GE, a US diversified technology, media and financial services company, said on Monday it had received a letter of intent (LOI) for the supply of 25 locomotives to the Nigerian government by 2010 as part of its growing business within Africa.
“We hope that our partnership with GE in successfully implementing this revitalization programme will serve as a model to the railway industry in the entire African continent,” said Alhaji Ibrahim Bio, Nigeria’s Minister of Transportation.
Bio said the delivery of the 25 new locomotives would be vital to Nigeria’s cont inued railroad infrastructure development and economic growth, according to a GE statement here Monday.
The American firm supplies technology products and services to several African rail companies, such as the pan-African rail utilities, Cameroon Rail Authority (CAMRAIL) and the Tanzanian/Zambian Railways Authority (Tazara).
Kenya and Uganda have also embarked on plans for the construction of a standard gauge railway connecting the two countries to replace the current colonial-era railway system.
The announcement is likely to stir interest in Kenya and Uganda, as both countries go through the motions of modernizing their railway infrastructure to gain maximum benefit on their trade.
Kenya and Uganda are determined to revive the comatose railway system into a critical enabling engine of the economy.
The railway situation in the region has been a major hindrance to trade and only accounts for 25% of cargo haulage from the Port of Mombasa to its hinterland, composed of Uganda, Rwanda and Burundi, Congo and the Democratic Republic of Congo (DRC), compared to the recommended 80%.
Throughout the continent, GE Transportation’s rail division has service, mainten ance and refurbishment contracts with several major rail utilities, in Egypt, Cameroon, Congo, Gabon, Namibia, Zambia, Tanzania and South Africa.
The entire installed base of GE’s locomotives is in the range of 1,200 across the African continent.
The division is also involved in the supply of spare parts and support to African countries that run GE’s locomotives, and is also exploring upgrade programmes for some of the ageing locomotives.
Nairobi - 11/05/2009
Pana
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