http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.15Change: 0.05
R/$ = 11.58Change: -0.02
Au 1195.87 $/ozChange: -1.05
Pt 1197.50 $/ozChange: 0.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 27, 2012

Big Kenya–Uganda railways overhaul poised to begin

Back
Construction|Mombasa|Nairobi|Port|Africa|Road|RVR|System|Africa|Burundi|China|Democratic Republic Of Congo|Egypt|Kenya|Rwanda|South Africa|Uganda|USD|Mombasa Port|Railway Network|Transport|Tury-old Railway Network|Brown Ondego|Infrastructure|Rail
Construction|Port|Africa|Road|System|Africa|Democratic Republic Of Congo|Kenya||||Transport||Infrastructure|Rail
construction|mombasa|nairobi|port|africa-company|road|rvr|system|africa|burundi|china|democratic-republic-of-congo|egypt|kenya|rwanda|south-africa|uganda|usd|mombasa-port|railway-network|transport-industry-term|tury-old-railway-network|brown-ondego|infrastructure|rail
© Reuse this



The enormous task of rehabilitating and modernising the cen- tury-old railway network in Kenya and Uganda is set to begin – six years after privatisation.

Just when the authorities in the two countries had once again started expressing reservations about Rift Valley Railways’ (RVR’s) ability to transform the archaic system, the company has revealed rehabilitation work is about to start, following the arrival of rail bars and sleepers from China worth $19-million.

RVR CEO Brown Ondego says the arrival of the consignment heralds the beginning of the programme to revive the fortunes of the railway network in the two neighbouring countries.

“The delays we have been experiencing were due to delays in releasing of funds by our fin- anciers. Now that they have started to release the funds, we are not wasting more time,” he says.

Recently, RVR took delivery of 6 869 t of rail bars and 10 000 sleepers from China that will be used to repair some 70 km of sec- tions of the permanent way between Kenya’s capital, Nairobi, and the coastal city of Mombasa.

According to Ondego, this is the first step in a comprehensive five-year turnaround programme aimed at transforming railway transport in Kenya and Uganda. The programme has a price tag of $168-million, which is being funded by a consortium through a syndicated loan.

Early this year, the financiers released the first tranche of the loan – $49-million – which enabled RVR to procure the rail material from China.

“We intend to start laying the permanent way imme- diately because we want to increase the speed of trains and increase haulage,” he states.

Meanwhile, a report compiled by the Joint Railway Commission, a body set up by the two governments to oversee the performance of RVR, states the company is still underperforming on most of the parameters set out in the 25-year concession.

For instance, RVR managed to transport a mere 1.7-million tons of cargo in 2011 of about 10-million tons of cargo arriving at the Mombasa port. This means that about 90% of the cargo arriving at the port destined for Uganda, South Sudan, Rwanda, Burundi and parts of the Democratic Republic of Congo is transported by road.

RVR, which is owned by Egypt-based private-equity firm Citadel Capital and Kenyan infrastructure firm TransCentury, was originally owned by South Africa’s Sheltam Railways.

The company operates 100 loco- motives, 3 500 wagons and the 2 352 km rail track in a concession spanning 25 years.

“Our primary focus is to improve the condition of the permanent way so as to improve transit times as line speeds will increase from the current restrictions of between 25 km/h and 30 km/h to 70km/h,” explains Ondego.

On the Ugandan side, RVR has embarked on the construction of nine culverts between Busembatia and Jinja at a cost of $4.9-million.
RVR hopes the turnaround programme will translate into a market share growth of between 10% and 12% in the medium term.

The programme is being financed by the International Finance Corporation ($22- million), the African Development Bank ($40-million), the German Development Agency ($32-million), the Dutch Develop-ment Bank ($20-million), the ICF Debt Pool ($20-million), the Belgian Investment Company for Developing Countries ($10-million) and Kenya’s Equity Bank ($20-million).

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
More
 
 
Latest News
China appears to have been routinely underestimating output from its sprawling steel sector, with official figures for last year alone 40-million tonnes below a key industry estimate - an amount equivalent to Germany's entire annual production. Beijing has vowed to...
Lumwana, Zambia
Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
The Labour Court in Johannesburg has set aside the 2011-2014 metal sector wage agreement, the National Employers' Association of SA (Neasa) said on Thursday. The 2011-2014 wage deal was the result of an agreement between the Steel and Engineering Industries...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks