News

March 18, 2025

Oyo Govt, shippers, APM terminals collaborate to boost rail for agricultural exports

Oyo Govt, shippers, APM terminals collaborate to boost rail for agricultural exports

By Godwin Oritse

The Oyo State Government, in partnership with APM Terminals Apapa and key agricultural commodities importers and exporters, is exploring ways to maximize rail transport for agricultural exports through the Apapa-Moniya rail corridor.

A delegation led by APM Terminals Apapa Terminal Manager, Steen Knudsen, met with Tilewa Folami, Special Adviser to the Oyo State Government and Director at the International Institute for Tropical Agriculture (IITA), to discuss logistics challenges and solutions. The team also included:

Adetunji Igbaugba – Marketing & Commercial Intelligence Manager, APM Terminals Nigeria

Jan Jensen – Way of Working Senior Lead, APM Terminals Apapa

Adesoji Olaniyan – Key Client Manager, APM Terminals Apapa

Rail Trip and Stakeholder Engagement

The engagement began with a rail journey from Ebute-Metta to Moniya, followed by an assessment of the Moniya rail terminal. The delegation later attended a business lunch with agricultural stakeholders, discussing the Apapa-Moniya rail service’s potential to enhance Nigeria’s agricultural exports.

According to Steen Knudsen, the rail service aims to improve hinterland accessibility to international trade, particularly for perishable agricultural commodities that require scheduled, reliable, and predictable logistics services.

“This service will significantly enhance business prospects for hinterland importers and exporters, ensuring a fixed rail schedule for seamless transportation of goods to Apapa Port,” Knudsen stated.

The meeting also had representatives from the Danish Consulate, including:

Jette Bjerrum – Denmark’s Consul General & Trade Counsellor

Victoria Epelle – Commercial Trade Advisor

Bjerrum emphasized Denmark’s commitment to enhancing Nigeria’s agricultural value chain, highlighting initiatives in export, energy, livestock, and cold chain infrastructure.

“Denmark is working closely with Nigeria to support the agricultural sector. With government-backed cold chain initiatives, we aim to improve market efficiency and export readiness,” Bjerrum said.

Tilewa Folami outlined Oyo State’s industrialization drive, emphasizing infrastructure development to support agriculture and trade. He noted:

Ongoing road construction to improve connectivity, including linking Shaki to Benin

Plans for an international cargo and passenger airport

A major trade summit in May with 150 companies and regional investors

Folami stressed the importance of the Apapa-Moniya rail service in reducing road congestion, particularly as Moniya prepares to host West Africa’s largest market in partnership with France.

“We would appreciate weekly and monthly updates from APM Terminals on rail service progress,” Folami stated. “Additionally, establishing a local office in Moniya for customer support would enhance efficiency.”

Agricultural importers and exporters engaged with the APM Terminals team, raising key concerns, including:

Booking shipments from Ibadan without traveling to Lagos

Cold chain storage and transportation needs

Data sharing by Oyo State Government to drive investment

Cargo consolidation at Moniya terminal

Apapa-Moniya Rail Service: Expanding Logistics Options

In February 2024, APM Terminals Apapa, in collaboration with the Nigerian Railway Corporation, launched the Apapa-Moniya rail service, which operates three times weekly, facilitating cargo movement in and out of Lagos ports.

With continued stakeholder engagement and infrastructure improvements, the rail corridor is set to enhance agricultural exports, reduce transportation costs, and boost trade efficiency across Nigeria’s hinterland.