KENYA SEEKS ADVISOR FOR NEW LINE
Posted on 06 November 2009 by Railways Africa Editor
Kenya Railways Corporation is looking for a technical advisor to assist in the building of the proposed new railway from Mombasa to Malaba on the Ugandan border. A tender being invited internationally lists the provision of preliminary design services and the development of an appropriate financing, construction and operating model.
The government set aside Sh3 billion (about $US39m) in this year’s budget for the preliminary design of a high-capacity, 1,435mm gauge line which would be extended eventually to Kampala. It is hoped to have the railway completed and working by 2016.
Referring to criticism that has been levelled at the scheme, KRC managing director Nduva Muli says one has to look at the wider benefits to the region. The estimated cost of $3 billion would in the long run reduce the cost of transport and doing business, he says, pointing out that the cost of transport and logistics in Kenya and the region accounts for about 45% of the price of goods and services compared to 15% in developed countries.
”With such high costs, Kenya and the region will remain an uncompetitive investment and business destination in addition to high costs of living for the citizens,” Nduva was quoted saying. The road system, which is more expensive, accounts for 94% of freight traffic on the northern corridor transport artery that serves Uganda, Northern Tanzania, Rwanda, Burundi, Eastern DRC, southern Sudan and
Ethiopia.
The port of Mombasa, the managing director said, is projected to handle 30 million tonnes of cargo by 2030 compared to 17 million currently. “If the rail capacity is not increased to match this growth, the levels of congestion on our roads are beyond imagination,” he said.
Related posts:
One Response to “KENYA SEEKS ADVISOR FOR NEW LINE”