Dangote to establish rail connections to reduce haulage costs

Dangote to establish rail connections to reduce haulage costs
Published: 04 October 2011

The Dangote Group of Nigeria said it will soon construct railway tracks from all its cement factories to the national railway to reduce transport costs.

Atkin Adesokan, Managing Director of the Dangote Cement Terminal in Lagos, said the project was necessary because transport costs still remain a challenge.

Adesokan said Dangote would establish a freight vessel to boost exports to the Economic Community of West African States (ECOWAS) markets. He said the move was to forge strong bilateral trade relationships among ECOWAS member-countries as well as to reduce haulage costs.

"The challenge is taking our goods from the factory to the ports, and since there is no railway system, it makes transportation of bulky goods burdensome," he said.