Only rail exports will be allowed into inland container depot - State

Standard gauge railway trains at the Port of Mombasa. FILE PHOTO | NMG 

By CHARLES MWANIKI

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Summary

• The Kenya Revenue Authority and the Kenya Ports Authority say that only exports by rail will be allowed into the inland container depot (ICD) in Nairobi, which is linked directly to the port via the standard gauge railway.
• Kenya Railways is also offering promotional freight charges until June in a bid to woo more shippers to use the railway.
• Directives targeting imports have also been put in place in recent weeks, including a requirement that all un-nominated containers belonging to upcountry importers will be transported on the SGR to the Embakasi ICD for final clearance.

Exporters using road transport will no longer be allowed to use the inland container depot in a move that is likely to drive more cargo to the standard gauge railway.

In a notice to exporters and clearing agents, the Kenya Revenue Authority and the Kenya Ports Authority say that only exports by rail will be allowed into the inland container depot (ICD) in Nairobi, which is linked directly to the port via the standard gauge railway.

The government has recently made directives meant to drive cargo to the Mombasa-Nairobi railway, which was completed last year at a cost of Sh327 billion. Kenya Railways is also offering promotional freight charges until June in a bid to woo more shippers to use the railway.

“Exporters and clearing agents are notified that effective March 31, 2018, all trucks conveying intra trade cargo to Partner States and all other exports by road shall no longer be allowed into ICDE…only exports by rail will be allowed into ICDN,” said KRA and KPA in the notice.

An estimated Sh23 billion has been spent on the upgrade of the Embakasi ICD, which now has the capacity to handle 450,000 20-foot containers annually.

Directives targeting imports have also been put in place in recent weeks, including a requirement that all un-nominated containers belonging to upcountry importers will be transported on the SGR to the Embakasi ICD for final clearance.

READ: Kinyua now orders State contractors to use SGR

Head of Public Service Joseph Kinyua last month also ordered government departments and agencies to transport imports and exports cargo on the SGR, with the directive also covering cargo for projects undertaken by third parties.

The Kenya International Freight and Warehousing Association has, however, come out to oppose the directives saying they are being implemented without prior consultation with stakeholders.

Currently, Kenya Railways is operating three cargo trains per day from Mombasa to Nairobi, and is targeting to raise the number to six by June and 11 by November.