Business and Economy

Government revenue from rail transport increased in Q2 of 2023

According to National Bureau of Statistics (NBS) rail transport data issued in Q2 2023, the volume of goods/cargos transported in Q2 2023 reached 56,029 tons, up from 31,197 tons in Q2 2022, demonstrating a significant increase trend. Similarly, goods/cargo revenue was N188.03 million in Q2 2023, up 105.04% from N91.70 million in Q2 2022.

Given its importance in the supply chain and trade, the increased use of rail for transportation is a beneficial development. As a result, there is a need to assist the expansion of the rail transport sector by streamlining operations, cutting overheads, and optimizing routes to meet rising demand. Two actions can aid in development.

To begin, the government should prioritize the construction of new routes while maintaining current ones, as well as the combination of rail services with other means of transportation, in order to improve rail service coverage. The sub-national government can work together to build inter-state rail routes, improving the mobility of people and products across states and opening up new areas along the newly built train routes.

Second, in collaboration with the commercial sector, cutting-edge technology and digital solutions can be adopted to improve ticketing, tracking, and consumer satisfaction. These activities are required to attract new rail passengers while improving the experience of existing customers. SOURCE: CSEA Africa

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