Kenya Railways launch 3 month promotional package with half flat tariffs to woo container importers to shift from roads to rails

Importers have been slow to shift from the roads to the rails claiming that the rail transport comes with several other hidden costs.

From Today cargo shippers will be able to haul their container from Mombasa to Nairobi for half the fee what they are currently paying, if they use the SGR that is.

Kenya Railways has launched a three-month promotional period running up to April 5 offering to haul containers at half the current tariff.

“Kenya Railways has introduced a three-month promotional tariff for container traffic on the SGR Freight Service. The promotional tariff applies to cargo between Port Reitz, the NRB Freight Terminal and the ICD, Embakasi,” the agency said yesterday.

During the period, the SGR freighters will pay a flat fee of Sh35,000 ($350) for a 20-foot container and Sh40,000 ($400) for a 40-foot container from Mombasa to Embakasi Inland Container Depot (ICD). The flat charges include cargo handling costs and returning of empty containers.

Prior to the promo, SGR used to charge a flat rate of Sh64,500 ($645) for a 20-foot container and Sh84,300 ($843) for 40-foot container, the low rates which it also introduced on a three-month basis.

Importers have however been slow to shift from the roads to the rails claiming that the rail transport comes with several other hidden costs, making it expensive in the long run.

On 5th January, after the first cargo train hauling 104 containers left Port Reitz Freight station in Mombasa for the Inland Container Depot in Nairobi, the second cargo train failed to leave the port because of lack of enough containers.

Kenya was betting on the Standard Gauge Railways to not only haul the economy to double figures but also reduce road accidents and  road wear.

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