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 go

LINK:

LONG ON PROMISE SHORT ON DELIVERY - SGR MAKES LITTLE IMPACT ON COUNTIES IT TRAVERSES

Is it too early or are critics being too harsh or were we sold a sick monkey ?

But the Kenya government last month directed that all imports coming in through the Mombasa port be transported by the SGR, setting off a round of protests from businesses.

“We arrived at this decision after consulting with other players, including container freight station (CFS) owners, and agreed to have goods moved by train,” said Kenya Railways managing director, Atanas Maina.

At the port, CFS owners and the clearing and forwarding agents, say such orders will kill their business, as importers will have to liaise with new service providers to access the Embakasi ICD.

“Initially, we agreed to have the Nairobi CFS mainly handle such cargo as raw materials and industrial inputs. Now that they have ordered all un-nominated cargo to be transported by the rail, thereby putting our businesses at risk,” said James Rarieya, the chairman of the CFS Association.

The CFS came into operation a decade ago in a bid to ease congestion at Mombasa port, which saw ships charged for delayed cargo deliveries, and these costs passed on to clients.

“Our business is made on volumes moved from port to customers’ premises and that is why the government directive is hitting our bottom line hard. We attract clients by not only charging less on storage but also giving incentives. It is seamless when we work with clearing agents and it is this wholesome package that endears us to clients,” Mr Rarieya said.

But Kenya Railways deny intending to kill this element of logistics services, saying that they are only shifting a point of cargo handling.

“The Nairobi ICD cannot handle the 28 million tonnes. We still have a lot of opportunities for them to do business and I am certain that the CFS owners have identified opportunities at the Nairobi facility too,” Mr Maina said.