asvptx
JF-Expert Member
- Jun 26, 2018
- 1,940
- 1,014
I don't quite seem to be getting your point of view. But l will try explaining regardless.Transit cargo covers a greater distance and is more profitable.This transit cargo is owned by congolese and ugandan businessmen for which we are subsidizing with borrowed money,previously they were paying the bill and never asked for any subsidy even from their own governments . The max capacity of SGR is 8m tons per year which is equvalent to all the cargo from mombasa bound for outside kenya. For SGR to recoup its investment, it must concentrate on the profitable transit cargo.So the question is- Who then will carry the less profitable kenya bound cargo? will it not be back on the roads destroying the roads? negating the very essence of building SGR?
Subsidising attracts more players, thus more revenue. Doesn't matter the nationality.
On what basis did you get the maximum capacity of SGR though? Remember, more freight trains will be put to work, and the cargo trains will also do double stacking of containers thus transporting more containers than before. Put this with regards that Mombasa port (2018) annual tonnage is about 26million
Who will carry Kenya bound cargo?? What do you mean? That's the main objective of these trains. Kenyan cargo will be left at the NBO ICD, (more will be transported to the Naivasha dry port once completed) . In fact with this subsidy, business guys will prefer the SGR to the trailers and other logistic players.