Hard sell: State taskforce passes verdict on SGR cargo deal

Freight costs associated with handling and storage can push up charges by more than 100 per cent, with owners paying Sh142,000 compared to Sh65,000 via road. [File, Standard]

The Government has admitted that the Standard Gauge Railway (SGR) is a hard sell to businesses, as it costs twice as much to ferry cargo by rail than by road.

The Report by the Joint Technical Committee on the Improvement of Efficiency and Cost-Effectiveness of Transportation of Cargo Using SGR suggests that no transporter will opt for the new rail against road unless the State arm-twists them.