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PUBLISHED ON October 15th, 2018

Rail to boost Africa trade

After decades of unabated downturn, rail transport is steadily bouncing back, thanks to technological innovation, a shift in management approaches and the effects of climate change, which have seen increased sensitisation on environmental issues. This renaissance has encountered some bottlenecks, owing to inadequate government commitment in some countries.

The African Development Bank, in its 2015 report Rail Infrastructure in Africa: Financing Policy Options, says Africa is experiencing an unprecedented economic recovery, with strong growth projections over the next three to four decades.

According to the report, the growth is driven by a fast-growing demographic and large-scale urbanisation. The operation of new mines, gas and oil fields, as well as the increase in intra-regional and international trade, are additional growth factors. Notably, the transport sector can accelerate and intensify trade in Africa.

Rail transport, in particular, as a result of its energy efficiency, reduced greenhouse gas emissions and lower cost per tonne kilometre, is expected to play an increasingly important role in the conveyance of freight over long distances.

But even as Africa becomes more and more attractive as a destination for infrastructure financing in many sectors such as energy, telecoms and transportation, investment in railways is still small compared to other sectors.

This calls for more institutional reforms and mature financial markets to up-scale the implementation of new approaches to infrastructure finance commonly found in developed countries such as project bonds.

In Kenya, the standard gauge railway, a flagship project of Vision 2030, financed by the China Exim Bank, has already transformed the transport sector by shortening the passenger travel time from Mombasa to Nairobi, with freight trains completing the journey in less than eight hours.

It is noteworthy that the China Road and Bridge Corporation, the operator of Madaraka Express train service, has embarked on a mission to revamp its image and position itself as the number one public transporter of choice in the country.

Launched in June last year, Madaraka Express Service operates four daily shuttles, ferrying hundreds of passengers in the inter-county and express service trains between Nairobi and Mombasa. As of September 30, Madaraka Express had ferried over 1.89 million passengers in 1,638 trips.

And since July 14, SGR has been operating an average of 14 freight trains a day between Nairobi and Mombasa, with a maximum of 20.  Each train carries up to 54 vehicles, transporting 108 20-foot Equivalent Unit (TEU) containers per train in a single direction from Mombasa to Nairobi. This translates to a total of 756 TEU containers per day.

The latest statistics indicate 160,000 TEU and 1.86 million tonnes of cargo have been transported. There are five types of cargo transported via the Nairobi-Mombasa Railway, that is, containers, hazardous articles, coiled steel, bagged grain and wire rod.

There is no gainsaying that customer service skills are at the core of the success of any organization. Significantly, train companies have a number of consumer facing obligations and it is imperative that passengers get the service to which they are entitled.

CRBC, in its quest to enhance service delivery and improve customer experience on the Madaraka Express, has been sending its passenger service crew for customer training in China. The training aims at maximising skills transfer in the organization.

Above all, the introduction of booking tickets through mobile phones has enhanced customer convenience. Whereas certain concerns have been raised by members of the public regarding the lopsided composition of workers on the train, as well as longer periods required to place advance bookings, these are teething problems likely to be experienced by any service operator venturing into new territory. With time, these problems are all surmountable.

As the region continues to grapple with transport challenges, the East African Railway Master Plan, a proposal that provides a guide to the development of the railways transport sub-sector in the region over the next 25 years, will no doubt,  present business cases that would attract private sector investments in the sector.

When all is said and done, the  renaissance  of  the  railways  in  Africa  will  need  to  be

underpinned by  the  recognition  that  greater  funds  are  required to  bring the infrastructure  up to  an acceptable level. In addition, a higher degree of professionalism, regulation and expertise is required within the industry to ensure that international best practices are upheld.

Zachary Ochieng is a communications adviser for the China Road and Bridge Corporation

Source The Star

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.

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