Transport

New rail set to increase transportation of goods by 32 per cent

sgr

Ongoing construction works of the standard gauge railway in Voi on March 15. PHOTO | FILE

Cargo transportation through railway from the port of Mombasa is set to increase by 32 per cent from the current three per cent once the Standard Gauge Railway (SGR) is fully operational.

The SGR is also set to reduce the cost of transportation to Sh8 ($0.08) from Sh20 ($0.20) a tonne per kilometre (km), significantly bringing down the cost of doing business for stakeholders. The rail is expected to carry 4,000 tonnes per trip once complete.

The Mombasa-Nairobi SGR project is set for completion in June 2017, and already 200 km of track has been laid while the remaining part is expected to be complete before the end of the year. Test runs are scheduled for early next year.

Speaking during a railway users’ consultative forum, organised by the Shippers Council of East Africa (SCEA) and Kenya Railways Corporation, the Principal Secretary for Transport Mr Wilson Nyakera said that 75 per cent of civil works on phase one of the project are complete.

The entire stretch is 472 km. Stakeholders are hopeful that the SGR will provide a reliable alternative for cargo transportation. Currently, they rely on road to move their goods to various destinations from Mombasa.

“SGR will significantly reduce transport costs and the time taken to evacuate cargo from the port thereby launching the East African region as a competitive logistics hub,” said SCEA chief executive Gilbert Langat. The second phase of the SGR is expected to start later in the year, where the line will be extended from Nairobi to Naivasha before extending to Malaba, later on.

The Nairobi-Naivasha line will cost about Sh150 billion, exceeding the cost of the Mombasa-Nairobi line. An industrial park is set for construction in Naivasha too.

Each kilometre of the Naivasha line will cost Sh1.2 billion compared to Sh692 million for the Mombasa-Nairobi line. Kenya Railways argued that the line was expensive due to the earmarked terrain including the building of longer bridges.