Laws governing railway business will be reviewed to allow private individuals and companies to own wagons.

The Kenya Railways Corporation Act is being reviewed to match the new business regime that accommodates partnership as a mode of enhancing efficiency in their operations, according to Kenya Railways managing director Atanas Maina.

Mr Maina, who was speaking in Wundanyi, Taita Taveta County, said the corporation faced many challenges that could, however, be sorted out through partnerships with the private sector.

“As we move to re-energise railway transport by bringing in speedy trains on the standard gauge railway, freight is also getting a new impetus where trains that can move at a speed of up to 80 kilometres per hour will be introduced,” he said.

This is one of the areas the government intends to market aggressively to decongest the Port of Mombasa and reduce traffic jam on the Nairobi-Mombasa Highway.

Exporters will enjoy reduced cost of transporting cargo from the Port of Mombasa to the hinterland and the East Africa Community trading bloc when the construction of the standard gauge railway is completed in 2018.

RAILWAY LEVY

The first phase of the SGR will cost Sh130 billion, most of it a loan from Exim Bank of China. The rest will be sourced from the Railway Development Levy raised from imports and exports at the Port of Mombasa.

The project was contracted to China Roads and Bridges Corporation on engineering, procurement and construction (EPC) for efficiency terms.

The MD said the EPC mode of contract was identified as one of the best for the contractor because it will enable him to work effectively within the contract framework.

Source: Daily Nation

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