Opening of standard gauge rail delayed by six months to Jan 2018
A section of the standard gauge railway. PHOTO | SALATON NJAU
Cargo owners and passengers will wait longer to use the new standard gauge railway linking Mombasa to Nairobi after the government pushed back the date for it commercial launch.
Transport principal secretary Irungu Nyakera told MPs on Tuesday that the new, faster railway will be ready in June, but open for commercial traffic six months later or January 2018.
“It will take us about six months for the freight and commuter train services to operate commercially. We will be setting tariffs in the six months period,” he told the National Assembly’s Transport committee on Tuesday.
Kenya Railways had expected the tracks for the Mombasa to Nairobi line to be ready by next month and the rail opened for commercial traffic in June 2017. The goal of the project is to cut the cost of transport and boost trade by replacing the slower, narrow-gauge line.
It will cut the journey between Nairobi and Mombasa to four-and-a-half hours from 13 hours and reduce freight costs to eight US cents (Sh8.14) per tonne per kilometre from the present average of 20 US cents (Sh20.37).
But business people who had been promised these benefits from June will wait longer with December 2017 being the earliest date they can enjoy faster movement of cargo cheaply.
In addition to speeding up the flow of cargo, Kenya hopes to transform its passenger service, now plagued by delays.
The PS informed the committee that the ministry has set aside Sh19.3 billion for completion of the Mombasa-Nairobi line and Sh90.3 billion for Phase II, the Nairobi-Naivasha line.
“We are at 98 per cent completion of civil works for the Mombasa-Nairobi SGR. On December 16 the first locomotive will be released from China to Nairobi with the first train expected to operate the line in June 2017,” Mr Nyakera said.
China Exim Bank is already financing the first phase running from Mombasa to Nairobi at a cost of $3.8 billion (Sh387 billion), excluding interest.
The 370 kilometre third section, which will include a branch to Kisumu next to Lake Victoria, will cost $4.9 billion (Sh499.1 billion) to construct and supply with locomotives and rolling stock, Kenya Railways said.
In October, Kenya Railways launched construction of the second phase of the railway, a $1.5 billion (Sh152.5 billion) 120 km section linking Nairobi to Naivasha.
A private management company to operate the Nairobi-Mombasa line is expected to be in place by mid-2016.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
