President Uhuru Kenyatta flags off the standard gauge railway cargo
train on May 30, 2017 as Deputy President William Ruto (left) looks on.
Mr Kenyatta will Wednesday launch the passenger train service between
Mombasa and Nairobi. PHOTO | DPPS
It will cost $500 (Sh50,000) to
transport a 20-foot container from Mombasa to Nairobi by rail, a 37 per
cent discount on what truck operators charge.
Kenya
Railways managing director Atanas Maina said the introductory rates will
apply when standard gauge railway (SGR) starts operating from December.
“These
are very competitive rates that are at least 30 per cent lower than
those charged when cargo is transported on trucks and we will review the
frequency of the trains according to demand,” he said.
He
spoke at the Mombasa port’s second container terminal where President
Uhuru Kenyatta flagged off a freight train loaded with 59 containers.
The
rates are expected to rattle road transporters who charge an average of
Sh80,000 per truckload. Transporters have asked the government not to
subsidise freight transport, saying this will drive them out of
business.
China Communications Construction Company
will operate the new rail built by Chinese loans estimated at Sh447.5
billion, including financing costs.
The railway will supplement a decrepit narrow-gauge track prone to derailing and operated by Rift Valley Railways.
The railway will supplement a decrepit narrow-gauge track prone to derailing and operated by Rift Valley Railways.
The
new railway line will ferry heavier and bigger containers faster,
relieving pressure on the region’s congested roads as well as increase
Kenya’s competitiveness as an investment destination, Mr Maina said.
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