This archive report was first published on 16 October 2019.
On October 16, 2019, the second phase of the Standard Gauge Railway (SGR) opened for passenger operations, but questions remain over its viability and the funding to complete the last phase to the Ugandan border.
The launch was limited to passengers, with cargo expected to be introduced later. However, the absence of cargo poses a significant challenge, as it is the primary source of revenue for the Kenya Railway Corporation.
According to economist Toni Watima, the government has invested heavily in a project that may not be commercially viable at the moment. 'The essence of the second phase of SGR was to serve businesses at the proposed industrial park in Naivasha, but at the moment we do not know how far the plans have moved,' Watima said.
The Naivasha SGR has stations at Rongai, Suswa in Narok, and Mai Mahiu in Naivasha. President Uhuru Kenyatta has announced plans to allocate 10 acres to South Sudan at the Inland Container Depot at the Naivasha Industrial Park to ease the movement of goods to the neighboring nation.
Uganda is the biggest market for Kenyan goods, and the biggest client to the Port of Mombasa, especially for transit cargo. However, until the dry ports and industrial park are put in place, there will be inadequate cargo destined to the western part of the country.
Recently, the cabinet approved Sh6.9 billion for the construction of a dry port in Naivasha, which will also include a railway marshalling yard, logistics zone, and public utility area. Gilbert Lagat, CEO of the shippers council, emphasized the importance of efficiency in handling consignments.
‘Shipper have no problem with ports anywhere. The determinant for us is the cost and efficiency in handling our consignments,’ Lagat said.
