http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.87Change: 0.01
R/$ = 13.30Change: 0.00
Au 1133.54 $/ozChange: -1.31
Pt 1018.00 $/ozChange: -2.00
 
 
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 Letters 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|rail|Road|RVR|System|transport|Africa|Burundi|China|Democratic Republic Of Congo|Egypt|Kenya|Rwanda|South Africa|Uganda|USD|Mombasa Port|Railway Network|Tury-old Railway Network|Brown Ondego|Infrastructure
Construction|Port|Africa|rail|Road|System|transport|Africa|Democratic Republic Of Congo|Kenya|||||Infrastructure
construction|mombasa|nairobi|port|africa-company|rail|road|rvr|system|transport|africa|burundi|china|democratic-republic-of-congo|egypt|kenya|rwanda|south-africa|uganda|usd|mombasa-port|railway-network|tury-old-railway-network|brown-ondego|infrastructure
© 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
Creamer Media Senior Deputy Editor
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
More
 
 
Latest News
A preliminary investigation by the Railway Safety Regulator (RSR) into the derailment of a Shosholoza Meyl train in Kimberley earlier this month, found that Transnet Freight Rail (TFR) had failed to communicate with the Passenger Rail Agency of South Africa (PRASA)...
Three of home improvement company Illiad’s major shareholders – Sanlam, Visio and Coronation, which held 69.25% – have agreed to vote in favour of a takeover by Steinhoff, with the company’s remaining shareholders to vote on the deal on September 29. Seventy-five per...
Government should face the fact that South Africa’s full-blown jobs crisis is a matter of urgent public importance, the Democratic Alliance (DA) said on Friday. MP James Vos, the DA shadow minister of tourism, was responding to a letter by Baleka Mbete, the Speaker...
More
 
 
Recent Research Reports
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96