Ethiopia's electrified SGR goes live.

[RV Pundit]

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http://www.skyscrapercity.com/showthread.php?p=135701884#post135701884

[RVtitem]

Awesome stuff.

Is it possible for Kenyans and ethiopian to bid and successfully construct similar projects in other african countries with world class experience obtained thus?

[RV Pundit]

Not possible. The benefits of competitive transport cost & time will be enough for now. Ethiopia are doing more rail lines and Kenya need to do a catch up here.

Awesome stuff.

Is it possible for Kenyans and ethiopian to bid and successfully construct similar projects in other african countries with world class experience obtained thus?

[Kim Jong-Un's Pajama Pants]

Awesome stuff.

Is it possible for Kenyans and ethiopian to bid and successfully construct similar projects in other african countries with world class experience obtained thus?

They would have to actually acquire the skills.  Are there any being transferred beyond driving forklifts and bulldozers?

[RVtitem]

Awesome stuff.

Is it possible for Kenyans and ethiopian to bid and successfully construct similar projects in other african countries with world class experience obtained thus?

They would have to actually acquire the skills.  Are there any being transferred beyond driving forklifts and bulldozers?

I think it would be easier to transfer skills for example if Kenya railways hired some english speaking, Chinese technical staff/engineers and paid them well to supervise local engineers and tradesmen. The government would therefore have to fully fund a section of the railway so as to avoid restrictions due to chinese loans.

Let's see how phase II of SGR kenya will be done.

[RVtitem]

Some dreadfull western news:
http://m.france24.com/en/20161005-chinese-built-railway-opens-linking-ethiopia-djibouti

Ethiopia has a long way to go, however. The International Monetary Fund estimates that growth, at a massive 10.2 percent in 2015, will plunge to 4.2% this year amid the worst drought in 30 years.

Furthermore, Ethiopian Tegray government should control the demos underway by sharing pie with disgruntled major tribes. Otherwise, foreign agents might take advantage of the situation to destabilize the country.

[RV Pundit]

What is the cost of freight? We know the time is being slashed from 2 days it take a truck from Djibouti to Adis to few hours.

[RVtitem]

There has been no sign of a feasibility study or figures from government officials on ethiopias sgr so far. This could be because they don't use english there.

By my guestimate its probably around 3/15 of Kenyas freight cost, if we assume 1unit of power is 3 us cents in ethiopia and 15 us cents in kenya. Labour, capital cost, and maintenance is also higher for kenya diesel SGR.

So if we also assume that kenya sgr will be 8 us cents per ton.km, then ethiopia will be circa 1 us cents per ton.km

[bryan275]

Did I read somewhere that the Ethiopian SGR is cheaper per mile than the sub par Kenyan one?

[RV Pundit]

Water under the bridge.

Did I read somewhere that the Ethiopian SGR is cheaper per mile than the sub par Kenyan one?

[RV Pundit]

Yeah it was brilliant decision to use electricity - they might cut down the cost of operation & save forex - our diesel run trains will be more expensive. I can't seem to find any figures on the expected cost of freight.

There has been no sign of a feasibility study or figures from government officials on ethiopias sgr so far. This could be because they don't use english there.

By my guestimate its probably around 3/15 of Kenyas freight cost, if we assume 1unit of power is 3 us cents in ethiopia and 15 us cents in kenya. Labour, capital cost, and maintenance is also higher for kenya diesel SGR.

So if we also assume that kenya sgr will be 8 us cents per ton.km, then ethiopia will be circa 1 us cents per ton.km

[Kadudu]

Answer the question.

Water under the bridge.

Did I read somewhere that the Ethiopian SGR is cheaper per mile than the sub par Kenyan one?

[Kadudu]

Let me answer it for you.

[RVtitem]

If GOK connects Kenya sgr with Ethiopia sgr or we connect kenya roads to ethiopia, there's a good possibility that it might become cheaper to import through Djibouti port than Mombasa.

This will let North Kenya (say Nakuru and above) be serviced by Djibouti port.

[MOON Ki]

There has been no sign of a feasibility study or figures from government officials on ethiopias sgr so far. This could be because they don't use english there.

By my guestimate its probably around 3/15 of Kenyas freight cost, if we assume 1unit of power is 3 us cents in ethiopia and 15 us cents in kenya. Labour, capital cost, and maintenance is also higher for kenya diesel SGR.

So if we also assume that kenya sgr will be 8 us cents per ton.km, then ethiopia will be circa 1 us cents per ton.km

I have seen such figures repeatedly thrown around here---almost always by a source whose "facts" should always be double-checked---for example:

Our "factory" fundamentals are screwed..power at  best 14 cent usd per KWH(for large commercial) and labour at 120USD per month...totally impossible when our competitors are offering 3 cent per KWH and 20usd per month salary!

My question: to what extent does the figure reflect current reality?

[RVtitem]

There has been no sign of a feasibility study or figures from government officials on ethiopias sgr so far. This could be because they don't use english there.

By my guestimate its probably around 3/15 of Kenyas freight cost, if we assume 1unit of power is 3 us cents in ethiopia and 15 us cents in kenya. Labour, capital cost, and maintenance is also higher for kenya diesel SGR.

So if we also assume that kenya sgr will be 8 us cents per ton.km, then ethiopia will be circa 1 us cents per ton.km

I have seen such figures repeatedly thrown around here---almost always by a source whose "facts" should always be double-checked---for example:

Our "factory" fundamentals are screwed..power at  best 14 cent usd per KWH(for large commercial) and labour at 120USD per month...totally impossible when our competitors are offering 3 cent per KWH and 20usd per month salary!

My question: to what extent does the figure reflect current reality?

I think those were picked from the media e.g. : www.the-star.co.ke/news/2016/02/11/ethiopia-threatens-kenyas-investment-appeal-analyst_c1292890

Electricity costs at an average of Sh3.06 (three US cents) per kilowatt-hour is cheaper than Kenya's range of between Sh13.33 and Sh20.59 based on customer classification, consuming more than 50 units.

[Georgesoros]

For $3billion thats a lot of project. Its worth it.
Kenya's is $5billion and counting.

[RV Pundit]

Just read Ethiopia has borrowed 17B USD from chinese..so we can get more credit from them.

[RVtitem]

Just read Ethiopia has borrowed 17B USD from chinese..so we can get more credit from them.

I feel that our problem isn't that we don't borrow enough. I think it is that most of what we borrow is stolen. 

[RV Pundit]

Not china loan. They don't give you the cash. Their bank will wire the money directly to the chinese contractor. So whatever is stolen is very little..which is why those project are visible. The same with WB/ADB projects. Gov stealing happen only on things treasury has full control.