KR clarifies issue of management of Madaraka Express

Kenya Railways Corporation and Africa Star Operation Company have refuted reports that the latter is blocking the review of their contract on running the Madaraka Express passenger and freight services.

The two firms said they are reviewing the contract. “The operations....have been smooth for three years for passengers and two for freight. Since the review of the agreement is provided for in the contract, Kenya Railways and Africa Star agreed to undertake the review to align the contract with the realities of the operations,” KRC acting MD Philip Mainga and Africa Star General Manager Li Jiuping said in a statement.

Speaking at Suswa Inland Container Deport earlier, Mr Mainga said this would lower cost of doing businesses “since it is essentially cheaper and less time-consuming”.

At the same time, Transport Principal Secretary Esther Koimett said the Suswa ICD should be viewed as a long-term investment.

SPUR GROWTH

The depot, which will be launched on Tuesday, is expected to begin operating on December 18.

Ms Koimett dismissed fears that the Phase 2A of the standard gauge railway to Naivasha is a white elephant.

She said work is still in progress with up to 70 per cent complete. “With the favourable conditions the site portends, it is only a matter of time before the envisioned results are realised,” the PS said.

She cited the region’s conditions “which will turn spur developments, including industrial parks as well as tourist sites”.

The Sh6.9 billion Suswa ICD, just a few kilometres from Maai Mahiu SGR terminal, is intended to serve freight destined for Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo via the port of Mombasa.

“The ICD will essentially serve cargo going west of Nairobi. Our regional partners are upbeat about the depot as it perfectly fits in the government’s infrastructure plan,” Ms Koimett said.

EASE OF MOVEMENT

According to the PS, goods from Mombasa conveyed by the railway would be offloaded at the ICD station for onward transmission, “which will ease further conveyance to subsequent destinations”.

“The fundamental benefit is that customers will no longer need to go to Mombasa port or the Nairobi ICD, but fetch them from Suswa,” she added.