14.5 C
Hamburg
Wednesday, June 4, 2025
Home News Difficulties of Kenya' SGR Cargo

Difficulties of Kenya’ SGR Cargo

In Summary

  • The trains’ daily tonnage has increased to over 800 containers, out of the 1,700 that arrive at the port of Mombasa.
  • Truckers, container freight stations (CFSs), and clearing agents continue to count losses, with some logistics companies reported to have resorted to restructuring that has seen thousands of job losses.
  • With the government keen on transporting about 250,000 containers by train by the end of the year, there will certainly be more job losses in the port-related economy.

Ten months after the launch of Kenya’s cargo service on the standard gauge railway line between Mombasa and Nairobi, it has turned out to be a double-edged sword.

In its first nine months, the service earned Kenya Railways more than $16 million, prompting the operator to double the haulage capacity using double-stack wagons to the Nairobi Inland Container Depot (ICD).

Already, the trains’ daily tonnage has increased to over 800 containers, out of the 1,700 that arrive at the port of Mombasa.

The ramping up of the operations has also seen the line ease the government’s payments of the loan to China.

“Since the start of SGR cargo freight operations in January, $16.2 million has been billed, collected and remitted to the SGR escrow account, which is under the custody of Kenya Railways,” said Kenya Ports Authority managing director Daniel Manduku.

The launch of the double-stack wagons, which Kenya Railways says will double the cargo capacity hauled to Nairobi from Mombasa, comes as the Nairobi ICD struggles with congestion. It has since acquired more land as it seeks to expand its capacity.

Read more on The East African.





Latest Posts

ORBCOMM unveils new container visibility tool

ORBCOMM has announced the launch of CrewView, an onboard visibility solution designed to give vessel crews real-time access to data from smart refrigerated and...

SAAM-Enap partnership: Latin America’s first electric tug en route to Chile

Latin America’s first fully electric tugboat has officially set sail from Tuzla, Turkey, on a 45-day journey to Puerto Montt, Chile. From there, it will...

Singapore and France sign enhanced maritime partnership agreement

French Minister for Transport Philippe Tabarot and Singapore’s Acting Minister for Transport and Senior Minister of State for Finance Jeffrey Siow signed an Enhanced...

CMA CGM, DP World Ramp Up Investment Amid Global Trade Turbulence

As global trade fragments under the weight of geopolitical tensions, French shipping group CMA CGM and UAE-based logistics company DP World are positioning themselves...

AD Ports establishes Tbilisi Intermodal Hub in Georgia

AD Ports Group has announced the inauguration of the first phase of Tbilisi Intermodal Hub, Georgia's first modern, bonded container and intermodal terminal, and...
error: Content is protected !!