Transport

Rail firm to ship in more locomotives

LOCO

The locomotives were acquired from General Electric at a cost of $25 million. PHOTO | FILE

Rift Valley Railways (RVR) plans to ship in seven more locomotives by May as it revamps its fleet to boost performance.

The firm has acquired 13 new locomotives since September last year as part of its turnaround programme on railway services in the region.

The locomotives were acquired from General Electric at a cost of $25 million with the support of a $20million asset financing facility from Standard Bank and $5 million from majority shareholder, Qalaa Holding.

The railway operator said it is currently refurbishing old trains from Kenya and Uganda and intends to buy more from South Africa with a wider plan to unveil 34 new trains.

The management said this would help double its cargo capacity and reduce transportation time from 17 days to 10 days across East Africa including transportation from Mombasa to Kampala to seven days.

“We spent over Sh12bn in the turnaround programme and we will continue to recapitalise the business through internally generated profits in an effort to establish the regional railway as an efficient bulk transporter in the region, “said Carlos Andrade who is RVR Group CEO.

“The money has been spent in acquiring new technology to automate the systems, increasing of rolling stock to raise volumes, expanding client base and improving infrastructure to cut speed restrictions,” he added