By Jonathan Adengo
Kampala — Rift Valley Railways (RVR) has signed a Memorandum of Understanding (MoU) with the Egyptian Export Council to attract exports through Mombasa port, Kenya and Uganda.

The MoU recently signed in Cairo, Egypt by Qalaa Holdings, the parent company of RVR, will make RVR the official inland transportation carrier for Egyptian exporters of chemicals and fertilisers and also promote its services at local and international trade exhibitions.

Commenting on the agreement, RVR chairman Titus Naikuni said becoming the Egyptian export council official inland transportation carrier is a significant step that will help lead the way to broadening and deepening trade and investment between Egypt and East Africa. “We are also pleased to be entering into a cooperation with a company like Expo One to develop larger volumes of trade and highlight the benefits of rail transport,” he said.

In a statement, Qalaa Holdingsmanaging director transportation and logistics Karim Sadek said: “RVR’s move into a contract-based revenue model, with incentives to clients based on higher volumes, will set a precedent that can be applied to other countries that trade with Kenya and Uganda.”

At the moment, RVR is a cost-effective friendly mode of transporting goods in East Africa. The railway offers a door-to-door transportation and customs-clearance service through its subsidiary East Africa Rail and Handling that can help exporters tap into new markets and grow the volume of intra-regional trade.

RVR and qaala

RVR is Qalaa Holdings’ primary investment in the African transportation sector, with a 25-year concession to operate 2,352 km of track linking the port of Mombasa to the interiors of Kenya, Kampala and northern Uganda.

Source: All Africa News

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.