InfraPitch: LAPSSET Railway Project

Executive Summary

Case Study 

LAPSSET Railway Project

Project Overview

Oyebanji presented an ambitious and pivotal component of the LAPSSET Corridor: a $3 billion, 533-kilometre railway line from the Lamu deep-sea port to Isiolo, Kenya. This project forms the first phase of a larger vision to eventually connect Kenya with Ethiopia and South Sudan, creating a vast transportation backbone for East Africa.

Designed to handle 25 million tonnes of freight and 12 million passenger journeys annually, the railway is central to facilitating regional trade and providing landlocked countries with efficient access to a maritime gateway .

The project’s financial and strategic positioning is built on a strong commercial case. Sponsored by Jibus Nigeria Limited with 30% equity and delivered through an SPV, the project forecasts a 15.75% IRR and is targeting financial close by Q4 .

However, the jury’s feedback revealed the complexity of regional megaprojects. Key questions centred on the demand case, with jurors querying why routes would prefer Lamu over existing corridors like the one to Djibouti, especially given the instability in South Sudan. The team responded by citing feasibility research and the potential to bypass the political risks associated with the Djibouti corridor.

But as one juror cautioned, cross-border infrastructure is notoriously difficult to execute, and the team was advised to strengthen their risk mitigation strategies around shifting political commitments across nations. This project underscores the balance between economic potential and the formidable execution challenges of cross-border infrastructure.

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