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kenya railways 17billion bond.
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selah
#1 Posted : Tuesday, May 17, 2011 1:49:18 PM
Rank: Elder


Joined: 10/13/2009
Posts: 1,950
Location: in kenya
KRC plans to float a bond to fund the expansion of the railway system especially the commuter trains.

If I was asked I would say this is the worst company to be floating for a bond The reasons being.

1.This company has not shown what they are currently doing with their current infrastructure to optimize its offering.

2.KRC is still solely owned by the government which does not reassure us of professionalism going forward.

3.The obsolete infrastructure, that is steel wagons and rails, are being pilfered and rusting away in the stations a considerable amount can be raised by selling the scrap metal to fund short term strategies.

4.Why not offer a private-public partnership arrangement for the expansion of the railway system.South Africa has successfully done that.

I still think this is another Nyayo project that would go No where as long as the government is left to carry it alone.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Mainat
#2 Posted : Wednesday, May 18, 2011 8:34:03 AM
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Joined: 11/21/2006
Posts: 1,590
If it was guaranteed by GoK, this I'd definitely put my shillings in.
We desperately need rail transport to take some of the cars off the Nairobi roads
Sehemu ndio nyumba
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Cde Monomotapa
#3 Posted : Wednesday, May 18, 2011 8:58:35 AM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
PPP @RVR hasn't been encouraging either. What to do?
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selah
#4 Posted : Wednesday, May 18, 2011 10:58:00 AM
Rank: Elder


Joined: 10/13/2009
Posts: 1,950
Location: in kenya
I think the only way kenya railways can compete with road and air effectively if it was split into 3 parts.

1.Cargo
2.commuter/passenger
3.Tracks.

Let the government and a private company maintain and manage the tracks then let private companies Run the trains/locomotives.

If RVR and several other companies could be allowed to operate on those tracks with good technology to prevent collision we would be enjoying a very good sector that would grow exponentially.

But what we have currently is a company that tries to maintain the tracks the coaches and the wagons if you factor the cost of maintaining all that baggage it will be difficult for a company to break even.Its like letting Matatus maintain roads and terminus.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Cde Monomotapa
#5 Posted : Wednesday, May 18, 2011 11:03:39 AM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
selah wrote:
I think the only way kenya railways can compete with road and air effectively if it was split into 3 parts.

1.Cargo
2.commuter/passenger
3.Tracks.

Let the government and a private company maintain and manage the tracks then let private companies Run the trains/locomotives.

If RVR and several other companies could be allowed to operate on those tracks with good technology to prevent collision we would be enjoying a very good sector that would grow exponentially.

But what we have currently is a company that tries to maintain the tracks the coaches and the wagons if you factor the cost of maintaining all that baggage it will be difficult for a company to break even.Its like letting Matatus maintain roads and terminus.

I concur a 100%
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Genghis Khan
#6 Posted : Thursday, May 19, 2011 8:19:52 AM
Rank: Member


Joined: 8/5/2010
Posts: 335
Location: Nairobi
selah wrote:
KRC plans to float a bond to fund the expansion of the railway system especially the commuter trains.

If I was asked I would say this is the worst company to be floating for a bond The reasons being.

1.This company has not shown what they are currently doing with their current infrastructure to optimize its offering.

2.KRC is still solely owned by the government which does not reassure us of professionalism going forward.

3.The obsolete infrastructure, that is steel wagons and rails, are being pilfered and rusting away in the stations a considerable amount can be raised by selling the scrap metal to fund short term strategies.

4.Why not offer a private-public partnership arrangement for the expansion of the railway system.South Africa has successfully done that.

I still think this is another Nyayo project that would go No where as long as the government is left to carry it alone.


I think that the fact that GoK is a major shareholder makes the BOND a very secure investment... nothing will happen to your Principal and nothing will happen to your Coupon.

However I understand if yours is a moral issue and (what you mean is that) you want your money to be employed appropriately.

If they issue Ordinary Shares... be scared...
"I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
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selah
#7 Posted : Thursday, May 19, 2011 10:27:32 AM
Rank: Elder


Joined: 10/13/2009
Posts: 1,950
Location: in kenya
@genghis

I think you got my drift its morally incomprehensible.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Barrywhite
#8 Posted : Thursday, May 19, 2011 11:47:05 AM
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Joined: 12/2/2009
Posts: 286
Location: Nairobi

There are works on some Railway Stations that have started, like oppoiste Kapa Oil in Syokimau. The railway terminus building is ongoing, they are almost casting second floor slab. Is this bond required to further these works among others or this is a separate project?
The laudable is more often than not rendered laughable by overclaim
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selah
#9 Posted : Thursday, May 19, 2011 12:45:27 PM
Rank: Elder


Joined: 10/13/2009
Posts: 1,950
Location: in kenya
Barrywhite wrote:

There are works on some Railway Stations that have started, like oppoiste Kapa Oil in Syokimau. The railway terminus building is ongoing, they are almost casting second floor slab. Is this bond required to further these works among others or this is a separate project?


They are also building the Makadara halt although I dont know if its KRC or RVR doing the work.

I think KRC should be left as an overseer and give concessions for this projects lets say the government guarantees the bond and money given to KRC how sure are the project will be carried in a transparent manner.I think if KRC were to be entrusted with all that money it should be partly privatised like KPLC or Kengen for transparency to be assured.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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selah
#10 Posted : Friday, May 20, 2011 10:49:36 AM
Rank: Elder


Joined: 10/13/2009
Posts: 1,950
Location: in kenya
I think KRC saw my reservations or kenyans reservation with their capacity to manage the railways The KRC MD had this to say about the ongoing and the envisaged projects.
Quote:

“We are providing the infrastructure and plan to invite the private sector to provide the new train sets and operational expertise,” said Mr Nduva Muli, the managing director of Kenya Railways.


He also seem to assure us of the risk to our investment.

Quote:
InfraCo is tasked with shouldering much of the up-front costs and risks of early stage development of the project thereby reducing the entry costs of private sector infrastructure developers.

It will also arrange for private sector investors to come into the project through competitive bidding and will in turn get an unspecified minority stake in the project, which it sells over time.


http://bit.ly/j2XZRh
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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bwenyenye
#11 Posted : Friday, May 20, 2011 1:07:33 PM
Rank: Elder


Joined: 5/24/2007
Posts: 1,805
As long as the government guarantees the bond and it has excellent yield ( like 15% after tax) I do not care if they take the money and dump it in the ocean, I will invest in the governement sovereignity and not the returns on the rail.
I Think Therefore I Am
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