By Amin Kef (Ranger)
In a recent nationwide survey conducted by this medium, Sierra Leoneans have shown overwhelming support for the revival of rail transportation in the country. This resurgence is not merely a nostalgic sentiment but a calculated move to stimulate economic growth based on historical data. Sierra Leone’s railway history dates back to 1893 and during its peak, it played a pivotal role in connecting the country’s interior with the capital city, Freetown, and its seaport. At the time of independence in 1961, the railway was thriving, employing over 10,000 Sierra Leoneans and serving 49 train stations.
The railway’s golden era was characterized by two types of trains: the Goods Train, which transported economic commodities such as cocoa, coffee, and oil palm, and the Passenger Train, catering to the transportation needs of thousands of people daily. This thriving railway network not only created employment but also boosted the nation’s wealth. However, corruption and mismanagement eventually led to its closure in 1975.
Fast forward to recent years, significant developments have taken place in Sierra Leone’s railway sector. African Minerals Limited invested in the Pepel Railway and Port during President Ernest Bai Koroma’s tenure, under a Build, Operate, and Transfer (BOT) framework. However, in 2020, they handed over these assets to the Government of Sierra Leone. Subsequently, in 2021, the government leased the assets to Kingho Railway and Port Company. Still, concerns arose over the low annual lease rent and the high fees charged to other mining companies for transportation.
In January 2023, the Government terminated the lease agreement with Kingho, and this decision was legally sound as it had been subject to revision after two years. During this period, ARISE Integrated Industrial Platforms (ARISE IIP) stepped in with an enticing proposal. ARISE IIP offered a $476 million investment to refurbish the Pepel Tonkolili Railway and Port, with plans to reintroduce passenger rail services connecting provincial areas up to neighboring Guinea. A 10% dividend to the Government and surface rents to landowners sweetened the deal.
The unanimous approval of this new lease agreement by the Cabinet was no surprise given its substantial benefits. The railway network revitalized by African Minerals Limited passes through over 200 villages in the provinces, promising widespread advantages with the reintroduction of passenger train services. The increased transportation of goods and produce is expected to have a positive impact on the country’s economy.
As of now, ARISE IIP has secured seven passenger railcars from Japan, scheduled to arrive at the Port on October 26, 2023. This development marks a significant milestone in Sierra Leone’s efforts to rejuvenate its railway system.
In addition to its railway investment, ARISE IIP is making substantial strides in Sierra Leone’s industrialization. The company is investing $120 million in the SIZ – Koya (Sierra Leone Industrial Zones) development, a public-private partnership that was launched by President Julius Maada Bio on the 26th April, 2023.
The first phase of this project includes 16 production units focused on import substitution industries, generating an estimated $165 million in private investment and creating 2,500 direct jobs. Phase 2 will expand this with 37 production units and an additional 6,500 jobs.
The SIZ-Koya integrated industrial zone is set to host companies specializing in agro-industry, timber processing, pharmaceuticals, consumer goods manufacturing, electric vehicle manufacturing, cement, and tile manufacturing.
Gagan Gupta, Founder and CEO of ARISE IIP, expressed the company’s commitment to building a sustainable future through industrial development, creating job opportunities and fostering economic growth in Sierra Leone.
ARISE IIP’s management of the Pepel Rail and Port, in conjunction with the development of the SIZ – Koya industrial zone, promises to facilitate the transportation of agricultural products, generate employment opportunities, and reduce the cost of transporting goods for various companies.
Respondents in our nationwide survey believe that the reintroduction of rail services by ARISE IIP will significantly improve Sierra Leone’s economy compared to the previous operator, Kingho.
Indisputably, Sierra Leone is witnessing a resurgence in its railway and industrial sectors spearheaded by ARISE IIP’s substantial investments. These initiatives have the potential to stimulate economic growth, create employment opportunities and position the country on a path to prosperity.
