KENYA AND UGANDA RAILWAYS EXPECTED TO CONTINUE RUN THE NARROW GAUGE RAILWAY
(Posted 02nd September 2017)
(Once upon a time … )
Following the transfer – in parts still ongoing it is understood – of assets by Rift Valley Railways to the owners of the two national rail lines, Uganda Railways and Kenya Railways, has it been confirmed that the railway line will continue to operate under the respective national mandates until further notice.
At least the Kenyan side has already indicated that they will not seek a new concessionaire for the operation of the railway line after the deal with RVR has fallen apart.
Initially signed in 2006 was the concession deal saddled with problems, initially through the eccentric and erratic behaviour of the representative of the South African consortium Sheltam Rail, one Roy Puffet before other issues then posed a challenge to the survival of the company over non performance vis a vis set targets.
Repeatedly reported about these issues here has the termination of the concession agreement now taken legal root and the transfer of assets by RVR to Kenya Railways and Uganda Uganda Railways appears to be underway.
Effective 01st of September will, at least in Kenya, the railway line now be operated by Kenya Railways staff – to what extend that will be is however still uncertain while in contrast not a word has been received from Uganda Railways, which crucially is responsible now for uplifting bulk cargo coming from the port of Mombasa to Kampala, at least for the stretch from the Kenya / Uganda border to the capital.
RVR had about 3.000 employees at the time the company lost the rail operating concession and their fate too now hangs in the balance. Ugandan workers of RVR had repeatedly staged wildcat strikes in the past and questions have been asked by users of the railway such as fuel companies, steel companies and edible oil manufacturers, who will from now on be responsible to deliver their cargos in time.
The two investors in RVR, Egypt’s Qalaa Holdings (formerly Citadel Capital) and Uganda’s business man Charles Mbire and key lenders are said to be facing a loss of the money they sank into RVR as, once all assets have been transferred to the national rail operators, there will be no more substance left to satisfy any remaining financial demands.
Watch this space for further updates over the future of what once upon a time was called ‘The Lunatic Express, aka The Iron Snake‘ – the only rail line until the full completion of the new SGR connecting Uganda to the main Indian Ocean port of Mombasa.
