FILE PHOTO | NMG
Kenya Railways has lowered cargo tariffs in an attempt to make Naivasha dry port economically viable even as a recent court ruling casts doubt on the future of Standard Gauge Railway (SGR).
In the latest move to attract transporters to use the Inland Container Depot (ICD) from Mombasa to Naivasha, Kenya Railways has reduced freight charges from $600 to $480 for a 20-foot container and from $850 to $680 for 40-foot container.
The rates, said Mr Mainga will run from June 2 for a period of 90 days, as the government seeks to shore up numbers after Uganda protested the compulsory use of the Naivasha ICD, with court putting an injunction last week on the compulsory use.
The success of the ICD is pegged on the cost of transport from Naivasha to Kampala and Mombasa to Kampala as shippers are keen to employ the mode that suits them.
KTA’s recommended rates to Kampala is $2,400, however, most of the trucks are charging $1,900 as a flat Rate for both 20ft and 40ft container while the rates given by Transport ministry recently put the cost from Kenya’s port city to Uganda at $2,180, comprising SGR from Mombasa to Naivasha and Road to Kampala.
