SGR to start next year January;

[RV Pundit]

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When Ruto talked about SGR I think in early 2012 while Jubilee was yet to be formed; I thought he was joking; but alas kenya biggest infrastructural investment since independence is going live very soon. Kudos.

http://www.nation.co.ke/business/SGR-testing-set-to-start-in-January--says-Macharia/996-3345090-xv1xyd/index.html

[Georgesoros]

Great!
I hope I can get my mangoes and coconut from MSA cheaper!
Where does it end again? NRB.

[patel]

Sad to note the success of SGR is pegged on completion rather than benefits and opportunities delivered from such a mega project. 

[RV Pundit]

That I think is inclusive. Finishing this 4-5B dollar project 7 months ahead of schedule is pretty much unprecedented. This is very impressive. And second phase is starting next month...hopefully it can reach Naivasha, Kisumu and Malaba pretty soon...so we can begin on LAPSET and other mega infrastructure investment.

The pictures of SGR are here...
http://www.skyscrapercity.com/showthread.php?t=954002&page=157

Sad to note the success of SGR is pegged on completion rather than benefits and opportunities delivered from such a mega project. 

[MOON Ki]

When Ruto talked about SGR I think in early 2012 while Jubilee was yet to be formed; I thought he was joking; but alas kenya biggest infrastructural investment since independence is going live very soon. Kudos.

http://www.nation.co.ke/business/SGR-testing-set-to-start-in-January--says-Macharia/996-3345090-xv1xyd/index.html

Alas, indeed.   I couldn't have thought of a better word.   

Reminds me of an exchange on the purported benefits of the SGR.     One conclusion:

Interesting. I have heard gov sources repeat this claim that transport cost will reduce by 2.5 times several times. Yeah 20shs does sound like a lot...and unreleastic...and maybe somebody in gov is lying.

http://www.nipate.org/index.php?topic=3211.20

[Nefertiti]

Reducing transport cost by even a half would be a big achievement. It's a key industrial input. Now focus on power cost as well. This is MAJOR tick for Kenya and Jubilee.

[MOON Ki]

Reducing transport cost by even a half would be a big achievement. It's a key industrial input.

That is certainly true.    But by how much will the SGR reduce the costs?   

The 2.5 times is based on a bogus figure of Sh. 20 per tonne-kilometre for road.  The real figure appears to be around Sh. 10, which is why even RV Pundit admits that someone in the government might be lying.   So "even by half" would be around Sh. 5, which, from everything I have seen, is totally unrealistic. 

The basis of the current proposed  figure  is the consultant's recommendation that the SGR should start slightly below the road rates, to get market share, and then increase figures to around those of road rates.

It is possible that I have missed it, so I should ask: Do we have any report from GoK detailing the economic viability of the SGR, how much will be charged, a basis for the oft-cited "2.5 times reduction", any other figure for a "reduction", etc.?   

That said, it was not my intention to restart the SGR debate.   I just couldn't resist amusing myself on the "alas".   

[Empedocles]

Before one can even bother calculating the viability of the SGR, one important question still needs to be answered:

-  Was the purpose of the SGR primarily for the economic good of Kenya or, as Mutunga alleged, for lining the pockets of individuals?

[Kadudu]

I would say both but the latter accelerated the pace of the whole project and took the price to its limit.

Before one can even bother calculating the viability of the SGR, one important question still needs to be answered:

-  Was the purpose of the SGR primarily for the economic good of Kenya or, as Mutunga alleged, for lining the pockets of individuals?

[RV Pundit]

We need information on how they compare...price wise(per tonne per km)..of course we know about the time factor. If container now cost 100K to Nairobi from MSA..what will SGR charge?

[RVtitem]

We need information on how they compare...price wise(per tonne per km)..of course we know about the time factor. If container now cost 100K to Nairobi from MSA..what will SGR charge?

Tanzania quote that it will cost average kes. 6/tonne.km for Dar-kigali sgr, while passenger will cost around kes. 2300 from dar-kigali.

The figures should be close.

Yes...

"The importance of the SGR to Kenya is the potential dividend that will arise from bolstering infrastructure in the country. The government expects the project to reduce freight costs from $ 0.20 per tonne/km to $0.08 per tonne/ km. But the SGR is expensive.

www.businessdailyafrica.com/Opinion-and-Analysis/Why-the-standard-gauge-railway-is-not-cost-effective/539548-2977014-6cb6c4/index.html

[RVtitem]

Passenger transport will have to be subsidised in all cases. Else, it will be too expensive.

[RV Pundit]

What is the cost now. I think anything 8-10shs. So if TZ will do 6shs..maybe we will be there. That is reduction of 2shs..and not good enough.I doubt it will be 2shs per tonne per km. That will mean a container from MSA will cost 20,000 to be hauled to Nairobi.

Tanzania quote that it will cost average kes. 6/tonne.km for Dar-kigali sgr, while passenger will cost around kes. 2300 from dar-kigali.

The figures should be close.

Yes...

"The importance of the SGR to Kenya is the potential dividend that will arise from bolstering infrastructure in the country. The government expects the project to reduce freight costs from $ 0.20 per tonne/km to $0.08 per tonne/ km. But the SGR is expensive.

www.businessdailyafrica.com/Opinion-and-Analysis/Why-the-standard-gauge-railway-is-not-cost-effective/539548-2977014-6cb6c4/index.html