Kenya Railways Corporation (KRC) has announced that it will review the promotional tariff for its SGR freight service upwards with the increased charges set to take effect in July.
The promotional tariff was introduced in January as the government sought to woo traders and transporters to use the SGR.
Kenya Railways business, commercial and operations team leader James Siele disclosed that they were already in negotiations with stakeholders to decide on the new rates.
“We are working together with the Kenya Shippers Council and cargo owners to see how best we can adjust these rates. We cannot talk about the margins at this moment but all we know is that it will be in the best interest of the market,” he stated.
The promotional tariff was initially scheduled to end on April 4 but this was extended to June 30.
[caption caption="File image of an SGR cargo train"]
[/caption]
Under it, freighters have been paying a flat fee of Sh35,000 for a 20-foot container and Sh40,000 for a 40-foot container from Mombasa to the Inland Container Depot (ICD) in Embakasi, Nairobi.
It also costs Sh25,000 for KRC to transport a 20-foot container from the ICD to Mombasa and Sh30,000 for a 40-foot container.
The rates are, however, not inclusive of cargo handling and returning empty containers.
The announcement on increased rates comes days after the free storage period at the ICD was reduced from eleven to four days in what the Kenya Ports Authority (KPA) said was a move to clear a backlog of about 1,700 containers.
“What we want is to have a sustained business so that we do not lose some of the gains we have made in as far as freight business is concerned in this country,” Siele explained.
[caption caption="President Uhuru Kenyatta inspecting a section of the SGR"]
[/caption]
