https://www.kenyatalk.com/index.php?threads/jubilee-development-kpa-mombasa-kilindini-port-to-make-kshs-15-4-billion-profit.113266/es, if you listen to nation media propaganda you will be misled.
In 2018, SGR was able to pay for its 12 billion annual operations thanks to freight service revenue. This is despite the fact that for six months the service was just doing 1 pair trip as business adjust to it. By Jan 2019 it was doing 14 pairs trips. Githeri media created a headline of 10 billion loss instead. The question is where in the world is a railway expected to make a profit in 1 year. Its built for 100 years operations.
In 2019, the second full years of operations, its monthly performance shows it will pay for its operations Kshs 12 billion and actually on course to make between Kshs 28 billion to 38 billion as well. This is simply because its great haul of Dec 2018 has continued in Jan-Feb-Mar-Apr-May 2019. Still 15 cargo freight pairs daily but the variety of cargo includes high premium costs payments fro general cargo like steel and clinker. Cargo volumes are also up. Await a surprise once the half year results are released by CCCC. It may actually break even this year or come very close to it. What's is most impressive is 0% downtime in one year. No single trip has delayed or been cancelled. Instead nation media again become mischievous, they picked KNBS report and only highlighted the container traffic revenue instead of both container and general cargo comvined revenue. They then ran headlines that SGR has revised revenue downwards and it has failed. Whoever is paying them is very crafty and has very deep pockets. However their window for propaganda is about to end as more revenue collection statements come out to show success. Normally it was expected that it will take at best 5 years to break even for a railway project and that is why we have the bulk of the loan on 10 years grace period. The loan is split into three categories. The first is an immediate loan paid annually. The second is a short term loan which we started paying after completion of the project. Luckly former President Kibaki had introduced the Railway Levy Fund in 2010. Every import pays 1.5% of the invoice value to this fund. This year it will collect 27 billion. This two loans are comfortably been paid by the Railway levy fund and they actually have at least 10 billion remaining. The balance is what is user for land acquisition for the SGR corridor. Lastly the last loan is a concessionary long term loan at 2% that has a grace period of 10 years. So let nobody lie that we can't pay for it. However if we break even this year or the next then we are the clear to continue with construction to Malaba. The final maths at the end if June will make that decision easy.
Topic: SGR 2nd Annivessary (Read 2922 times)