SGR cargo service will boost businesses

It’s all very well for cargo trains to begin test runs from Mombasa to Nairobi on the Standard Gauge Railway (SGR) in the coming weeks in anticipation that freight traffic will be introduced on this new line shortly after.

However, for the SGR to bring a better return on investment, the introduction of the cargo train must be done quickly. It cost a pretty penny — Sh327 billion to be exact — to construct the first phase from Mombasa to Nairobi and purchase the rolling stock, but ever since its launch in May, Kenya Railways has only been running a passenger service.

Entrepreneurs are looking forward to the introduction of the cargo service, which will significantly cut the costs of transporting goods from the Coast to the hinterland.

According to the Transport Ministry, cargo owners currently pay Sh85,000 to ferry a 20-foot container by road. This is expected to come down considerably to Sh50,000 on the SGR freight service.

This will be a significant reduction in operational costs for a business. However, because the SGR terminates in Nairobi, most entrepreneurs who ferry goods to neighbouring countries are not benefiting much from the new line. And this is why the contractor must fast–track the construction of the second phase of the SGR to Naivasha and the third phase to Kisumu and the border post of Malaba. Let’s harness the full potential of this railway.