Transporters and traders have urged the government to reduce the cost of ferrying cargo from the Port of Mombasa using the standard gauge railway (SGR).
They proposed lowering of SGR freight rates from Sh50,000 and Sh70,000 for the 20 and 40-foot container respectively to Sh35,000 for both containers to be transported from Mombasa to Nairobi or Naivasha.
Transporters and traders have urged the government to reduce the cost of ferrying cargo from the Port of Mombasa using the standard gauge railway (SGR).
They proposed lowering of SGR freight rates from Sh50,000 and Sh70,000 for the 20 and 40-foot container respectively to Sh35,000 for both containers to be transported from Mombasa to Nairobi or Naivasha.
The players led by Kenya Transporters Association (KTA), Kenya Association of Manufacturers (KAM), Shippers Council of Eastern Africa (SCEA), the Kenya Ships Agency Association, Empty Containers Association, Kenya Ships Agents Association, East Africa Tea Trade Association, Kenya International Freight and Warehousing Association and the Kenya Private Sector Alliance, said SGR must be mad competitive to enable traders to use it.
They further lamented over inefficiencies at the port that are hurting businesses.
The cargo owners said there is need for reliability and competitive prices to ferry their goods via SGR, and called on the government to support private players.
"We need our cargo promptly and reliably. The Kenya Railways Corporation rates are still high, thus we are asking them to engage the private sector to get a balance. Let's stop this rivalry, we need each other to end the current port congestion whether real or artificial, which is a pain," said SCEA head of advocacy Ogayo Ogambi.
Auni Bhaiji, Bollore Transport and Logistics regional director development and external affairs East Africa, said cargo owners should be allowed to decide the mode of transport they want move their cargo.
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