Engineering News

Kenya has set in motion the process to appoint an operator for a new standard-gauge railway (SGR) line that is poised for completion in May next year.
State-owned Kenya Railways Corporation (KRC) has already advertised for a transaction adviser to assist in the process of procuring the operator. The new line will run from the coastal city of Mombasa to Nairobi, the capital city.

“The objective of the assignment is to manage and lead the process of procuring an experienced operator to operate the Mombasa–Nairobi SGR line upon completion,” KRC states.
It adds that the scope of work of the transaction adviser will include recommending the most appropriate model to KRC and managing and participating in the procurement process, which will include preparing bid specifications and inducting the operator.

KRC decided to bring on board a transaction adviser to oversee the recruitment of the SGR operator to avoid the pitfalls that the Kenya Ports Authority (KPA) encountered in its efforts to appoint an independent operator for the new second container terminal at the Mombasa port.

Controversies and court cases dogged the KPA process, forcing the Kenya government to terminate it. The KPA had to assume management of the new terminal, but port users are already complaining about the authority’s inability and lack of capacity to operate the terminal.

According to KRC MD Atanas Maina, the SGR line is designed to redefine railway transport in the East Africa region, which, he avers, is why it is important to outsource its operation to a competent international company.

This is particularly important, given that Rift Valley Railways (RVR), the independent operator managing the existing railway line under a 25-year concession, turned out to be a failure. RVR has been underperforming in all set parameters and managed to ferry only about 1 500 t of cargo in 2015.

“Construction of the SGR line is running ahead of schedule and that is why we have started the process that should culminate in identifying the appropriate operator by the time it’s completed in May next year,” Maina tells Engineering News.

He adds that KRC will soon start importing locomotive engines, wagons and passenger coaches in readiness for the completion of the line. KRC intends to import 60 locomotive engines, 1 620 wagons and 40 passenger wagons.

Phase 1 of the SGR line project covers a distance of 472 km from Mombasa to Nairobi and is being implemented by China Road & Bridge Corporation at a cost of $3.2-billion. China Exim Bank has provided 90% of the funding, while the Kenya government will be responsible for the remaining 10%.

Last month, Kenyan authorities announced that construction of Phase 2 – from Nairobi to Malaba, on the Kenya-Uganda border – will begin soon after the contract has been awarded to China Communications Construction Company.

The high-capacity railway line, where speeds of 180 k/h and 120 k/h for passengers and freight respectively will be possible, is expected to ease pressure on road transport, which accounts for over 90% of cargo transportation.

The Mombasa–Malaba line is part of a wider East African railway project that cuts across Kenya, Uganda and Rwanda. The entire project covers a distance of 3 000 km and will cost a staggering $14-billion.