Kenya forcing importers to use costly new Chinese railway
Posted: 03 Dec 2019, 19:16
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World over, freight transport via railway is always cheaper in both short and long term aspects compared to roads but in Kenya the opposite seems to hold.
The main essence of borrowing heavily to build the standard gauge railway was to reduce cargo transport costs and time with an overall impact on improving ease of doing business...
The Transport ministry insists it will not back down on the closure of container freight stations (CFS), saying they have been used to sneak in drugs and other contraband.
Transport Cabinet Secretary James Macharia told a Senate hearing last week that the CFSs had also been used by unscrupulous importers and traders to evade taxes.
The facilities are used to store freight containers after ships dock before importers move them either by road or rail to their destinations...
In Summary
•The Senate Committee on Transport last week asked the transport ministry to allow the business community choose their preferred mode of transport.
•There has been anti-SGR demos in Mombasa every Monday for past 13 weeks as the business community protest against forced use of rail and the 'dying' Mombasa economy.