Railways don’t make profits off ticket prices- Amaechi

Minister of Transportation, Rotimi Amaechi, has said railways do not make profits from passenger ticket prices across the world.

He made this statement in a Channels Television interview while responding to the clamor to increase the ticket prices in order for the railway to make enough profit to pay back its loans.

Amaechi argued that raising the ticket price could affect the poor.

“If we increase the cost of the tickets, what about the poor man that wants to move from Abuja to Kaduna? What about the poor man who works in Abuja and lives in Kaduna to save the cost of accommodation,” he said.

The Minister noted that the railway was not a profit-making venture but a means to grow the economy, adding that it was built to serve the poor.

“So, usually, all over the world, you subsidise railway, so that the poor can have an easy means for transportation so that you improve your economy. Don’t forget, the railway is built not for passenger transportation, it is built as a means to grow the economy of a country.

“The economy will pay for it. Take the numbers of businesses that you grow across that line, take the numbers of companies you’ve established, take the taxes they pay to you,” he added.