http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.87Change: 0.11
R/$ = 15.83Change: -0.02
Au 1241.54 $/ozChange: -12.21
Pt 957.00 $/ozChange: -5.50
 
 
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 About 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

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
WIDENING FLEXIBILITY The trailers have a 3-m-wide (2-file) and 4.3-m-wide (2-file) configuration
Lifting, transporting, installing and ballasting solutions provider Ale has expanded its global fleet of trailers and invested in the latest range of widening trailers that can be mechanically widened from 3 m to the desired width for any project. Ale ordered 48 axle...
The market for the BMW 7 Series in South Africa differs quite significantly from the rest of the world. China, the US and the Middle East almost exclusively buy the long-wheel-base version, using the German manufacturer’s luxury high-end sedan as a chaffeur-driven...
January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year. Statistics released by the Department of Trade and Industry show that the domestic new passenger-car market declined by 6.1%, to 34 936 units, compared with 12 months ago.
More
 
 
Latest News
Former Cosatu general secretary Zwelinzima Vavi
Updated 44 minutes ago President Jacob Zuma’s State of the Nation Address (Sona) showed a breakdown of trust between government and the population of South Africa, according to former Congress of South Africa Trade Union (Cosatu) general secretary Zwelinzima Vavi “Yesterday’s Sona address...
Atterbury Property Developments director Coenie Bezuidenhout
Updated 2 hours 4 minutes ago Atterbury Property Developments is developing a R850-million, 103 000 m2 industrial and business park at the intersection of the N3 highway and Rand Airport road, next to the Elandsfontein interchange. Atterbury designed the park on a site it acquired in Gosforth...
Updated 2 hours 23 minutes ago JSE-listed Pioneer Foods expects a muted first half, largely owing to an exceptional performance in the first half of the prior year, where adjusted headline earnings a share for continuing operations grew by 39%. The company was currently dealing with a weak rand...
More
 
 
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
 
 
 
 
 
This Week's Magazine
WIDENING FLEXIBILITY The trailers have a 3-m-wide (2-file) and 4.3-m-wide (2-file) configuration
Lifting, transporting, installing and ballasting solutions provider Ale has expanded its global fleet of trailers and invested in the latest range of widening trailers that can be mechanically widened from 3 m to the desired width for any project. Ale ordered 48 axle...
The market for the BMW 7 Series in South Africa differs quite significantly from the rest of the world. China, the US and the Middle East almost exclusively buy the long-wheel-base version, using the German manufacturer’s luxury high-end sedan as a chaffeur-driven...
January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year. Statistics released by the Department of Trade and Industry show that the domestic new passenger-car market declined by 6.1%, to 34 936 units, compared with 12 months ago.
Information technology (IT) equipment and infrastructure multinational Dell is providing open infrastructure systems for clients so that they can use any systems, including innovative new systems, that suit their business needs, says Dell Europe, Middle East and...
South Africa’s State-owned defence industrial group, Denel, has set up another international partnership, based in Hong Kong. This new subsidiary is Denel Asia and it is a joint venture (JV) with South African private sector company VR Laser.
 
 
 
 
 
 
 
 
 
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 $149 Close
Subscribe Now for $149