#Uganda finally also cancels #RiftValleyRailways concession


(Posted 09th October 2017)

The Ugandan government has demanded that Rift Valley Railways immediately hand over assets to Uganda Railways, months after the Kenyan government had taken a similar step, leaving majority shareholder Qalaa Holdings of Egypt – successors to Citadel Holdings – and a local minority shareholder of the company reeling from their losses.
The government has also demanded that the performance guarantee bond extended by a local insurance company be paid to them to the tune of 3 million US Dollars.
Although it is understood that RVR has sought arbitration the chances of succeeding are slim as the precedent was set by the Kenyan decision to terminate the long term rail deal, which RVR accepted.
Without the Kenyan link has RVR in Uganda no leg to stand on as access to the narrow gauge rail network across the border and all the way to Mombasa is now controlled by Kenya Railways again which will no longer cooperate with Rift Valley Railways after all ties were cut two months ago.
Clients of RVR in Uganda are said to be scratching their heads over rail access for their goods as the two national rail operators are apparently still finding their footing again of how to run the network and keep cargo flowing into Uganda but also from Mombasa to Nairobi and further upcountry.
Meanwhile will cargo services on the new standard gauge railway from Mombasa to Nairobi and vice versa commence in October as final touches are being put on the facilities to evacuate containers from the port of Mombasa onto the SGR rail system.