SGR will happen, at any cost. Fragile egos are at stake, coupled with billions embezzled.
Currently, the discounted pricing of a 40 footer to Nairobi with return of empty is $700 by SGR, $950 by road.
How long the price concession will last is anyone's guess, but even if they match the price to road, it will survive.
Issue is process and max volume.
Process is a mess....typical GoK project run by incompetents who got their jobs based on tribe. If process is sorted, I'd risk saying they can charge more than road and still get volumes. Process can be fixed....someday.
However, max volume is another story. That conundrum should have been solved before investing, not now after billions have been spent and eaten. Max volume will not allow SGR to be commercially viable.
But who says GoK needs return on investment? We can keep paying loans with new loans for projects with zero return and bootlickers call that progress.
We're on a road to nowhere
Come on inside
Taking that ride to nowhere
We'll take that ride
I'm feeling okay this morning
And you know
We're on the road to paradise
Here we go, here we goBusiness opportunities are like buses,there's always another one coming