FEATURED STORY

Cargo handlers protest forced SGR use

Share
An SGR cargo train. Billions of shillings were gained irregularly by corrupt politicians and CSs in several scandals in the country. www.businesstoday.co.ke
An SGR cargo train. Billions of shillings were gained irregularly by corrupt politicians and CSs in several scandals in the country. [Photo/KR]
Share

The government should not block the transportation of cargo by road as it pushes for the Standard Gauge Railway (SGR), the Kenya Shippers Council (KSC) has said.

Chief of Staff Joseph Kinyua issued a circular on March 7 requiring all government departments and agencies to use the SGR to move cargo.

While giving his views o the order, KSC Chairman Gilbert Langat began by noting that the government is one of the biggest cargo movers as it handles about 40 per cent of the goods through through parastatals.

“There is a government clearing house which is a department under Treasury but its capacity has not been sufficient enough. That is why [transportation] was opened up to private cargo handlers,” Langat told The Star on Tuesday.

But he added: “We receive an approximate 3,000 containerised cargo per day. The government can only handle around 15-16 per cent of the cargo, which translates to 324.”

Langat further said the SGR should compliment other modes of transport instead of competing with them.

“The government should realise there are major users of the port and ensure efficiency,” he said.

Langat gave his views on the directive alongside Willian Ojonyo, who is Kenya International Freight and Warehousing Association (Kifwa) chairman.

Ojonyo said the order may be good music to Kenya Railways but may not have any legal backing.

He said cargo owners (consignees) will decide how best cargo will be transported and that surplus cargo will be transported by alternative means.

The official added: “The only reason the SGR is not popular is because we have chosen the narrow route of avoiding responsibility as cargo intervenors. This is along the logistics chain which includes Kenya Ports Authority, Kenya Revenue Authority and others. The only way to ensure cargo is atop the wagon is by ensuring efficiency by all parties.”

But the Kifwa boss said the new railway must be appreciated and supported as it is a major investment.

He said it is ” … especially bearing in mind that in multi-modal transport, rail is the second cheapest after sea which should make it the preferred mode of transport against road and air.”

Dock Workers Union Secretary General Simeon Sang said the issue was sensitive so stakeholders should come up with a common stand.

Sang was also of the view that the private sector should be allowed to choose the best mode of transport.

In the circular, Kinyua also instructed that cargo moving between Mombasa and Nairobi by any other means including road, shall require written consent.

Early in February, KPA announced that 671 TEU containers were delivered upcountry by rail, an increase of 233.

READ: Trump fires Secretary of State after Kenyan trip

Two weeks ago, KPA slashed container handling charges for a 20-foot local container at the inland container depot (ICD) in Embakasi to Sh8,160 ($80), from Sh10,506 ($103), in order to boost the uptake of cargo freight on the SGR.

With the directive, all equipment and materials for big public infrastructure projects will be expected to be transported on the SGR.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow Us

Related Articles
Data protection
FEATURED STORY

Why Protecting Your Data is Key in Kenya’s Digital Era

Data protection and privacy in Kenya is enshrined in the Constitution, under...

Computer
FEATURED STORY

List Of Computer Misuse Offenses That Could Land You In Trouble With Govt

The advent of the internet is one of the greatest invention of...

The Origins of Commercial Banking in Kenya
ECONOMYFEATURED STORY

The Origins of Commercial Banking in Kenya

Kenya is rich in type, number and sophistication of financial institutions. The...

What to Know about President Ruto’s Planned Nationwide Livestock Vaccination Programme
FEATURED STORYNEWS

What to Know about President Ruto’s Planned Nationwide Livestock Vaccination Programme

The nationwide livestock vaccination programme “against diseases,” planned for January next year,...