SGR doing so well so far...

[RV Pundit]

SGR to Naivasha 70% - this one will not repay itself unless Chinese build the Naivasha industrial park - it has to go all the way to Malaba to make economic sense.
https://www.businessdailyafrica.com/news/Nairobi-Naivasha-standard-gauge-rail-70pc-done/539546-4653758-14dbythz/index.html

[RV Pundit]

So I did simple maths.
1B shs per month is opex.
Revenue SGR can get from passengers is 2,000 *1,000*30 = about 60M per month.
For Cargo - they are doing 8 trains -each pulling 108 containers - around 750 containers -at btw around 25-35K promotional offer.
Daily -22.5m - monthly - around 700m.
So give and take - SGR is doing 800M revenues - against 1B Opex.
Now imagine the cost and time savings - from 80-100k per container to 35K - SGR is already saving us 1.5-2B shs per month. The money doesn't go to SGR/KR - but the economy.

If it get to 1M containers - 3,000 containers daily to Nairobi alone - we are talking nearly 5 times - 10B a month or 100B shs cost saving a year.

[Pragmatic]

So I did simple maths.
1B shs per month is opex.
Revenue SGR can get from passengers is 2,000 *1,000*30 = about 60M per month.
For Cargo - they are doing 8 trains -each pulling 108 containers - around 750 containers -at btw around 25-35K promotional offer.
Daily -22.5m - monthly - around 700m.
So give and take - SGR is doing 800M revenues - against 1B Opex.
Now imagine the cost and time savings - from 80-100k per container to 35K - SGR is already saving us 1.5-2B shs per month. The money doesn't go to SGR/KR - but the economy.

If it get to 1M containers - 3,000 containers daily to Nairobi alone - we are talking nearly 5 times - 10B a month or 100B shs cost saving a year.

[RV Pundit]

Now you're a shrink. Common sense - using SGR as of today (promotional offer & all that) is cheaper by nearly 3-4 times and way faster. You don't need a phd in economics to understands the multiplier effect such cost+time saving can have in the economy.

[hk]

Now you're a shrink. Common sense - using SGR as of today (promotional offer & all that) is cheaper by nearly 3-4 times and way faster. You don't need a phd in economics to understands the multiplier effect such cost+time saving can have in the economy.

And its cheaper because its being subsidized by taxpayers majority of them dirt poor. What about that burden in the economy?

. T

[RV Pundit]

I am sure once they've dealt with teething problem - they should be able to levy break-even rates. They don't have to make profit but as long as they can meet opex and be able to repay the loan - it's a winner for me.

And its cheaper because its being subsidized by taxpayers majority of them dirt poor. What about that burden in the economy?

. T