First 52 export containers of SGR cargo arrive at port

Kenya Railways managing director Atanas Maina. FILE PHOTO | nmg

What you need to know:

  • Kenya Railways managing director Atanas Maina said most of the containers were exports by logistics firm Bolore Africa.

The first consignment of 52 export containers ferried on the standard gauge railway (SGR) arrived at the Mombasa port on Monday.

Kenya Railways managing director Atanas Maina said most of the containers were exports by logistics firm Bolore Africa.

“Bolore has 48 containers loaded with coffee and French beans while the others belong to three companies and contain wood carvings and animal skins,” he told the Business Daily in a telephone interview.

Commercial operations of the freight train service started on Monday last week after six months of testing.

The first train left Mombasa with a full load of 216 containers.

However, the second train was delayed following a lack of enough cargo. The corporation has since announced it had entered into agreements with Kenya Ports Authority (KPA) and Kenya Revenue Authority (KRA) to direct more cargo on the trains.

This would entail changing documentation for Nairobi and upcountry cargo to be destined to Nairobi Inland Container Depot.

Mr Maina said Transport and Infrastructure secretary James Macharia at the weekend approved a three-month promotional tariff that would allow shippers to receive their cargo and containers returned to the port at a flat rate.

“The promotional tariff of $645 (about Sh66,435) and $843 (Sh86,829) for a 20-foot and 40-foot container respectively includes railage and other handling charges by the shippers including the return of empty containers by Kenya Railways to Port Reitz Railway Station or the port,” he said. 

Clearing and forwarding agents, as well as importers, had raised concern that return of containers was not factored in their agreements with Kenya Railways.

The corporation is charging Sh50,000 and Sh70,000 for the 20- and 40-foot containers respectively between Mombasa and Nairobi inland container depot.    

The tariff follows consultations held between Kenya Railways and the KPA, the KRA, Shippers Council of Eastern Africa on behalf of importers and exporters in Kenya and eastern Africa and Kenya Shippers Agents Association representing shipping agents and brokers. 

“The move will also give Kenya Railways, the KPA and KRA an early opportunity to test and improve on the processes at the one-stop border post based at the recently upgraded Inland Container Depot to enhance customer experience during this inaugural period,” added Mr Maina.

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