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SGR Progress thus far
Rank: Veteran Joined: 1/10/2015 Posts: 961 Location: Kenya
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aemathenge wrote:Copy and Paste Kenya Forcing Importers to Use Costly New Chinese Railway, Businessmen SayBy Reuters Dec. 3, 2019, 2:13 a.m. ETMOMBASA, Kenya — Kenya's new Chinese-built railway should have been a boon for business. The $3.3 billion (2.6 billion pounds) line sliced hours off the journey from the port city of Mombasa to the capital, Nairobi. But some importers said their transport costs shot up by nearly 50% when they used the rail due to extra fees, more time spent clearing goods at the congested Nairobi train depot and the need to send a truck to collect the goods from there.SOURCE: https://www.nytimes.com/...ers-kenya-railways.html
With the new railway, the white man is unhappy that he has nowhere to dump his old trucks that ferry cargo from mombasa. He is angry to see the cash going into the chinaman's pocket instead of going to used truck exporters in london. It's all about the west vs china trade war. Also how come the americans are happy to give us a new huge loan for a new nairobi - mombasa expressway while they say we are already overburdened with loans? Proverbs 13:11 Dishonest money dwindles away, but whoever gathers money little by little makes it grow.
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Rank: Member Joined: 9/9/2010 Posts: 784 Location: ant hill - red hill
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The greatest act of bravery is chancing a fart while suffering from diarrhoea
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Rank: Elder Joined: 10/18/2008 Posts: 3,434 Location: Kerugoya
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Sometimes I cry for Kenia. What have we got ourselves into? SGR’s Sh1bn grass: Inside unbridled greed and negligence in megaproject
Tuesday February 25 2020 Quote:In essence, this meant that there was no trickle-down effect of this huge loan of the project on the local economy as the Chinese imported almost everything for the project, including small things like toilet paper, toothpicks and sugar.
All custom duties and charges on importation of equipment of parts and materials, etc, shall be exempted by the employer.”
But even worse is the fact that CRBC was given a leeway to adjust the prices of individual components of the contract by making the bill of quantities non-binding.
“The contract price is to be adjusted for rises or falls in the cost of labour, goods and other inputs to the works by the addition or deduction of amounts,” says the contract.
And that is not all.
Even in areas where the government would have recouped part of the cost by taxing the equipment being imported by the Chinese, it did not.
“All custom duties and charges on importation of equipment of parts and materials, etc, shall be exempted by the employer.” Source Link: The Nation Prime
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Rank: Veteran Joined: 1/10/2015 Posts: 961 Location: Kenya
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aemathenge wrote:Sometimes I cry for Kenia. What have we got ourselves into? SGR’s Sh1bn grass: Inside unbridled greed and negligence in megaproject
Tuesday February 25 2020 Quote:In essence, this meant that there was no trickle-down effect of this huge loan of the project on the local economy as the Chinese imported almost everything for the project, including small things like toilet paper, toothpicks and sugar.
All custom duties and charges on importation of equipment of parts and materials, etc, shall be exempted by the employer.”
But even worse is the fact that CRBC was given a leeway to adjust the prices of individual components of the contract by making the bill of quantities non-binding.
“The contract price is to be adjusted for rises or falls in the cost of labour, goods and other inputs to the works by the addition or deduction of amounts,” says the contract.
And that is not all.
Even in areas where the government would have recouped part of the cost by taxing the equipment being imported by the Chinese, it did not.
“All custom duties and charges on importation of equipment of parts and materials, etc, shall be exempted by the employer.” Source Link: The Nation Prime When the UK or american govt is undertaking projects in Kenya, there's no taxation on project equipment including vehicles. And the equipment are wholly sourced from the donor or funding country. It is common sense that you can't be helping someone and then they (the beggars) are charging/taxing you while you are trying to help them. Also planting grass on both sides of a 500km long railway is a costly affair. NB landscaping and planting grass on a 50x100 ft plot can cost you about 200k. So spending 1B to landscape a 500km line (plus concrete drainage systems to prevent soil erosion which could weaken the railway) is actually a good deal.  Proverbs 13:11 Dishonest money dwindles away, but whoever gathers money little by little makes it grow.
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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sqft wrote:aemathenge wrote:Sometimes I cry for Kenia. What have we got ourselves into? SGR’s Sh1bn grass: Inside unbridled greed and negligence in megaproject
Tuesday February 25 2020 Quote:In essence, this meant that there was no trickle-down effect of this huge loan of the project on the local economy as the Chinese imported almost everything for the project, including small things like toilet paper, toothpicks and sugar.
All custom duties and charges on importation of equipment of parts and materials, etc, shall be exempted by the employer.”
But even worse is the fact that CRBC was given a leeway to adjust the prices of individual components of the contract by making the bill of quantities non-binding.
“The contract price is to be adjusted for rises or falls in the cost of labour, goods and other inputs to the works by the addition or deduction of amounts,” says the contract.
And that is not all.
Even in areas where the government would have recouped part of the cost by taxing the equipment being imported by the Chinese, it did not.
“All custom duties and charges on importation of equipment of parts and materials, etc, shall be exempted by the employer.” Source Link: The Nation Prime When the UK or american govt is undertaking projects in Kenya, there's no taxation on project equipment including vehicles. And the equipment are wholly sourced from the donor or funding country. It is common sense that you can't be helping someone and then they (the beggars) are charging/taxing you while you are trying to help them. Also planting grass on both sides of a 500km long railway is a costly affair. NB landscaping and planting grass on a 50x100 ft plot can cost you about 200k. So spending 1B to landscape a 500km line (plus concrete drainage systems to prevent soil erosion which could weaken the railway) is actually a good deal. Grass is not cheap. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 10/18/2008 Posts: 3,434 Location: Kerugoya
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Life must go on. Quote:SGR cargo to operate 24–hours, Mainga says
Afristar has been directed to ensure seamless services
by MARTIN MWITA Business Writer 02 April 2020 - 09:10
The Standard Gauge Railway cargo service will continue to operate on a 24 hour basis, Kenya Railways has said, a move that will ensure seamless movement of goods.
Operations on Madaraka Express Passenger Service between Nairobi and Mombasa however remain adjusted to allow commuters beat the 7pm–5am nationwide curfew deadline , where the only one scheduled train operate from each end.
Kenya Railways managing director Philip Mainga yesterday said Africa Star Railway Operation Company (Afristar), the contracted operator of both the Madaraka Express and SGR freight service, has been directed to ensure seamless services during the ensuing period.
This will ensure the country remains in constant supply of imports, a time when the coronavirus has hit the country.
This, even as global trade and supply network remain disrupted by the virus, which has affected shipping trends and container volumes landing at the port of Mombasa.
“The SGR cargo service will continue to operate as scheduled.
Kenya Railways advises actors in the freight business to take advantage of the SGR and Meter Gauge Railway synergies to leverage their prospects,” Mainga said.
The corporation has guaranteed the safety of goods on transit.
“We remain committed to the provision of efficient and reliable freight transport services during this difficult moment,” said Mainga.
Both the passenger and cargo services are available between the port town of Mombasa and Suswa in Narok County, he added.
Afristar operates an average nine cargo trains with 44 wagons daily from Mombasa to the Inland Container Deport-Nairobi(ICDN) Nairobi, hauling an average 900 containers per day. Source: https://www.the-star.co....ate-24hours-mainga-says/
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Rank: Elder Joined: 10/18/2008 Posts: 3,434 Location: Kerugoya
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SGR Back In The News For Wrong Reasons; How Did We End Up Here?WEDNESDAY MAY 27 2020 By ROBERT SHAWThe standard gauge railway (SGR) project is back in the limelight. As often the case, the fatally marred overly controversial undertaking has hit the headlines for the wrong reasons: Its dubious origins and very chequered operation. The State Law Office wants a review and renegotiation of the operating agreement between the parastatal Kenya Railways Corporation (KRC) and Chinese operator Africa Star Railways. The thrust of the Solicitor-General’s argument is, KRC is paying over the odds for several services and non-services making the SGR’s operating costs inordinately high. SGR charges $33 (Sh3,300) per kilometre per tonne, whereas the cost by road is a quarter less. Such a huge difference makes it very difficult to convince customers to put their cargo on SGR. Source: The Daily Nation: https://www.nation.co.ke...64592-63rtv2z/index.html
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Rank: Veteran Joined: 1/10/2015 Posts: 961 Location: Kenya
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Very good progress. Cargo now moving nyweee to naivasha unlike before where there was maddening traffic at mai mahiu flyover.  Proverbs 13:11 Dishonest money dwindles away, but whoever gathers money little by little makes it grow.
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Rank: Member Joined: 11/15/2010 Posts: 454 Location: Nairobi
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sqft wrote:Very good progress. Cargo now moving nyweee to naivasha unlike before where there was maddening traffic at mai mahiu flyover. When they say Naivasha ICD, do they mean Mai-Mahiu station or Suswa Station....or is it another station altogether. ....He who began a good work in you will carry it on to completion..
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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tinker wrote:sqft wrote:Very good progress. Cargo now moving nyweee to naivasha unlike before where there was maddening traffic at mai mahiu flyover. When they say Naivasha ICD, do they mean Mai-Mahiu station or Suswa Station....or is it another station altogether. Suswa Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Veteran Joined: 1/10/2015 Posts: 961 Location: Kenya
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https://www.businessdail...8694-gn744qz/index.html
Quote:A Chinese firm has started building a 23.5 kilometre rail connecting the standard gauge railway (SGR) line to the old track in Naivasha under a multi-billion shilling contract that seeks to create seamless travel between the Mombasa port and Uganda.
China Road and Bridge Corporation (CRBC)— which constructed the $4.7 billion (Sh507.6 billion) SGR line from the port of Mombasa to Naivasha— is building the new short track and rehabilitating a decades-old line from Malaba on the border with Uganda to Longonot in Naivasha.
CRBC started work last week and has already built two kilometres of the new meter gauge line that will link SGR to the old track.
The firm together with Kenya Railways have eight months to complete the job, including the rehabilitation works.
Uganda is also said to be working on the reconstruction of the metre gauge railway line from Malaba to Kampala with funding from the European Union.
The upgrades for the two lines, Malaba-Kampala and Tororo-Gulu, will cost Uganda some Sh18 billion.
The renewed focus on the metre gauge line now dims hopes for fast-tracking of the Chinese-funded SGR, which was expected to reach Kisumu by 2022 and link it to a sea port for shipping of cargo to Uganda.
Proverbs 13:11 Dishonest money dwindles away, but whoever gathers money little by little makes it grow.
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