Expert suggests evaluation of costs, benefits of Truck Transit Parks

NAN-HE-7
Trucks
By Aisha Cole and Taiye Edeni
Abuja, July 12, 2017 (NAN) The Coordinator, Transport and Logistics Group, Nigerian Economic Summit Group (NESG), Dr Ikenna Nwosu, has suggested a robust framework for the evaluation of costs and benefits of the Truck Transit Parks (TTPs).
Nwosu made the suggestion in a paper presented at a two-day National Summit on the Establishment, Management and Operations of Trucks Transit Parks in Nigeria in Abuja on Wednesday.
He spoke on: “Implementation Strategies and Investment Opportunities in Truck Transit Parks Infrastructure in Nigeria.’’
Nwosu said that factors for evaluation would include: reduced road accidents, less traffic gridlock, reduced vehicle operating costs, increase in freight and reduced noise and environmental pollution.
He stressed the need for the Nigerian Building and Roads Research Institute (NBRRI), the National Bureau of Statistics (NBS) and the Federal Road Safety Corps (FRSC) to work closely on the evaluation of the TTPs.
Nwosu said that the development of Public Private Partnership (PPP) for the TTP implementation “requires the collaboration of all critical stakeholders in the supply chain’’.
He said that there was need for government regulatory bodies to consider funding by the international financial institutions, which could be useful as a catalyst in a PPP arrangement.
Nwosu said that a single-digit interest rate funding should be encouraged and the Central Bank of Nigeria (CBN) should play a leading role in funding the project.
“Government should recognise that private financing of infrastructure must provide value for money, when compared to funding investments through government borrowing.
“The financing of PPP projects, therefore, needs to be efficient and to be structured so that the returns on investment would reflect the risks, so that contingent fiscal liabilities are well managed.
“Government should drive down the cost of finance by ensuring transparency,’’ he said.
Nwosu said that there was need to ensure that the TTPs were utilised and remain profitable, adding that it was the responsibility of the different arms of government to drive utilisation.
According to him, the trucking system is operational in 40 countries, with over 2,500 parking spots.
He said that the TTPs in Europe had a combined parking area of over 249,000 spaces, which served as a clearing house, utilizing truck operator input, to create a directory of parking locations.
Nwosu recalled that a feasibility study for establishment of the TTPs was conducted in 2010 in some areas such as Lokoja, Ore, Obollo-Afor, Jebba and Ogere.
He added that the report showed that the project was economically viable and worthwhile, with various financing options. (NAN)
AIC/TY/AJA/PIO
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(Edited by Adeleye Ajayi/Idonije Obakhedo)