The Kaduna Inland Dry Port (KIDP), envisioned as a crucial component of Nigeria’s strategy to enhance cargo handling capacity and decongest its seaports, is grappling with significant operational challenges, primarily stemming from inadequate rail connectivity. Originally conceived as part of a network of seven inland dry ports across the country, the KIDP, along with others, was designed to facilitate the seamless movement of goods inland, reducing pressure on coastal ports and boosting economic activity in the hinterland. However, the promise of efficient and cost-effective cargo transportation via rail has remained largely unfulfilled, hindering the KIDP’s ability to reach its full potential and contribute meaningfully to the national economy.
The ambitious plan to establish seven inland dry ports, each with a substantial capacity to handle thousands of twenty-foot equivalent units (TEUs), was approved by the Federal Executive Council in 2006. These ports were subsequently concessioned to private operators, tasked with the responsibility of developing and managing these facilities to international standards. The expectation was that these inland ports would act as strategic hubs, facilitating trade and stimulating economic growth in landlocked regions. However, progress has been slow and uneven, with only three of the seven planned ports becoming fully operational. The KIDP, while operational, faces constraints in its cargo handling capacity, significantly smaller than initially envisioned.
The Nigerian Shippers Council (NSC), the economic regulator of the ports, has acknowledged the challenges plaguing the inland dry ports. A report released by the NSC highlighted the fact that only three of the seven ports, including the KIDP, were fully operational. Despite the signing of a Memorandum of Understanding between the NSC and the Nigerian Railway Corporation (NRC) in 2024 aimed at improving rail connectivity, the situation on the ground remains unsatisfactory. The KIDP’s Managing Director, Mr. Salami Razak, confirmed the persistent challenges related to rail transportation, emphasizing the crucial role of rail connectivity in realizing the full potential of inland dry ports.
The absence of a reliable and efficient rail link between the seaports and the KIDP has forced operators to rely heavily on trucking, a more expensive and less efficient alternative. Razak highlighted the significant cost implications of this reliance on trucking, stating that the KIDP is losing approximately 50% of its potential profit due to the suboptimal functioning of the rail system. He emphasized that the core advantage of inland dry ports lies in their ability to reduce transportation costs by leveraging rail transport. The current situation, however, negates this advantage, making the KIDP less competitive and hindering its growth.
Despite these challenges, the KIDP has witnessed some progress in terms of cargo handling. Razak reported that the port handled 5,000 TEUs of containers in 2024, primarily transported by trucks. This figure, however, represents a fraction of the port’s potential capacity, underscoring the urgent need for improved rail connectivity. The continued reliance on trucking not only increases costs but also contributes to road congestion and increased wear and tear on the nation’s road infrastructure. Furthermore, the uncertainty and delays associated with road transport negatively impact supply chains and hinder trade efficiency.
The situation at the KIDP underscores the critical need for a concerted effort by all stakeholders, including the government, the NRC, and the private sector, to address the challenges hindering the effective utilization of the rail network. Investing in upgrading and maintaining rail infrastructure, streamlining operations, and ensuring the security of cargo along rail routes are essential steps towards unlocking the full potential of the KIDP and other inland dry ports. The realization of this potential is crucial for decongesting seaports, stimulating economic growth in inland regions, and facilitating trade across the country. The success of the inland dry port initiative is ultimately tied to the efficient and reliable functioning of the rail system, and addressing this critical challenge is paramount for achieving the broader economic development goals.
