Transport

Kenya Railways to increase SGR freight charges in July

shgr

The State has been wooing shippers to use SGR for their cargo. FILE PHOTO | NMG

The Kenya Railways Corporation (KRC) is set to review the promotional freight charges on the standard gauge rail (SGR) upwards in the next two months as the State continues to woo shippers to embrace the multi-billion shilling investment.

Kenya Railways business, commercial and operations team leader James Siele told Shipping and Logistics that the rates will be adjusted again in July once the promotional tariff which was introduced in January comes to an end next month.

“We are working together with the Kenya Shippers Council and cargo owners to see how best we can adjust these rates. We cannot talk about the margins at this moment but all we know is that it will be in the best interest of the market,” said Mr Siele.

Madaraka Express freight service customers have been enjoying the promotional tariff which was introduced in January.

The tariff was supposed to end on April 4, but towards the end of March, KRC extended it again until June 30.

This has seen SGR freighters pay a flat fee of Sh35,000 for a 20-foot container and Sh40,000 for a 40-foot container from Mombasa to Embakasi Inland Container Depot (ICD).

The Kenya Railways has also been charging Sh25,000 to transport a 20-foot container and Sh30,000 for a 40-foot container from ICD to Mombasa.

The rates, however, do not include the cost of handling cargo and returning empty containers.

“What we want is to have a sustained business so that we do not lose some of the gains we have made in as far as  freight business is concerned in this country,” said Mr Siele.

Plans by KRC to review special rates for SGR cargo come barely a few days after the Kenya Ports Authority (KPA) reduced the free storage period for containers at the Inland Container Depot in Embakasi, from 11 days to four days, in a move aimed at clearing a backlog of about 1,700 containers which were lying uncollected at the facility.

The move also comes in the midst of a row with freighters who have defied a government directive to transport their imported cargo through the standard gauge rail.