China Railway Construction Corp has signed a $12 billion deal with Nigeria to construct a West African coastal railway, stretching about 1,402 kilometres. This was announced by Chinese state news agency Xinhua on Thursday.

The project will link Nigeria’s economic capital, Lagos, from the west with Calabar in the southeast. Both are considered critical commercial hubs of the country, holding two of the busiest seaports. The project will create about 200,000 jobs and will help Beijing gain a footing in resourceful regions of Africa.

China seeks to establish standard trading relationships and construction projects around the world, thereby placing its manufacturing sector higher in the value chain.

“It is a mutually beneficial project,” CRCC Chairman Meng Fengchao told Xinhua. He added the railway project will lead to equipment exports from China worth $4 billion, including construction machinery, trains and steel products.

Trade between China and Nigeria totalled $13.6 billion last year.

All of these efforts have stepped up its presence on the African continent, as it seeks more resources and new markets to drive its economic growth.

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