The project is set to be completed in two years. It is, however, not clear when it will start.
The railway siding is an extension of both standard gauge and metre gauge railways linking EPZ to the main railway lines.
“The new railway link is expected to offer investors at the Athi River Export Processing Zone a cheaper alternative to transport their products as well as bring in raw materials," Kuria said.
The CS said the project is part of the government's commitment to improve infrastructure and create a conducive business environment to attract both local and foreign investors.
"The project aligns with the government’s target of improving competitiveness of the Athi River zone and reduces the cost of production to make the Kenyan economy export-driven,” he said.
Kuria spoke when he toured EPZ where the project will be undertaken on Monday.
He said the project will be implemented through a public-private partnership.
Kuria was accompanied by CSs Kipchumba Murkomen (Transport) and Florence Bore (Labour). Others present included Investment Promotion PS Abubakar Abubakar, EPZA CEO Hussein Adan, among other government officials.
“This is a very exciting day for me, a very unique partnership between the Ministry of Investment, Trade and Industry, the Ministry of Roads and Transport and the Ministry of Labour representing NSSF that we are able to put together our capabilities to achieve the government's approach and objectives," Kuria said.
“This project of enabling access to the SGR and MGR by a private investor is the working model of our new strategy of financing infrastructure through public private partnership."
The CS said although 70 per cent of Kenya's exports to the US come from EPZ, investors operate with difficulties since their products have to be transported using trucks to the Inland Container Depot or Mombasa for exportation.
But once the project is completed, he said, the manufactured products will be transported directly to Mombasa ports from EPZ through the railway. This will reduce transportation costs and time taken to transport the goods. It will also improve efficiency.
Kuria said this will ensure manufacturers continue to take advantage of the African Growth and Opportunity Act market.
He said Africa accounts for less than 0.01 per cent of the AGOA market.
“We have a huge market, but right now we are only exporting goods worth $Sh500 million annually. We want to raise that figure to $5 billion per year,” Kuria said.
Kuria said EPZ Athi River has employed about 50,000 people. He said the project will create more jobs.
“We hope that with this project, another 500,000 jobs will be created here just from the existing facilities. The demand that is there within AGOA market is much higher than 500,000 jobs,” he said.
“That’s where NSSF comes in because we have ready investors who keep on knocking on our doors.”
Kuria said the government is also working tirelessly to ensure the zone is connected to a reliable water and electricity supply.
Murkomen said he had held consultations with Kenya Railways on the project and they were waiting for final designs from the consultants.
“Our objective is to make sure that with PPP model, we are able to provide the rolling stock as required and locomotives to assist you to carry goods from here to Mombasa or Kampala if need be,” he said.
Murkomen said they will make sure containers don’t return to Mombasa empty by providing better investments so that supplies from Kenya to the port match the goods imported into the country.
“I’m here to assure you that the Ministry of Transport and Roads is going to do everything humanly possible to ensure this noble endeavour is achieved,” Murkomen said.
The CS said the government does not have money for capital intensive projects like roads, railways and ports, hence the need to work with the private sector.
CS Bore said the project was welcome.
“As investors through NSSF, we look forward to partnering with you. I will do my best and I’m committed to ensuring the success of this project,” she said.
Adan said there are 92 zones in the country- six public and 86 private. He said the zones are located in 22 counties across the country and have employed about 85,000 Kenyans.
He said they realised the ease of doing business was dependent on the creation of a conducive environment for investors.
"Athi River is strategically positioned logistically and to further improve the ease of operations, we have recommended a railway project. This will reduce the cost of operations, making EPZ export goods competitive in the global market," Adan said.
