By Paul Wafula A ‘free’ feasibility study by China Roads and Bridges Corporation (CRBC) on the Standard Gauge Railway (SGR) proposed a Sh4,500 fare for passengers between Nairobi and Mombasa — about 10 times the current railway fare — for the project to be viable. However, the proposal in 2011 was rejected by Kenya Railways Corporation with Nduva Muli, then the firm’s managing director terming the fare “unattainable”. “The proposed tariff at $0.10 per person-km flat rate (Sh4,500 Nairobi–Mombasa is unattainable for now, particularly comparing it with current train and bus fares at Sh450 and Sh800 respectively. The position becomes worse when taxi fares from the proposed terminal stations at Changamwe and Embakasi to CBDs are included. In fact, the proposed passenger tariff is higher than airfare,” Muli said in his comments on the results of the feasibility study to the then Transport PS Cyrus Njiru.

[quote=a4architect.com]http://www.standardmedia.co.ke/?articleID=2000103526&story_title=kenya-railways-rejected-proposed-fares-between-nairobi-mombasa&pageNo=2

The govt can still not see how ridiculous this SGR project is. Kes 4,500 fare from msa to nbo is unreasonably high.

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So according to Muli the SGR should just do cargo(I would love this if most of the trailers can be driven off the highways)to remain afloat?How long is the repayment period?

Whilst KQ's JamboJet is 2,850/-.

Hii reli kwani iko nani wajameni!!!!!

What will be the passenger fare from Nbi to Msa once the line is operational?

http://www.standardmedia.co.ke/?articleID=2000103526

KR has, however, dismissed this argument, saying through cross-subsidisation — cargo trains subsidising passenger trains — the railway will be able to return a substantial margin to investment.

The cross-subsidisation argument also discounts details of a dossier presented to Parliament that said the project would need at least Sh18 billion in taxpayer subsidies every year to be profitable. The document titled “Separating Fact from Fiction on Standard Gauge Railway” said it would not be possible to remain afloat, repay the loan and meet its operating costs while returning a profit to the operator without taxpayer money.

“An examination of the current cost of moving a 20ft container by road or rail from Mombasa to Nairobi at $780 ($1,950 to Malaba) shows that to repay the debt, the SGR will need to charge six times the current road or rail rates even before counting a profit margin for the (presumably private) operator,” said the dossier.

From April 2 to April 8, a delegation led by Chen Yun - Vice President of CCCC and commander-in-chief of Mombasa-Nairobi Standard Gauge Railway Project, in the company of CRBC President Lu Shan, paid a working visit to Kenya. During the visit, the delegation inspected the work of Kenya Office, and met Chinese ambassador to Kenya Liu Xianfa and Commercial Counselor Han Chunlin, the delegation led by Zhang Xiangchen - Assistant Minister of Commerce who also paid a visit to Kenya, and Nduan Mulli - permanent secretary of Ministry of Transport and Infrastructure of Kenya.


From April 2 to April 3 when inspecting the work of Kenya Office, the delegation visited Nairobi South Station of Mombasa-Nairobi Standard Gauge Railway Project and Nairobi Southern Bypass Project and listened to the detailed work report given by Sun Liqiang and Li Qiang - Vice Presidents of CRBC at Kenya Office. Mr. Chen fully affirmed the achievements CRBC made and put forward the following requirements for the future development of the Office: firstly, it should study the Company’s strategy transformation and change the traditional business model and profit model; secondly, it should consider moderate diversification in the aspect of overseas operation and drive the structural adjustment through investment; thirdly, it should pay attention to the industry import in the aspect of urban complex development and provide an approach for China’s excess capacity transfer; fourthly, it should pay attention to the urban mass transit and enter it as soon as possible to cultivate the market.


For the next-step work arrangement of Mombasa-Nairobi Standard Gauge Railway Project, Mr. Chen also put forward five requirements: firstly, accelerate the design speed and improve the design quality; secondly, determine the construction units as soon as possible; thirdly, pay attention to the risk prevention and consider risk control as a key point of the full life cycle of the project; fourthly, enhance the management efficiency and completely eradicate the manipulation in the aspect of management through informatization; fifthly, be ready for participating in the bid for operation of Mombasa-Nairobi Standard Gauge Railway.

Mr. Chen stated that Mombasa-Nairobi Standard Gauge Railway was of great significance to CRBC, CCCC and the country and that all the participation units of the Group should complete this project well with a high sense of political responsibility and mission. President Lu Shan stated that all the employees of the Company should carefully carry out Mr. Chen’s instruction in development strategy of Kenya Office and the next-step work arrangement of Mombasa-Nairobi Standard Gauge Railway Project, proceed with confidence, keep up its spirit and forge ahead, and play a role of bridgehead in practicing the “CCCC with five identities” strategy overseas, realizing the transformation and upgrading of CCCC and firstly becoming a globally first-class enterprise.

On April 4, the delegation made an official visit to Chinese ambassador to Kenya Liu Xianfa and Commercial Counselor Han Chunlin. During their talk, Mr. Chen expressed his thanks to the embassy and economic division for their long-term support for CRBC and stated that CRBC would make new contributions to building Mombasa-Nairobi Standard Gauge Railway to be a high-quality project, spreading Chinese culture and consolidating the friendship between China and Kenya. Ambassador Liu Xianfa said that the political and economic situation of Kenya was well-developed at present and that Kenya made “Vision 2030” Development Plan and would greatly develop the infrastructure construction in the future. He also stated that the government of Kenya paid much attention to the cooperation with China and that CCCC and CRBC would have a large development space in Kenya. The embassy and Economic Division would spare no effort to provide assistance to the smooth implementation of Mombasa-Nairobi Standard Gauge Railway project as always.

On April 6, a delegation led by Zhang Xiangchen - Assistant Minister of Commerce who also visited to Kenya paid a special visit to Kenya Office and held a working meeting there. At the meeting, Mr. Zhang stated that Mombasa-Nairobi Standard Gauge Railway Project was an image project of “Going Global” of China in the new era and was of great strategic significance, that CCCC, as one of Fortune 500 firms, had the strength and experience to complete this project well and that the Ministry of Commerce and the Economic Division would give full support for it. He hoped that CRBC would consider the later operation of Mombasa-Nairobi Standard Gauge Railway and that Mombasa-Nairobi Standard Gauge Railway was not only “constructed by China”, but also “operated by China”. Mr. Chen said, “CCCC pays much attention to Mombasa-Nairobi Standard Gauge Railway Project and will mobilize the whole Group to organize and implement this project. At present, the preliminary preparation for this project is being carried out in an orderly manner. Once the loan agreement is signed, the construction of this project will be carried out comprehensively as planned.” President Lu Shan said, “Mombasa-Nairobi Standard Gauge Railway Project is highly concerned by the heads of both China and Kenya. We will, with the great support of such ministries and commissions as the Ministry of Commerce and based on the resources and strength of CCCC, build Mombasa-Nairobi Standard Gauge Railway Project to be a ‘signature project’ in East Africa and even the whole Africa with good tenacity, fighting spirit and pioneering spirit.”


On April 7, when meeting Nduan Mulli - permanent secretary of Ministry of Transport and Infrastructure of Kenya, Vice President Chen Yun expressed his thanks to the Ministry of Transportation of Kenya for its support for Mombasa-Nairobi Standard Gauge Railway Project and hoped that the Ministry of Transport and Infrastructure could continue to give support to the follow-up project cooperation. Nduan Mulli spoke highly of CCCC and CRBC’s great efforts and contributions to the improvement of Kenya’s infrastructure. He said, “Mombasa-Nairobi Standard Gauge Railway is of great significance to the economy and politics of Kenya and it is a top priority project of Kenya. The Ministry of Transportation of Kenya will strengthen the coordination in such aspects as tax exemption and land requisition and demolishing which may affect the project progress so as to guarantee the smooth implementation of the project.”

At least 5,000 foreign workers will be shipped into the country to undertake the construction of the 609km standard gauge railway from Mombasa to Nairobi

Am sure our politicians will have something to say about this

Are we that under skilled 5000, thats alot of people