Kenya Railways lures cargo users with discounted rate
Counties
By
Macharia Kamau
| Jul 10, 2018
Kenya Railways has launched another attempt to have more cargo owners use the new line to move freight between Mombasa and Nairobi.
The corporation yesterday announced a discounted rate for bulk cargo on the Standard Gauge Railway (SGR). Owners will pay 50 per cent of the existing rates.
The offer will run till the end of this year. The Kenya Railways Corporation (KRC) has also extended a previous promotional tariff for ferrying standardised cargo from Mombasa to Nairobi by six months.
This is the second extension - from March to June 30. The two promotional tariffs will run until the end of the year.
This is the latest in a raft of measures aimed at attracting more businesses to use the freight service. “The promotional tariff, which was effected July 1, will see owners of bulk cargo pay Sh3.5 per tonne per kilometre, 50 per cent of the approved tariff,” said KR in a statement yesterday.
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The lower tariffs for bulk cargo owners are in addition to other discounted rates that KRC has offered firms that use the Madaraka Express Freight service.
Increasing traffic
The lower rates were instituted after the launch of the service and were aimed at increasing traffic on the SGR trains, which suffered low volumes. Other trains that were planned after the launch service had to be cancelled.
KRC recently reported that there had been an increase in the use of the service, making it necessary to increase the number of daily cargo trains to seven this month.
Cargo owners currently pay Sh25,000 per 20-foot container and Sh35,000 for a 40-foot container between Mombasa and Nairobi, which is 50 per cent of the approved tariff.
Under the approved tariff, a 20-foot container attracts Sh50,000 while a 40 foot container is charged Sh70,000.
It is also in comparison to trucks on roads that can cost anything between Sh80,000 and Sh100,000.
“Similar to the promotional tariff for standard containerised cargo, which stands at 25,000 for a 20-foot container and 30,000 for a 40-foot container, the bulk cargo promotional tariff will run up to December 31, 2018,” said KRC yesterday.
Other measures to increase the use of the SGR freight service include the March 7 directive by Head of Public Service Joseph Kinyua requiring all State agencies to use the service for all imports and exports. The directive also covered cargo imported by firms contracted by the Government entities to undertake projects.
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