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Old September 8th, 2009, 03:12 PM   #1
nai guy
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Mombasa-Nairobi-Kampala-Kigali Railway | KE/UG/RW Joint Infrastructure Project | Approved

http://www.nation.co.ke/News/-/1056/...2/-/index.html
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Imagine travelling at 160km per hour... in a train!

The prospect of this dream becoming a reality in Kenya grew on Monday when Kenya Railways Corporation advertised a tender for a standard gauge line to run from Mombasa to Malaba.

Such a line would shorten the train journey from Nairobi to Mombasa from 10 to only three hours.

Prospective transaction advisers and design consultants have until January 15, 2010, to forward their bids.

Assignment

Their proposed assignment includes project marketing, investor identification and supporting selection of consultants to monitor detailed design, building and commissioning of the railway.

“Construction is scheduled to commence in May 2011,” the corporation’s managing director, Mr Nduva Muli, said in a two-page paid up advertisement.

The railway line, which will stretch from Mombasa to Malaba on the Kenya/Uganda border with a branch to Kisumu, would see double-decker passenger trains introduced in the region.

According to the government’s timetable, the Mombasa-Nairobi section of the line will be complete by 2013, Nairobi-Kisumu by 2016, and Nairobi-Malaba by 2016.

“The government recognised the need to build the new modern railway in order to increase capacity and improve efficiency, cost-effectiveness and competitiveness of the transport sector,” the advertisement says.

The move signals the government’s admission that the 25-year concession of the current Kenya-Uganda railway to Rift Valley Railways, a consortium led by South Africa’s Sheltam Ltd, in 2006 has not lived up to its expectations.

The concession to RVR is the subject of a court case after Kenya Railways Corporation expressed a desire to terminate the contract.

In this year’s budget, Sh3 billion was allocated to initiate the revamping of the over 100-year old railway system.
This is some great news. We might get high speed trains even before US does.
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Old September 8th, 2009, 06:30 PM   #2
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finally we are heading somewhere wacha ikulane
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Old September 8th, 2009, 09:49 PM   #3
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National high speed rail line in the works(another source)

Kenya Railways Corporation (KR)plans to build high speed rail lines across the country . / Dan Obiero
By Jim Onyango (email the author)
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Posted Wednesday, September 9 2009 at 00:00

Plans by the national railway operator—Kenya Railways Corporation (KR)— to build high speed rail lines across the country could further sideline the Rift Valley Railways—a South African consortium— that runs the current passenger and freight service.

KR is seeking to construct a standard gauge rail system to replace the 100-year- old rail line that was laid by the colonial government which has been a lifeline for the manufacturing sector in Kenya and Uganda but has proved inefficient in handling increased cargo flow from the Port of Mombasa.

The inefficiencies of the railway system led the governments of Kenya and Uganda to sign a concessionary deal with the South African consortium—Rift Valley Railways in 2006 to turn around rail services in the region, but it soon ran into trouble after recording losses.

Court tussle
In the concession, RVR was to run the 900-kilometre Kenya-Uganda railway line up to 2031 for freight and 2011 for passenger services. Attempts by the government to annul the RVR deal to manage the railway line led to a court tussle.

RVR narrowly avoided cancellation of its 25-year concession in August when the high court granted it an extension to run the railway system despite the government having obtained orders to end the contract.

The managing director of the KR, Mr. Nduva Muli, says plans to build a new standard gauge rail network will not affect its concessionary agreement with RVR.

“The concession agreement with RVR does not stop KR from building a new railway outside the conceded assets since it is evident that the operation of the current railway even after upgrading and taking all optimisation measures, is unable to meet the demand,” said Mr. Muli.

During the 2009 financial year the port of Mombasa handled 17 million tonnes of cargo. Kenya Railways projects that by the year 2030 the port will handle over 30 million tonnes.

“The existing metre gauge railway operated by RVR has limitations in terms of maximum capacity and efficiency. Therefore KR is planning ahead to meet the transport demands of the country and the region by commencing the programme for the development of the new high capacity standard gauge railway” said Mr Muli.

The government-owned KR has issued an international tender seeking companies or organisations to provide advisory services and a preliminary design of the proposed standard gauge railway line between Mombasa and Malaba with a branch line in Kisumu.

Standard gauge
The Corporation is seeking companies or organisations to design the proposed new standard gauge rail line, in a move that analysts said would alienate the RVR from rail transport business.

Mr Muli however says RVR will be incorporated in early discussions to find a way forward in the building of the standard gauge rail network.

“Discussions are being held with the concessionaire to agree on the way forward. In addition one of the Terms of Reference for the transaction advisor will be to advise KR and the government on how best to handle matters pertaining to the existing concession during construction and operation of the new Standard Gauge Railway” said Mr Muli.

Mr. Muli is expected to tell a news conference today that the construction of the standard gauge rail line will start in May 2011.

“The government intends to enhance capacity in the transport sector to improve efficiency, cost effectiveness and competitiveness of the sector to facilitate rapid economic growth” Kenya Railways said in its international tender announcement.

Revolutionise transport
“It is envisaged that the railway line will be extended to Uganda and the Great Lakes region,” said Kenya Railways.

According to the railways company, the planned railway system will revolutionise the transport sector as the railways company intends to introduce 160kph speed passenger coaches and 120kph freight wagons.
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Old September 8th, 2009, 10:46 PM   #4
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As much as I am a fan of highspeed trains, this one sounds like a pipe dream.

Where do they expect to get the money to build it? A railway costs to build from one million to six million US dollars per kilometer depending on terrain. This railroad would be 1000+ Km, with lots of complex terrain (rift valley, hundreds of rivers and other places to build bridges...). Where are the 5 billion usd to build this? If they want to start in 2011, they should already have good idea where to get the money from.

The second problem is the power source. Fast diesel trains are expensive to operate. But this country doesn't have a stable electric source needed for economical electric trains....
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Old September 9th, 2009, 01:04 AM   #5
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Quote:
Originally Posted by keitai View Post
As much as I am a fan of highspeed trains, this one sounds like a pipe dream.

Where do they expect to get the money to build it? A railway costs to build from one million to six million US dollars per kilometer depending on terrain. This railroad would be 1000+ Km, with lots of complex terrain (rift valley, hundreds of rivers and other places to build bridges...). Where are the 5 billion usd to build this? If they want to start in 2011, they should already have good idea where to get the money from.

The second problem is the power source. Fast diesel trains are expensive to operate. But this country doesn't have a stable electric source needed for economical electric trains....
you think they dont know that?? or are they just stupid people building castles in the air? i find your critisism to be out of line.
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Old September 9th, 2009, 01:05 AM   #6
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Originally Posted by desert burner View Post
wacha ikulane
DB wewe una vichekesho kibao.
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Old September 9th, 2009, 03:52 AM   #7
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Originally Posted by nairoberry View Post
you think they dont know that?? or are they just stupid people building castles in the air? i find your critisism to be out of line.
I think his right man. High Spead rail are damn expensive to build first, and then maintaining is another story.

I would happy if it really become a reality. but i just think it just sweet dreams.
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Old September 9th, 2009, 05:22 AM   #8
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I think his right man. High Spead rail are damn expensive to build first, and then maintaining is another story.

I would happy if it really become a reality. but i just think it just sweet dreams.
im not saying his critism is wrong, im saying that they (kenya railways) already know that its expensive and they know what makes it not easy to build it. so why is he stating something that kenya railways already knows and understands? i for one appreciate the fact that kenya railways is atleast having an idea and trying to follow through with it.
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Old September 9th, 2009, 06:50 AM   #9
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I believe the feasibility study has already been done by reliable consultant. This plans have been their for along time and the government have been preparing to build a standard gauge railway line to replace the current narrow gauge which is a bottleneck.

The focus is not on the initial cost of investment but on the return on investment. Since Kenya is major gateway to east and central africa through its port, relying on road transport and an inefficient railway network could lead to severe consequences of the Kenya economy and those of our neighbours. That's why the Kenyan government in collaboration with other East African governments are planning to build a standard gauge railway line. Tanzania is also building one.

To learn more about a standard gauge railway line read more from this link
http://en.wikipedia.org/wiki/Standard_gauge

You will also be surprised that the so called 'Fast diesel trains' are more fuel efficient and therefore less expensive to operate. Am sure because they are newer, their spare parts are readily available hence cheaper.

Don't forget they are able to make more trips because they are faster, they can carry more cargo and people therefore make more money.

Enough said. The railway building begin!!
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Old September 9th, 2009, 09:12 AM   #10
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Has anyone been following the infrastructure bonds lately? And Kengen have also sought for more capitalization. Im thinking that once the recession ends most likely mid 2010, and the Kenyan economy rebounds to its former levels, the sky is the limit. What we need to do is form profitable rail companies and Kenyans will rush to throw their money into them.
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Old September 9th, 2009, 09:20 AM   #11
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Has anyone been following the infrastructure bonds lately? And Kengen have also sought for more capitalization. Im thinking that once the recession ends most likely mid 2010, and the Kenyan economy rebounds to its former levels, the sky is the limit. What we need to do is form profitable rail companies and Kenyans will rush to throw their money into them.
You can't wait to see the market bounce back, hey. same here. EAC, SADC will be growing like mushrooms.
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Old September 9th, 2009, 10:33 AM   #12
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Unhappy

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Originally Posted by keitai View Post
As much as I am a fan of highspeed trains, this one sounds like a pipe dream.

Where do they expect to get the money to build it? A railway costs to build from one million to six million US dollars per kilometer depending on terrain. This railroad would be 1000+ Km, with lots of complex terrain (rift valley, hundreds of rivers and other places to build bridges...). Where are the 5 billion usd to build this? If they want to start in 2011, they should already have good idea where to get the money from.

The second problem is the power source. Fast diesel trains are expensive to operate. But this country doesn't have a stable electric source needed for economical electric trains....
i love and laugh how our people always to outdo each other to trash any positive idea and development that is raised. i have been protagonist always when it comes to fair and healthy criticism, but i realised that most Kenyans can not draw the line what entails healthy criticism and outright bashing anyway the claims of power problems will be something of the past once all this energy projects both public and private materialized from 2001 we will be having surplus.

if you read the article carefully it was explicitly revealed investor will be sourced, when investors show an interest in any kind of projects, they carry out feasibility and viability studies and also contingency plan if they faced any kind of bottlenecks in the process therefore your fear is unfounded, therefore the issue of power and natural environment has been considered.

if i am not wrong although they have not clarified the project will be BOT model i guess, (build operate and transfer) where the investor will control the project for certain period in which after recouping his/her investment he/she will transfer the ownership to the state. believe me being business expert the project will be damn viable considering the average 8% growth in the region before the recession. considering the return on investments and payback period this project will be attracting a lot of investors. for the time being let sit and wait
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Old September 9th, 2009, 05:25 PM   #13
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Anyone considered that even the current railway line was seen as something that could not be accomplished when it was first conceived (and im glad it happened otherwise there would be no country called Kenya). In my mind, this is the Lunatic express II. Eventually, it has to get built.
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Old September 9th, 2009, 05:44 PM   #14
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granted the project will cost upwards of 300 billion shillings, however, the project is broken down in stages with the final section, the eldoret malaba section being completed in 2016. At the same time the other project, Lamu to Juba and mandera to Addis ababa is being run by the transport ministry. All these projects are a part of the vision 2030 and will be implemented.
By the way the money is there, 70% of Kenya's economy is classified as " informal" meaning not taxed. What this implies is that 30% of Kenyans are able to raise 500 billion shillings ( $7billion ). I was part of that 70% doing what all Kenyans call "hustling" and they are able to pay their rent, eat and drink almost every night. The potential for explosive growth is just about to be unleashed, watch this space.
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Old September 9th, 2009, 07:29 PM   #15
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Rail to make Kenya trade hub (another source)

http://www.nation.co.ke/News/-/1056/655200/-/umt89w/-/
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Old September 11th, 2009, 04:04 AM   #16
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A good idea with a very ambitious time-table. You raise pertinent questions and the answers will come in 2010 when the bids come in. Speeds of 100 miles per hour may be fast for Kenya, but they hardly qualify as 'high-speed': My preferred term would be 'higher-speed.' At any rate, that's progress; progress that will go through some serious trial.
Had KR not concessioned the running of the current rail to RVR., the process could have been smoother. Given that RVR may continue to operate the current lines until their contract expires, it will require the government to obtain land for the new railroad. Going by what has transpired in the past, this will be a lengthy process that will see many court battles on issues of imminent domain and compensation. All this will undoubtedly baloon the cost above the 320 billion quoted.
I read the Nation article and left wondering whether the goals set are genuine, or whether being lofty is what the MD for KR is after. KR was unable to manage the simple system they have now and opted to contract it out to a failed corporation, but we are now supposed to believe that their 'competency' will prevail. The capacity limitation with the current railroad, as given by the MD as reasons for building the new line, does not settle well with me. The current system is simply run so inefficiently that its potential is not being realized. Has anyone watched the number of cars on any given train in Kenya versus those of say the US? We have had such bad roads that transport by train would have taken a shorter time yet KR never capitalized on this.



Quote:
Originally Posted by keitai View Post
As much as I am a fan of highspeed trains, this one sounds like a pipe dream.

Where do they expect to get the money to build it? A railway costs to build from one million to six million US dollars per kilometer depending on terrain. This railroad would be 1000+ Km, with lots of complex terrain (rift valley, hundreds of rivers and other places to build bridges...). Where are the 5 billion usd to build this? If they want to start in 2011, they should already have good idea where to get the money from.

The second problem is the power source. Fast diesel trains are expensive to operate. But this country doesn't have a stable electric source needed for economical electric trains....

Last edited by JARIBU; September 12th, 2009 at 05:29 AM.
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Old September 11th, 2009, 04:11 AM   #17
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I doubt that the poster you are referring to meant to assert that KR management is stupid. Poor decisions, or poorly thought out ideas are not the preserve of only the stupid. Remember that it's the same management that gave RVR the concession to destroy the current railroad system. Were they stupid when they did it? Maybe!


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Originally Posted by nairoberry View Post
you think they dont know that?? or are they just stupid people building castles in the air? i find your critisism to be out of line.

Last edited by JARIBU; September 11th, 2009 at 04:24 AM.
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Old September 11th, 2009, 07:54 PM   #18
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Originally Posted by JARIBU View Post
I doubt that the poster you are referring to meant to assert that KR management is stupid. Poor decisions, or poorly thought out ideas are not the preserve of only the stupid. Remember that it's the same management that gave RVR the concession to destroy the current railroad system. Were they stupid when they did it? Maybe!
HUH?????? they chose the investor that had the best plan and money to back it up who turned out not to do the best job. did u want kenya railways to look into the future and see how rvr will mess up? OMG i cant even believe im responding to ur statement.
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Old September 12th, 2009, 05:26 AM   #19
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In business there is something called "due diligence" and KR did not do theirs. I can come up with a good plan and money but that does not mean I have the right qualifications to perform the required functions. If they got the RVR part wrong using the same matrix(es), what will prevent them from getting it wrong again? The more we continue to give our public corporations excuses the more mediocre they get.

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Originally Posted by nairoberry View Post
HUH?????? they chose the investor that had the best plan and money to back it up who turned out not to do the best job. did u want kenya railways to look into the future and see how rvr will mess up? OMG i cant even believe im responding to ur statement.
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Old September 12th, 2009, 09:29 AM   #20
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I think its a very good idea for Africa to hv this kind of train. Africa is a large continental
and desert area that low in connection capable (highway).
And this HSR is a must for the poeple of the Africa to keep stay in touch.
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