AEA project in Mombasa targeting provision of storage facilities for grain products using the standard gauge railway (SGR) corridor.
The facility was built at a cost of over Sh3.6 billion in the 1990s and is now valued at over Sh14.4 billion, according to industry estimates.
Similar grain handling facilities serving the old metre gauge railway are situated in Mombasa, Nairobi, Naivasha and at the Kenya and Uganda border.
AEA Limited, a subsidiary of TransCentury Group, is set to fight it out for control of the lucrative grain handling business with Mombasa tycoon Mohammed Jaffer after unveiling its own storage facilities.
The firm has launched a grain handling project in Mombasa targeting provision of storage facilities for grain products for cargo owners using the standard gauge railway (SGR) corridor.
AEA Limited chief executive Nicholus Kithinji told the Business Daily the firm will offer storage services through silos and warehouses at the main sea port serving the railway but would also set up facilities in other dry ports along the railway.
“The SGR line provides an exciting transit solution but clients will require specialized equipment to store goods in transit that require special handling,” said Mr Kithinji.
The move is set to heat up competition in the lucrative sector.
Similar grain handling facilities serving the old metre gauge railway are situated in Mombasa, Nairobi, Naivasha and at the Kenya and Uganda border.
Leading players in the sector include Grain Bulk Handlers Limited (GBHL) owned by Mombasa tycoon Mohammed Jaffer. GBHL grain terminal specialises in the discharge and handling of bulk grain cargo at the Port of Mombasa.
The facility was built at a cost of over Sh3.6 billion in the 1990s and is now valued at over Sh14.4 billion, according to industry estimates.
Mr Kithinji said AEA had imported the required storage equipment and is eyeing to set up the facilities at various drop-off points for the new railway line including in Mombasa. He however did not provide costs for the planned services of grain handling by AEA.
“Farming areas like Kitale lack a place where they can store their produce. AEA is creating specialised silos which will make it easy for importers, exporters and farmer to store their grain in special handling equipment in the silos,” he said.
The SGR, whose construction is now entering homestretch, is expected to be commissioned in June.
Kenya Railways has said operations would feature freight and passenger train services, with the passenger operating two types of trains.
The line is expected to significantly cut the journey time between Nairobi and Mombasa, changing the nature of transport between the two cities.
The SGR network will extend to Malaba, first with construction on the Nairobi to Naivasha section, set to commence later this year.
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