Stakeholders have blamed efficiency hiccups and lack of a clear agreement between the SGR operator and cargo owners for cargo drought that has hit the SGR goods haulage, forcing Kenya Railways to delay the daily service.
The government and players in the shipping and logistics business will hold a crisis meeting tomorrow in Nairobi to try to address the rocky start of the cargo train on the standard gauge railway.
Stakeholders have blamed efficiency hiccups and lack of a clear agreement between the SGR operator and cargo owners for cargo drought that has hit the SGR goods haulage, forcing Kenya Railways to delay the daily service.
“The specific objectives of the meeting will be to evaluate and find mechanisms of maximising on the potential of the Standard Gauge Railway as an efficient mode of transport for movement of cargo,” said Kenya International Freight and Warehousing Association (Kifwa) chairman William Ojonyo.
Experts say the performance of the rail freight sector needs to be stimulated by improving customer service to boost uptake of the service. Shippers also reckon the cargo shortage is an artificial one caused by unclear operational steps.
“SGR freight uptake has experienced slow uptake due to perceived hitches in value chain management. Low uptake means more cargo still moving through road more than six months since launch of Madaraka Express. This is he challenge we hope to address by speaking in one voice,” said Mr Ojonyo on Tuesday when announcing details of the meeting.
Representatives from Kenya Railways Corporation, Kenya Revenue Authority (KRA) and Kenya Ports Authority (KPA) are expected at the meeting.
After the expansion of the Mombasa port, it was anticipated that growth in volume of cargo would automatically boost hauling.
Kenya Railways assured on the elimination of the hiccups.
“Shippers, Kenya Railways, Kenya Ports Authority and Kenya Revenue Authority are involved. We expect this to pick significantly in the coming months now that ICD expansion is complete. We can run up to four trains for a start but have capacity for up to 13 trains,” said KRC CEO Atanas Maina had said.
Clearing and forwarding agents have noted the success of the commercial operations will be determined by efficiency of loading cargo wagons from the port for the Embakasi ICD.
President Uhuru Kenyatta’s administration is banking on the railway to move 40 per cent of cargo handled by Mombasa port from roads to the SGR as it relies on the modern train service to reduce the damage caused by trucks to highways and reduce accidents.
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