Author Topic: Nairobi-Naivasha - Railway to nowhere?  (Read 3699 times)

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38304
  • Reputation: 1074446
Nairobi-Naivasha - Railway to nowhere?
« on: January 07, 2021, 01:22:22 PM »
Yes it has doubtful ROI - unlike Nairobi-Msa - and will only be viable when entire section to Kampala.
https://www.the-star.co.ke/news/2021-01-06-sh162bn-naivasha-sgr-ill-advised-says-kimunya/

Offline audacityofhope

  • VIP
  • Enigma
  • *
  • Posts: 2146
  • Reputation: 5151
Re: Nairobi-Naivasha - Railway to nowhere?
« Reply #1 on: January 08, 2021, 02:47:09 PM »
Some folks believe that having failed to have the railway reach Kampala, Ouru did the next best thing: Create an inland depot at that nowhere place, exclusively for Ugandans to come pick their stuff rather than going to Mombasa.

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38304
  • Reputation: 1074446
Re: Nairobi-Naivasha - Railway to nowhere?
« Reply #2 on: January 08, 2021, 03:24:45 PM »
Yes beyond Nairobi - the next big source and destination of cargo is Kampala.
Naivasha Inland Depot was always part of it. This plus the proposed industrial park make sense - long term like Isiolo airport. Lamu port.
Uhuru failed by playing dangerous politics - and Chinese calculated the handshake-Uhuru2young political risks - and refused to lend.
So plan B.
The Chinese offered to extending old MGR - from Longonot to Inland - and therefore this good stop gap.

Now if Kenya SGR is not viable beyond Nairobi - Magufuli SGR Is not viable beyond Darussalam.


Some folks believe that having failed to have the railway reach Kampala, Ouru did the next best thing: Create an inland depot at that nowhere place, exclusively for Ugandans to come pick their stuff rather than going to Mombasa.


Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38304
  • Reputation: 1074446
Re: Nairobi-Naivasha - Railway to nowhere?
« Reply #4 on: January 08, 2021, 05:15:28 PM »
Unless they are thinking of mining - it will be one un-viable railway.

At least Nairobi - big city is 500kms from Mombasa - so that line is even profitable.

Beyond Nairobi - then it become doggy maths.

Kampala is the next big city - and that is at least 1000kms away - from Naivasha.

Offline Kadudu

  • VIP
  • Enigma
  • *
  • Posts: 4441
  • Reputation: 1411
Re: Nairobi-Naivasha - Railway to nowhere?
« Reply #5 on: January 09, 2021, 02:45:11 AM »
You are taking it for granted, that Tz's SGR is as badly planned and overpriced like Kenya's. Magafuli although a thickhead is more clever than the two clueless UhuRuto crew. The Tz SGR has been divided in phases and not just one company is building the wholeline. The paying terms are cheaper than Kenya's since ADB is financing major part of it.
Instead of focusing on Tz we should be looking at the mistakes we made and learn for them.

Yes beyond Nairobi - the next big source and destination of cargo is Kampala.
Naivasha Inland Depot was always part of it. This plus the proposed industrial park make sense - long term like Isiolo airport. Lamu port.
Uhuru failed by playing dangerous politics - and Chinese calculated the handshake-Uhuru2young political risks - and refused to lend.
So plan B.
The Chinese offered to extending old MGR - from Longonot to Inland - and therefore this good stop gap.

Now if Kenya SGR is not viable beyond Nairobi - Magufuli SGR Is not viable beyond Darussalam.


Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38304
  • Reputation: 1074446
Re: Nairobi-Naivasha - Railway to nowhere?
« Reply #6 on: January 09, 2021, 08:32:10 AM »
Not it's not cheaper, first it not viable, because 60% of all cargo in dar port, terminate right there in dar city, leaving only 40% to be transported through Tazara and this new line. Secondly they borrowed commercial loan from South Africa bank - that is going to hurt more.
They also built lower quality of rail - AREMA is equivalent to chinese grade 2 - ours is grade A.
Finally chinese loans are competitive with ADB loan.
Yes Uhuru took his 10%
You are taking it for granted, that Tz's SGR is as badly planned and overpriced like Kenya's. Magafuli although a thickhead is more clever than the two clueless UhuRuto crew. The Tz SGR has been divided in phases and not just one company is building the wholeline. The paying terms are cheaper than Kenya's since ADB is financing major part of it.
Instead of focusing on Tz we should be looking at the mistakes we made and learn for them.