Cement firms defy rows in rail plan to sign deals

Several cement firms have shrugged off legal tussles stalking the standard gauge railway project to sign material supply deals worth millions of shillings.

Bamburi Cement and Athi River Mining have already signed such agreements with others expected to follow suit soon.

“We are also negotiating the cement supply contract with Savannah Cement, East African Portland Cement Company and other cement manufacturers,” said He Yongjian, procurement manager of the 427-kilometre Nairobi-Mombasa SGR project.

The agreements will see the cement industry players supply nearly all the building material needed for the project, becoming the early beneficiaries of a directive that supplies for the project be sourced locally.

ARM commercial director Bipin Bhatia said they are now upgrading their plants so that the cement produced for supply is up to standards specified for the project.

“We have to make minor adjustments on some lines at our plants to adhere to the quality that will be needed for the project,” Mr Bhatia said.
“The world cement qualities are almost the same and what we need to do is make some minor changes.”

China Road and Bridge, the project’s contractor, has also signed deals with oil and explosives suppliers.

The contractor is also in talks with steel manufacturers and expects to soon agree on the standards that the manufacturers will need to conform to before signing agreements for the supply of steel.

Other materials expected to be locally sourced include sand, electric cables, logistics services, security services, haulage equipment and vehicles.

The State pledged to reserve supply of raw materials and services worth at least Sh130 billion – or 40 per cent of the project’s value – for local entities.