Tues 9th August 2022, Election Day
Indeed I can; but, as usual, it has been amusing to read your arguments.The figure of Sh. 8 per tonne-kilometre is not based on any economic-feasibility study carried out by the government. That's just a figure CPCS gave them last year. CPCS argued that in order to get market share, the rail should start by charging slightly less than the truckers. According to CPCS's studies, the truckers charge Sh. 9 to Sh. 11 per tonne-kilometer; so CPCS proposed Sh. 7 to Sh. 8 per tonne-kilometre to start with. Start because CPCS then recommended that once the rail had business, it should raise its prices to near those charged by the truckers. So, will truckers be able to compete on price? Will people "automatically" save big bucks by going from road to rail?
Just seen an advert by KTDA where they were charging 6.5shs per tonne per kilometre to transport fertlizers (74,000 metric tonnes). So SGR will have to go way down..maybe 5shs?
For cargo which isn't expected to be delivered fast, am wondering how SGR will be cheaper than RVR.In deed SGR uganda claim the freight cost will be below 5 USA cents per tonne/km. https://mobile.facebook.com/SGRUganda/photos/a.859817044053512.1073741828.843300635705153/970127246355824
In my opinion it costs much less to transport goods by rail than truck. One rail wagon wan take 5 trucks or more so imagine the savigs!!!
In deed SGR uganda claim the freight cost will be below 5 USA cents per tonne/km. https://mobile.facebook.com/SGRUganda/photos/a.859817044053512.1073741828.843300635705153/970127246355824