East Africa rail news

[John Ashworth]

TANZANIA REVIEWS CONCESSION

Posted on 26 June 2009 by Railways Africa Editor

According to a report in The Citizen (published in Dar-es-Salaam), the Tanzanian government is reviewing the business plan, concession agreement, memorandum and articles of association of Tanzania Railways Limited (TRL), prior to seeking a loan for rail improvements from the World Bank’s International Finance Corporation (IFC).

Minister for finance and economic affairs Mustafa Mkulo was quoted telling parliament that reviewing the articles would be mandatory before government commits itself to guaranteeing a loan that TRL plans to take from the Indian government.


Faraja Jube and Vicent Mnyanyika of The Citizen write: “MPs had urged the government to terminate or review the TRL contract with Rites. They said early indications showed that the Indian firm and TRL management had failed to run the company. Thus it was causing massive losses to the government.”


The government plans, Mkulo said, to expand the gauge of the Dar-Isaka railway [about 950km] from one metre to 1,435mm line to increase its efficiency. “He said there were also plans to acquire donor funding to construct the Isaka-Rwanda-Burundi railway.

”The cost for the Isaka-Rwanda-Burundi railway line is not yet known but some donors, including the World Bank, African Development Bank, the BNSF company from the US, Japan and a European bank have shown willingness to fund it,” he said.

KENYAN GOVT URGED TO USE RAIL

Posted on 26 June 2009 by Railways Africa Editor

The Kenya National Highways Authority (KenHA) has asked the government to revive the “dormant” Kenya-Uganda railway to improve the transport of bulk goods from the port of Mombasa.

Briefing the press at Molo during a weekend tour of road projects in the Rift Valley area during June, board chair Mrs Hannah Muriithi and director general Meshack Kidenda expressed concern at the under utilisation of the line - the most efficient method of moving heavy cargo. The use of rail, they pointed out, would reduce the incidence of accidents and the theft of goods in transit.

UGANDA RAIL UPGRADE

Posted on 26 June 2009 by Railways Africa Editor

According to Kenyan finance minister Uhuru Kenyatta, quoted in the East African (published in Nairobi), the building of a new railway from Kampala to Mombasa is expected to begin in the “last quarter of the next financial year” at an estimated cost in excess of $US37.5 million, but the amount to be contributed by the two governments “is not, however, clear.” The paper adds: “The current line, operated by Rift Valley Railways, has been hit by intermittent conflicts that have interrupted its operations on several occasions.”