The Lagos State Government has revealed plans to concession the operations of the Red and Blue Line rail systems to the private sector to ensure their sustainability and repay loans taken for the rail projects.
The disclosure came from the Lagos State Commissioner for Transportation, Oluwaseun Osiyemi, during a recent TVC News interview, where he discussed measures being put in place to sustain the rail systems in the state.
Osiyemi explained that concessioning would involve transferring the operations of the rail systems to private sector players for a specified period, a strategy designed to guarantee continuity and effective management of the rail projects.
“The ultimate game is for all our rail systems we’ve done—that is, the Red Line and Blue Line—there is going to be some concessionairing with the private sector for a period of time to ensure sustainability and continuity,” he stated.
He added, “The concessioning would help pay back the loans taken for the rail projects.”
The commissioner highlighted that the concessioning strategy aims to ensure efficient operations and financial sustainability, aligning with the state’s vision for a world-class transportation network.
Osiyemi further emphasized the significant financial and technical demands involved in operating rail systems, describing them as capital-intensive projects that require substantial resources and specialized expertise.
“What we have done is we have consulted foreign partners who, of course, would run these trains for a particular period of time and train our people—that is, transfer of skills. They will train our people for one to two years, then hand over for our own management,” Osiyemi stated.
The Lagos State Government, under its Lagos Strategic Transport Master Plan, has outlined an ambitious vision to develop multiple rail systems across the state.
Beyond the Red and Blue Lines, the state has plans for additional rail systems, including the 68km Green Line (Lekki Free Trade Zone to Marina), the 85.7km Purple Line (Redemption Camp to Ojo), the 48km Orange Line (Ikeja CBD to Agbowa), and the Yellow Line, to further enhance the state’s transportation network.