New dawn beckons for rail transport

By Kenneth Kwama

After several years of false starts, the country’s pioneer rail company Kenya Railways (KR) seems to have found the right formula, which if successful, will help restore sanity to public transportation and facilitate hassle-free transport for thousands of commuters who live and work in Nairobi or its environs.

The planned dramatic improvements to rail travel is developed around what is euphemistically referred to as "Park and Ride and Kiss and Ride"-concept, which envisages that commuters living around towns like Thika will drive or catch matatu to Thika Railway station and ride on the train to the city and do the vice versa on return.

"The most critical and valuable aspect of this project is road decongestion. It will transport about 100,000 passengers daily, which is equivalent to 7,500 Nissan ‘Matatu’ movements per day. This will have the effect of decongesting the roads," says KR’s MD Nduva Muli.

KR’s partners in the project, InfraCo, will invest approximately $400,000 (about Sh30 million) for the feasibility study. The private partner is based in London and is fully owned by Private Infrastructure Development Group Trust (PIDG).

The new initiative is expected to gobble up between Sh10-12 billion. KR and InfraCo will form a joint venture company, that will attract both lenders and investors to provide funding for implementation. InfraCo is then expected to recover its initial expenditure from the investor.

Besides its ability to decongest roads and make public transport more predictable and reliable, the initiative also has the potential to destroy thousands of careers, especially of people employed in the public transport sector like drivers and touts.

It could also wipe out hundreds of millions worth of investments, mainly in the matatu sector, where new investors have taken to buying bigger buses, mainly from General Motors (GM)-East Africa, to maximise on economies of scale.

Change of focus needed

GM has been relying on the resurgent transport sector and new demand for bigger transport vehicles to drive its sales, which have slumped by about 10 per cent in the past four months. Currently, GM is selling an average of 240 units a month-half of which are mini-buses, while the rest comprise cargo transport vehicles and up-country buses.

To stay afloat, companies like GM will therefore have to change focus, or come up with new business models because the new project will definitely make the market less navigable for it.

The seriousness of the project is underpinned by the list of stakeholders in the holding company, PIDG, which include the World Bank and a number of Europe-based governments. The governments are represented by various foreign development agencies, and include the UK, Switzerland, Netherlands and Ireland and the Austrian Development Agency (ADA).

Last week, KR InfraCo signed the joint development agreement to upgrade and expand commuter rail transport within Nairobi. The initiative will also see several improvements within the city’s railway system, including introduction of new trains and coaches referred to as Diesel Electric Multiple Units (Demus).

The new trains will be purchased, owned, operated and maintained by the procured investor/operator, who will also be required to source for them competitively, while ensuring that they meet the specifications set by KR.

Under the new deal, the existing locomotives hauled trains will be replaced by the Demus, which have a higher loading capacity and operating speeds.

Initially, the project is expected to generate at least Sh7.3 million daily from the projected 100,000 passengers expected to use the new service, compared to the current 19,000.

Safer, faster and reliable

The project will provide affordable, comfortable, reliable and safe means of transport from the suburbs to the city. The economic effect of this on those who will access the services will be significant.

"Imagine spending Sh120 per day from Thika for a comfortable stress free ride to the city, compared to spending Sh500 on fuel for your car plus Sh140 for parking while bypassing the stress of traffic jam on Thika road?" Poses Muli. In addition to the removal of at least 7,500 matatu movements from the roads every day, Muli says there’s reason to expect less traffic on the roads after the implementation, meaning that people who want to use their personal vehicles will spend less time and money travelling within the city and its environs. "Generally, it is good because it will enable us increase our revenue, and ensure that commuter services is profitable. It will also generate a wide positive social and economic spin-off," says Muli. Despite the expected windfall for KR, officials of the Matatu Owners Welfare Association (MOWA) are said to be wary of the project. One of the organisation’s officials who requested not to be named because he is not authorised to speak on its behalf said the new initiative could be dangerous.

"It could be good for the commuters, but it will drive several youth employed in the matatu industry out of work, and destroy several businesses. Ultimately, even petrol pump attendants will be laid off, because consumption of petrol will reduce," he claimed.

"This is dangerous because these people will end up desperate and jobless and could resort to crime as a means of earning a living. The project is good, but let us also prepare for the consequences if the Government does not come up with an effective means to deal with the consequences," warns the official.

The beneficiaries

Key highlights of the project include the development of modern stations and halts between Nairobi, Limuru, Lukenya and Thika. Residents of Nairobi’s Eastlands will also benefit with stations and halts planned at Makadara, Dandora and Embakasi.

The modernisation and expansion of the services will see KR extend its services to Thika, Lukenya, Kitengela, Limuru, JKIA passenger terminal (a new branch line will be built from Embakasi Station to JKIA) and Embakasi Village. The total route length after expansion will be 170 kilometres compared to 61 kilometres covered by the present services.

"The initiative will also strengthen the tracks by replacing the present light fittings with heavier rails and concrete sleepers. We will also introduce a modern method of train control referred to as Automatic Train Control Systems in order to enhance the safety and quality of services," says Muli. The upgraded commuter services are expected to be fully operational by 2012.