The Standard Gauge Railway has failed to achieve its goal of reducing container transportation costs by 30 per cent, a government committee has found.
The joint technical committee on the Improvement of Efficiency and Cost Effectiveness of Transportation of Cargo Using SGR said it costs an average 133.5 per cent more to transport cargo using the rail system.
Findings of the committee reveal that while moving goods via road costs Sh65,000 and Sh85,000 for 20ft and 40ft containers respectively, the average cost for transporting the same containers from Mombasa to Nairobi via rail is Sh142,000 and Sh212,000 respectively.
Inefficiencies in the SGR freight system, according to the report, are mainly as a result of duplication of roles by agencies involved, leading to increased processing time and higher cost of doing business.