Cost comparison SGR Kenya vs SGR Tanzania

Geza Ulole

Geza Ulole

JF-Expert Member
Joined
Oct 31, 2009
Messages
18,420
Points
2,000
Geza Ulole

Geza Ulole

JF-Expert Member
Joined Oct 31, 2009
18,420 2,000
Tanzania secures $7.6 billion financing deal from Chinese lender to build new railway

President John Magufuli with China Exim Bank president Liu Liang after holding talks at Chamwino State Lodge in Dodoma this week. PHOTO | COURTESY

In Summary

  • Dar es Salaam is positioning itself as a regional hub, upgrading its port to attract more business from its neighbouring landlocked countries.
  • The EAC railways master plan incorporates the standard gauge railway’s Northern and Central Corridors, which are both commercially viable for landlocked countries in the region as they give them strategic access to the ports of Mombasa and Dar es Salaam.
  • The Northern Corridor Integration Projects championed by Rwanda, Kenya and Uganda spearheaded the establishment of a railway link from Mombasa to Kigali.
  • In June 2013, a Northern Corridor Integration Projects Heads of State Summit held in Kampala put in place mechanisms for fast-tracking the development of the SGR.


Tanzania has secured a $7.6 billion loan from China’s Export-Import Bank (Exim) for the construction of a railway line that will link it with Burundi, Rwanda and Democratic Republic of Congo.

President John Magufuli secured the concessional loan after meeting with the Exim Bank’s president Liu Liang.

President Magufuli, while announcing the funding, alluded to a preferential deal without providing details.

Oil and gas discoveries have turned Tanzania into an exploration hotspot, but the country’s transport infrastructure has suffered from decades of under investment. The country is also positioning itself as a regional hub, upgrading its port to attract more business from its regional landlocked neighbours.

According to Mr Liu, China Exim Bank will offer Tanzania technical support.

READ: China Exim sets terms for financing Uganda’s SGR

ALSO READ: Rwanda looks to Tanzania for rail transport as Uganda falters on SGR

Last year, Tanzania announced that it had awarded rail contracts to a consortium of Chinese firms led by China Railway Materials (CRM), which included the standard gauge rail project.

The Exim Bank is also financing a $1.2 billion, 532km natural gas pipeline in Tanzania.

On Wednesday last week, Finance and Planning Minister Dr Philip Mpango after a meeting with Dr Alberic Kacou, African Development Bank vice-president for human resources and corporate services, announced that Tanzania had secured a further $200 million loan from the AfDB to finance transport infrastructure projects.

“We will use some of this funds towards the construction of the SGR project to transform the country’s infrastructure,” Dr Mpango said.

In an interview with Bloomberg, Gerson Msigwa, a spokesman for Tanzania’s presidency, said the construction will start by July next year. Before then, Tanzania and Exim Bank China will be expected to have finalise technical issues on the contract and sign the financing deal for the 2,190km project.

Tanzania Transport Minister Samuel Sitta said the SGR will have a main line that will connect the port city of Dar es Salaam to Rwanda and Burundi, with additional branch lines running within the country.

“We expect to have two offshoots: One of them to Mwanza, which will open up the lakeside port city and link it with Uganda, while the second one will link to the coal, iron ore and soda ash mining areas in the south. Through this, we expect an increase in cargo on this route,” Mr Sitta said, adding that will be at an additional cost of $6.6 billion.

Already, Tanzania has signed contracts with China Railway No 2 Engineering Group to build a rail link between the southern port of Mtwara, which is rich in coal, iron ore and natural gas. The contract will see China Railway No 2 Engineering Group provide 10 per cent of the funding with the rest provided by the government.

Kenya is also constructing a $3.27 billion 609km new standard gauge railway line between Mombasa and Nairobi to boost the movement of cargo from the port.

However, queries have been raised over the economic viability of SGR, after key landlocked states indicated their intention to connect to the Indian Ocean through Tanzania.


The issue of cost is also bound to arise now that Tanzania’s SGR is four times longer than Kenya’s but only two times as expensive.

In a previous interview with The EastAfrican, Kenya Railways managing director Atanas Maina said that the cost of the Kenyan SGR was high because of the design adopted, which will see the train maintain an average speed of 80 kilometres irrespective of the terrain.

“We have built bridges, and raised the track in areas where we would have had corners to achieve the average speed we expect the wagons to travel at. This has increased the costs immensely as compared with the neighbouring Ethiopia and Tanzania SGER designs that haven’t taken this into account,” Mr Maina said.

Recently, a confidential World Bank report cast doubt on the region’s push for the SGR projects, saying they would only be viable with increases in cargo of between 20 tonnes and 55 million tonnes per year.

The report done by the Africa transport unit at the World Bank titled The Economics of Rail Gauge in the East Africa Community showed that the volumes of the forecasts undertaken for the EAC railway master plan and central line in Tanzania, are unattainable over the medium to longer term.

“Based on these assumptions, there is no economic or financial case for standard gauge in the EAC area at this time. A refurbished meter gauge network would appear to be the most appropriate option in economic and financial terms, and could easily accommodate forecast traffic up to 2030, with lower investment requirements,” the report concludes.

The World Bank team highlighted the rehabilitation of the existing railway network as the best alternative, which would allow a phased approach to the regions development, consistent with current and projected demand and the financing envelope available.

The SGR alternative, which the regional governments chose, involves the construction of a standard gauge railway on a new right of way, an option the World Bank team said required additional investment in land acquisition and structures, and new right-of-way construction.

“This alternative predicates axle loads in the order of 25 tons per axles and a maximum operating speed of up to 120 km per hour. Again, based on these assumptions, the estimated maximum carrying capacity of the current network would exceed 60 million tonnes per year. The estimated investment cost per km will be $ 3.25 million,” the report said.

From the estimates provided, the Tanzanian new railway line will cost an average of $3.4 million per kilometre.

MY TAKE

It is time now to look at the cost of the two rails as we know cost of construction is very important for prospect of any infrastructure! i welcome bright minds to contribute and not some propaganda in here!


nomasana, sam999, NairobiWalker, hbuyosh, msemakweli, simplemind, Kimweri, Bulldog, MK254, Kafrican, Ngongo, Ab_Titchaz, mtanganyika mpya, JokaKuu, Ngongo, Askari Kanzu, Dhuks, Yule-Msee, waltham, Mzee, mombasite gabriel, Juakali1980, Boda254, mwaswast, MwendaOmo, Iconoclastes, oneflash, Kambalanick, 1 Africa, saadeque, burukenge, nyangau mkenya, Teen-Upperhill Nairobi, kadoda11
 
Kafrican

Kafrican

JF-Expert Member
Joined
Jan 26, 2015
Messages
4,819
Points
2,000
Kafrican

Kafrican

JF-Expert Member
Joined Jan 26, 2015
4,819 2,000
Crane iko(wanaitaa TELESCOPIC BOOM RECOVERY CRANE) and kwa krc's website wanasema they've TAKEN DELIVERY of lakini haina rangi za Kenya railway hence my doubts. I too think iya wa china..Thanks for the answer.
The first imported crane belongs to the Operator as per this article...

During rescue activity, the Rescue Crane works in conjunction with three rescue coaches, which provide amenities for staff as well as housing for the tools used during rescue. In order to get to the site, the Crane is hauled by a towing locomotive moving at speeds of up to 120km/h. During the operation, the crane can self-propel up to a speed of 8km/h while on the worksite.

China Road and Bridge Corporation (CRBC); the EPC contractor for the Mombasa Nairobi Standard Gauge Railway line is required to supply two Recovery Cranes as per their contractual obligations. The Crane will be subjected to dynamic and static tests as part of the inspection and acceptance process. The second crane is expected to arrive in December,


But another crane + other reovery wagons that house generator and other recovery tolls will belong to KRC,
 
K

Kifaru_07

Member
Joined
Dec 10, 2018
Messages
65
Points
125
K

Kifaru_07

Member
Joined Dec 10, 2018
65 125
operating a Railway is not rocket science
Its not like pushing a handcart either, where you can pick a pedestrian and tell him drive this train with 1000 lives on board.
If you think its not hard then you have little knowledge of train operations. Do you know why wagon couplings are loosely spaced and dont give a tight hold between them? How far back does a 1km long train need to start applying brakes to stop?
 
EZZ CHEZZ

EZZ CHEZZ

Senior Member
Joined
Apr 10, 2011
Messages
117
Points
225
EZZ CHEZZ

EZZ CHEZZ

Senior Member
Joined Apr 10, 2011
117 225
This should serve as a lesson to our local East African contractors when executing public projects. In the modern world, it does'nt mean much if you do public things silently as an institution.

The public needs to know what's going on and see how to embrace it. A lot of stakeholders out there could benefit a lot. Ranging from, vendors, scholars, potential workers, business people, investors, etc
 
Kafrican

Kafrican

JF-Expert Member
Joined
Jan 26, 2015
Messages
4,819
Points
2,000
Kafrican

Kafrican

JF-Expert Member
Joined Jan 26, 2015
4,819 2,000
operating a Railway is not rocket science
Actually to be a train driver you must have an advaned diploma or a dregree in engineering fields like electrical or mechanical... If a train gets stuck in the middle of nowhere, it all falls back on the driver to diagnose and fix the issue quickly
 
Kafrican

Kafrican

JF-Expert Member
Joined
Jan 26, 2015
Messages
4,819
Points
2,000
Kafrican

Kafrican

JF-Expert Member
Joined Jan 26, 2015
4,819 2,000
Baada ya Assistance Drivers wa kwanza 15 ku graduate juzi na kua Senior drivers ambao wanapeleka sgr bila usaidizi, mwezi uliopita, Wanafunzi wapia wa assistand drivers wameanza mafunzo.












 
Kafrican

Kafrican

JF-Expert Member
Joined
Jan 26, 2015
Messages
4,819
Points
2,000
Kafrican

Kafrican

JF-Expert Member
Joined Jan 26, 2015
4,819 2,000
Baada ya majumba kubomolewa, Final contruction ng'ong area

 
Bantugbro

Bantugbro

JF-Expert Member
Joined
Feb 22, 2009
Messages
3,299
Points
2,000
Bantugbro

Bantugbro

JF-Expert Member
Joined Feb 22, 2009
3,299 2,000
Recently visited the Railway museum at York to familiarise with the past and the current trends....

img_20180328_175016-jpg.1154883
img_20180328_174909-jpg.1154885


You won't notice it at max speed but the whoosh....this was Gautrain from OR Tambo Airpot to Pretoria


Mkaishia kutelekeza..
Wee subiri invitation letter ya ufunguzi wa gogo la umeme uje uone tofauti na hiyo ya Kungfu:)
 
komora096

komora096

JF-Expert Member
Joined
Sep 26, 2018
Messages
3,547
Points
2,000
komora096

komora096

JF-Expert Member
Joined Sep 26, 2018
3,547 2,000
Wacha weee..naona umepiga koti la ki van dame
Recently visited the Railway museum at York to familiarise with the past and the current trends....

View attachment 1154883View attachment 1154885

You won't notice it at max speed but the whoosh....this was Gautrain from OR Tambo Airpot to Pretoria



Wee subiri invitation letter ya ufunguzi wa gogo la umeme uje uone tofauti na hiyo ya Kungfu:)
 

Forum statistics

Threads 1,316,463
Members 505,652
Posts 31,891,271
Top