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Full steam ahead as SGR set to revitalise interior for business

President Uhuru Kenyatta chats with Deputy President William Ruto as cargo wagon passes by during the launch of Standard Gauge Railway in Mombasa on May 30, 2017.

Photo credit: File | DPPS

What you need to know:

  • Tea from Kericho and Limuru will get to the Mombasa auction house faster and cheaply.
  • Passenger traffic between the two cities is expected to increase as more people find it easier to travel in comfort at a pocket-friendly price.
  • The establishment of heavy industries could only depend on the railway to move equipment, raw materials or finished products.

A single transformative event can shape the destiny of a nation.

It can upend convention and leapfrog several developmental stages.

The commissioning of the standard gauge railway between Nairobi and Mombasa is one such event.

Since the Lunatic Express, linking Mombasa Port and Uganda through the heart of Kenya, 120 years ago, there has not been any other such ambitious and impactful project.

Although the 500km SGR line has faced a barrage of criticism from various quarters -- ranging from procurement, whether it’s a priority to the above “normal” cost of building it -- when all is said and done, the benefits will by far outweigh the negative sentiments.

INVESTMENTS

The Kenya Private Sector Association and the Federation of Kenya Employers, of which I have served in various roles, have over the years told the government that infrastructure is a pre-condition for private sector investments.

Fix infrastructure and private sector money will follow.

The government needs a pat on the back, not condemnation.

The linkage between infrastructure and economic growth has been established, and railways play a key role in driving growth.

INDUSTRIALISATION

In America, the advent of industrialisation was marked by heavy investment in infrastructure, and in particular railways, which ensured that goods were moved easily, efficiently and cost effectively.

The network of railways sparked economic growth. The establishment of heavy industries could only depend on the railway to move equipment, raw materials or finished products.

The SGR is also expected to spur growth. It will act as a central artery, coupled with the existing road network, opening up these areas for increased commerce.

CREATE JOBS

One of the counter-arguments doing the rounds is that cargo trains going back to Mombasa will be empty, negating the very essence of the investment. That need not be case.

The railway’s efficiency and price differential will attract investors in value addition, meaning that there will be many more finished goods destined for the export market.

This will create jobs and spur growth in the hinterland.

Apart from ferrying cargo from the port to the ICD in Naivasha, it will now be easier and cheaper to transport food from the central highlands to the coast.

Tea from Kericho and Limuru will get to the Mombasa auction house faster and cheaply.

ACCESS MARKET

Fruits and beef from the Rift Valley and central highlands will have easy access to the port.

A farmer in Kinangop will access the coastal market which has been the preserve of brokers.

Passenger traffic between the two cities is expected to increase as more people find it easier to travel in comfort at a pocket-friendly price.

Over the years, domestic tourism has stuttered.

Hotels only survive because of the Christmas/Easter crowd. A weekend at the coast will no longer be the preserve of the rich who can afford to fly.

SHORT JOURNEY

It will be a short four-hour journey. The second phase of the SGR to Naivasha will open up an ICD to not only serve businesses in Nairobi, but also the neighbouring countries of Uganda, Rwanda and Democratic Republic of Congo.

The final phase to Malaba linking Kenya and Uganda can only mean better tidings for Kenyan manufacturers who have been hampered by prohibitive transportation cost.

Hauling goods by road has resulted in a huge maintenance.

The start of cargo haulage next year will mean fewer trucks on our roads.

IMPORTS

The old railway hauls 1.5 million tonnes annually, compared to the SGR’s estimated 22 million, accounting for 80 per cent of the total imports (25 million tonnes).

At least 1,500 trucks will have to be redeployed, since they will no longer be required to haul cargo from Mombasa.

It is quite telling that it has taken more than a century to lay a single new track of railway.

For now however, it is full steam ahead, as we race to catch up with countries that realised a long time ago the central role that a railway plays in the development cycle.

Mr Gitahi is the chairman of Oxygene MCL. [email protected]