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Posta taps SGR to cut cost of ferrying parcels

KRC is set to launch SGR freight train operations in January 2017. FILE PHOTO | NMG
KRC is set to launch SGR freight train operations in January 2017. FILE PHOTO | NMG 

Postal Corporation of Kenya (PCK) will start transporting its parcels and mail via the standard gauge railway (SGR) next January, cutting its transportation costs by half.

PCK general manager for mail Eliud Lell told the Business Daily in Nairobi that PCK will spend about Sh40,000 per day to transport the parcels and mail.

Currently, the ailing State corporation which reported a Sh1.5 billion loss in the financial year ended June has been spending about Sh80,000 per day to transport parcels via road between Nairobi and Mombasa.

“The cost of transporting parcels via train is likely to reduce by half,” he said. Mr Lell said discussions with the Kenya Railways Corporation (KRC) on the mode of billing were at an advanced stage.

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