China Railway Construction Corporation (CRCC) subsidiary China Civil Engineering Construction Corporation (CCECC) has signed a contract with Nigeria’s Federal Ministry of Transportation for the development of the Nigerian Eastern Railway.

The value of the contract stands at around $3.02bn.

The scope of the contract includes the reconstruction and rehabilitation of the railway network spanning from Port Harcourt to the northern city of Maiduguri.

This eastern railway network, which passes through 12 states, connects several important cities in the eastern region.

Apart from the development work on the current eastern railway, the project will also involve the construction of additional branch tracks.

Once completed, the renewed railway network will be interconnected with standard gauge railways, along with connections to ports and key cities.

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By GlobalData

With five horizontal and three vertical railways, the proposed Nigerian railway network is said to facilitate industrial development and commercial activities.

The CRCC stated that the project will expedite Nigeria’s industrialisation and urbanisation process by encouraging the development and employment of resources along the network.

This February, Portuguese construction company Mota-Engil started working on the $1.8bn railway track that will link Nigeria and Niger in West Africa.

The ground-breaking ceremony was held at the site of a proposed station in Katsina’s Makira.

Earlier this year, Nigerian Transport Minister Rotimi Amaechi concluded the contract with Mota-Engil for the construction of the 283km line connecting the northern Nigerian city of Kano with Maradi, Niger.

The rail line will also cover other cities such as Danbatta, Kazaure, Daura, Mashi, Katsina and Jibiya in Nigeria.

This rail project is expected to boost commerce in the region and aid in establishing Nigeria as the export hub.