Higher tariffs on cargo transport by the standard gauge railway are likely to have a negative impact on repayment of Chinese loan as road carriage now becomes cheaper than use of train following implementation of new rates.
Logistics firms, which had mainly been reduced to offering last mile connections, are worried that SGR cargo business will now become uncompetitive with the new rates, which will cut the volume of cargo transported by railway in favour of road, hence impacting on revenue.
