Cargo importers face costly delays on damaged wagons

Nairobi ICD. FILE PHOTO | NMG

What you need to know:

  • The damage to the 550 wagons was caused by six giant cranes installed at the facility at a cost of Sh1.2 billion.
  • The damage caused serious shortage of wagons which forced Kenya Railway Corporation (KRC) to cut by more than a half the number of Standard Gauge Railway (SGR) freight trains in the past two months, resulting in delays in delivering cargo and congestion at the port.
  • More than 3,000 containers have remained uncollected as Kenya Ports Authority (KPA) and KRC work out on urgent measures to contain the situation.

Traders and importers have been facing delay in delivery of cargo attributable to damaged wagons at the port of Mombasa.

The damage to the 550 wagons was caused by six giant cranes installed at the facility at a cost of Sh1.2 billion.

The damage caused serious shortage of wagons which forced Kenya Railway Corporation (KRC) to cut by more than a half the number of Standard Gauge Railway (SGR) freight trains in the past two months, resulting in delays in delivering cargo and congestion at the port.

More than 3,000 containers have remained uncollected as Kenya Ports Authority (KPA) and KRC work out on urgent measures to contain the situation.

The number of trains operating daily have been reduced to eight from an average of 12.

Following the damage, the SGR is not only facing longer cargo haulage time, but also a hit on its revenues.

The rail-mounted cranes at Port Reitz were bought by the China Road and Bridge Corporation as part of the SGR operations and maintenance contract to handle cargo on the Mombasa-Nairobi SGR.

However, according to sources at the port, the massive equipment continues to malfunction occasioning losses to both KPA and KRC.

Different traders who imported their cargo through Bill of Lading (TBL) are now stranded as they cannot collect their cargo on time at their destinations since they are still lying at the port of Mombasa.

Due to promotional tariffs offered by KRC, a number of importers were encouraged to use TBL model which names either Nairobi Inland Container Depot or Naivasha as the final destination, where importers can pick the cargo and drop the empty containers and they cannot collect at Port of Mombasa.

Shippers Council of Eastern Africa Director-Gilbert Lagat confirmed delays in railage of cargo.

"This is a problem we have been facing especially those who do TBL. The matter has been marked urgent and we hope to see improvement in the next few weeks," said Mr Lagat.

And amid the delays, an increasing number of traders using SGR are now considering reverting to use of trucks if the problem persists.

KPA head of corporate Bernard Osero confirmed damage but added that the problem has been partly resolved after the authority paid Sh15 million to KRC to repair damaged wagons. 

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