnership (PPP) between the Cross River State government and Messers Reinhoke LLC.
Governor Otu highlighted that the railway initiative is one of the key outcomes of the investment summit held in August 2023 at the Calabar International Convention Centre. The summit aimed to engage financial, infrastructure, and social investment stakeholders in the state’s economic growth plans.
“Today, therefore, marks an important milestone in our quest to expand and diversify the stock of our infrastructure by partnering with Messers Reinhoke LLC for the construction of the Grandlito Railway Project that will run from Calabar to Obudu,” Governor Otu stated during the ceremony.
The railway project, once completed, will cover an approximate distance of 365 kilometers, featuring main terminals in Calabar and Obudu, with additional sub-stations located in Ugep, Ikom, and Ogoja.
Governor Otu disclosed that the estimated cost of the project is $350 million. He emphasized that the PPP model for the project is based on a combination of equity investments and debt financing from financial institutions, with substantial backing from the Cross River State government.
“The importance of the rail project to the economic growth of the state is premised on the strategic location of the state among other sub-nationals,” the governor explained.
“Cross River is frontier to Equatorial Guinea, Cameroon, Sao Tome and Principe. It is also home to the largest export processing zone in Nigeria – the Calabar Free Trade Zone (CFTZ).”
He further noted that the railway line would facilitate intra-state movement and serve as a critical evacuation corridor for goods and services across international borders.
Expressing optimism about the project’s impact, Governor Otu stated that the expected boost in international trade would invigorate the entrepreneurial spirit of Cross Riverians and significantly increase the state’s Gross Domestic Product (GDP).
He urged Reinhoke LLC to approach the project with the seriousness required to meet the stipulated timeline for completion.
The governor also called on communities along the railway’s path to cooperate fully with the construction company and encouraged local residents to apply for sub-contracts and jobs based on their skills and capacities, aligning with the local content policy.
In his remarks, Stanley Orji of Reinhoke Investments LLC, emphasized the broader economic benefits of the project. He said the railway would attract investments, create jobs, and spur the establishment of new businesses in sectors such as high technology, tourism, manufacturing, and agriculture. Orji added that these developments would enhance the ease of doing business in the state, making Cross River an attractive destination for both local and international investors.
He assured that his company is fully committed to fulfilling its contractual obligations and completing the project within the agreed timeframe.