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KPA demands Sh930m from Kenya Railways

By Geoffrey Mosoku | Published Fri, July 13th 2018 at 00:00, Updated July 12th 2018 at 23:16 GMT +3
Authority wants Kenya Railways to pay for its equipment and labour used to load goods on SGR freight trains. [File, Standard]

Kenya Ports Authority (KPA) is demanding more than Sh930 million for its labour and equipment used to load goods on Standard Gauge Railway (SGR) freight trains.

Former KPA boss Catherine Mturi-Wairi wrote to Kenya Railways Managing Director Atanas Maina demanding Sh930,520,000 incurred between January to March. “The authority has supported the SGR project in various ways, from the construction stage of port relief lines to the launch of Madaraka commercial freight trains. KPA also reviewed its tariffs to encourage customers to use SGR,” says the letter dated May 2.

It adds: “The purpose of this letter is to request you to remit Sh930,520,000, being the charge of hire of labour and equipment from January 2018 to March 2018.”

Mrs Wairi was suspended three weeks after the letter, but later resigned even after the High Court reinstated her.

In February, KPA lowered container handling charges in a push by the Government to improve uptake of cargo through the SGR services.

KPA announced that it had slashed container handling charges at the Inland Container Depot at Embakasi in Nairobi by almost a third. 

In a notice published in the local dailies, the authority said it had reduced handling fees for a 20-foot local container at the Inland Container Depot at Embakasi to Sh8,160 from the previous Sh10,506.

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The move was aimed at promoting the use of the depot by clients who wish to nominate it as a point of cargo delivery.

Handling charges for a 40-feet container in transit to another country, on the other hand, was slashed from $125 (Sh12,598) to $90 (Sh9,070).

In April, KPA noted the SGR mode of transport continued to gain popularity at the Port of Mombasa after a total 2,917 TEUs were ferried via rail from the port.

By April 18, the yard container had 20,015 TEUs; 4,929 TEUs were ready for collection, 6,012 TEUs were awaiting pick-up order and 4,017 TEUs were empty.

At least some 1,307 TEUs were exports, nominated and unnominated, while 2,772 TEUs were transshipment containers. 

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