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VIRGINIA MUNYAO: MGR-SGR link to spur economic growth

The SGR and MGR line will have a huge multiplier effect on the economy by moving goods and people

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by VIRGINIA MUNYAO

News08 August 2021 - 12:31
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In Summary


• The revitalisation of the MGR, complete and ongoing on some lines, is expected to play a significant function in sustaining businesses in the counties

• The rehabilitation has excited the business and agricultural fraternities along these corridors that had to rely on expensive road transport to move their products

MGR and SGR link to spur regional economic growth

 

Kenya’s rail transport sector is set to witness an unprecedented growth trajectory, thanks to the refurbishment of the metre gauge railway and ongoing works to link it with thee standard gauge railway.

The revitalisation of the MGR, complete and ongoing on some lines, is expected to play a significant function in sustaining businesses in the counties, as well as creating the requisite cargo volumes to leverage the SGR and cement its viability.

The rehabilitation has excited the business and agricultural fraternities along these corridors that had to rely on expensive road transport to move their products to markets in the city.

Put simply, the revitalisation is economically beneficial to the counties along the railway corridor through provision of faster, reliable and safe transport for high capacity haulage of freight; reducing carbon emissions thus creating a significant positive impact on the environment; reducing wear and tear of the road, hence reducing road maintenance costs; reducing congestion and potential accidents on the road; as well as provision of effective utilisation and security of railway assets.

It also supports the implementation of the Big Four agenda — manufacturing, universal healthcare coverage, affordable housing and food security.

The use of the completed Nairobi-Nanyuki line, for instance, has eased congestion on the roads and reduced maintenance costs.

Passengers travelling to and from Nanyuki have also breathed a sigh of relief as the rehabilitation project has provided safe, reliable and affordable services and also reduced carbon emissions.

One of the immediate impacts of the project has been an increase in the running speeds of the trains from 20kph to 50kph. In the longer term, the branch could be extended northeast from Nanyuki to a connection with the planned Lapsset (Lamu Port – South Sudan – Ethiopia Transport) corridor at Isiolo, with a further connection running west to Nyahururu.

The Gilgil–Nyahururu branch connecting with the main line through the Rift Valley is one of several metre-gauge branches, which the government has committed to rehabilitate as part of a programme to improve the transport of bulk freight and revitalise rural areas.

Other routes include Voi–Taveta, Eldoret–Kitale and Kisumu–Butere. Historically, the rail transport sector line plays a great role in the growth of our nation.

This occurs during the construction and operation phases mainly through job creation. The sector creates thousands of jobs directly and indirectly. Currently, thousands of Kenyans from all walks of life are gainfully engaged in the rail transport sector. Business activity has also increased.

During the construction of the SGR and the ongoing rehabilitation on the MGR, large quantities of locally available resources are being used in the project.

Local inputs such as steel, cement, sand and aggregates, fuel and lubricants, explosives, electricity generation and electricity transmission pylons and cables, roofing materials, glass are being utilised on the projects.

Services such as vehicle hire, insurance, supply of labour, hotel business, healthcare, catering and entertainment are also being used in the project. 

This way, the sector offers new opportunities to do business through increased trade volumes. The SGR and MGR line will have a huge multiplier effect on the economy by moving goods and people.

Notably, the months of July and August have seen a very sharp rise in the number of travellers, especially tourists heading to Mombasa. The net effect of these numbers is the re-opening of coastal hotels and the re-hiring of staff after a bad slump occasioned by the Covid-19 pandemic.

As of July 31, 2021, some 5.84 million passengers had been transported. During the same period, over 1.389 million TEUs [twenty-foot equivalent unit] were transported safely. This is as Africa Star Railway Operation Company, the SGR operator, ensures safety of goods on transit, passenger safety, occupational safety as well as safety of communities along the track.

To this end, Afristar had operated the SGR safely for 1,523 days as of the  July 31, 2021. Regional trade has also been enhanced due to easy movement of freight and passengers, in turn impacting the country’s and the region’s tourist potential and exploitation of stranded resources.

Regional integration efforts will also receive a boost with enhanced rail transport infrastructure. But most importantly, linking of the SGR line and the MGR will provide a seamless connection between Mombasa and Kisumu/Malaba.

This will enable transportation of cargo exclusively via rail from Mombasa to neighbouring countries of Uganda, Rwanda and Burundi.

Key benefits include larger capacity and reduction of transit times for passenger and freight transport services. The carrying capacity will be increased, meaning more volumes of cargo will be delivered.

The interface between SGR and MGR will also go a long way in decongesting the Port of Mombasa, a key transport and logistics hub in the region.

The throughput at the port is on the rise and is projected to grow to 30+ million tonnes by the year 2030. There is therefore need to increase the capacity of transport infrastructure to meet the existing and projected transport demand at the Port.

A seamless connection from Mombasa to Kisumu/Malaba will be a sure way of decongesting the port.

The author is a communications adviser, Afristar

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