Kenya Railroad News and Discussion

[BUTEMBO21]

This thread is solely dedicated to Kenya's Railroad News and Discussion.

Thank you.

[I.M Boring]

I don't think there is all that much to talk about on this subject really. There is a railroad being built between Nairobi and the Airport, and there are plans to transform the railroad between Mombasa and Kisumu and make it a standard gauge, but otherwise...

I actually hope that after the road construction, they focus on pedestrian trails, since that is how most Kenyans travel. After they can decide between airports and the rail system. Kenya needs new wide gauge rail tracks to accommodate faster trains which carry more passengers.

[I.M Boring]

I found something worth posting:
http://www.theeastafrican.co.ke/news...z/-/index.html

[Dhuks]

Originally Posted by I.M Boring

I found something worth posting:
http://www.theeastafrican.co.ke/news...z/-/index.html

Uganda is one of the most important market for kenyan goods and it would be very naive to budge the chinese way on this issue sweet as their money is!

[desert burner]

Kenya Railways and National Housing Corporation have entered into a joint venture that will see the rail firm open its land for construction of affordable homes in urban areas.

The rail company has about 320 acres of land surrounding the rail stations in Nairobi, Kisumu and Mombasa — which currently lies idle—and has been scouting for investors to help develop office blocks, light manufacturing industries, residential homes and shopping malls.

Under the joint venture, Kenya Railways will provide the land, the biggest costs item in housing construction, and part financing, and earn annual leases.

NHC say the deal will allow it to increase the supply of affordable homes because it has land that has been one of its main hindrance to boost supply of homes that will help cool the run-away prices.

“The joint venture will save us the cost of buying land at market rates,” said James Ruitha, the NHC managing director, adding that the savings will be transferred to consumers in the form of cheaper homes.

NHC has also been seeking financing partners in a business model that see a number of investors own a single real estate project. Already, the two State companies have sealed a deal involving a prime land owned by Kenya Railways in the upmarket Kileleshwa where they will construct apartments that will sell at Sh8 million each compared to market rates of Sh10 million.

The Business Daily could not get a comment from Kenya Railways, but earlier the firm had said it will form partnerships with private investors to develop a real estate project worth Sh256 billion on its 320 acres of land surrounding the rail stations in Nairobi, Kisumu and Mombasa.

The firm is targeting to raise about Sh1 billion annually in land leases and use the money to develop new rail infrastructure as the current structures will be developed by Rift Valley Railways that was granted a 25-year concession to run the Kenya-Uganda line and five years for the passenger services.

Besides NHC, it still looking for a consortium of investors with finances and experience in joint real estate projects — a pointer that it’s keen on foreign investors. This plan comes at a time when institutions are making deep forays into the real estate market including Centum Investment, National Housing Corporation, National Social Security Fund , insurance companies and Renaissance Capital, the Moscow-based investment bank, which plans to spend billions of shillings in the real estate market.

Construction boom




Kenya is experiencing a property boom that has seen home and office block prices rise 3.5 times in the past decade — a return that has also caught the eye of foreign investors.

Rapid urbanisation, population growth and expansion of the middle class have emerged as drivers of the property market that is riding on nearly three decades of under investment.

The residential homes, shopping malls, restaurants and the industrial park will create a fresh income stream for the cash-strapped rail firm.
http://www.businessdailyafrica.com/C...o/-/index.html

[Kenguy]

This is big. These guys have so much empty prime land in virtually every major urban area in Kenya. And usually these empty lots happen to be next to the CBD's of Nairobi, Kisumu, Nakuru e.t.c.

Its a splendid idea. Lease out the land, get the cash and modernise.

[ciceroji]

There goes our future subway system and modern rail terminals. I hope they keep future use in mind. It will cost a fortune later to get it back.

[ernestombayo7]

I was expecting Kenya railways to offer truly affordable homes. 8 million for an apartment is not cheap.3 million is cheap.

[xJamaax]

Originally Posted by ciceroji

There goes our future subway system and modern rail terminals. I hope they keep future use in mind. It will cost a fortune later to get it back.

c/s

[èđđeůx]

Originally Posted by ciceroji

There goes our future subway system and modern rail terminals. I hope they keep future use in mind. It will cost a fortune later to get it back.

I'm confused, is this a bad or good thing for future subway and rail?

[Rongai]

This is contained in the Nairobi Metropolitan spatial draft about the future plans for Nairobi.

Project: Preparation of Spatial Plan for Nairobi Metropolitan Region Page 9.33
Document: 2010063/UPD/ Draft Plan April, 2011
Chapter 9 R0
9.11.7.4 Underground Metro (MRTS)
In the identification of Rail Line (corridors), it has been the assumption that the line will run
as elevated system along the reserve of the road corridors. However, there may be some
objections from urban aesthetics that the elevated track structure would be a physical
obstruction for view of cityscape, particularly in the CBD area and at other locations where
heritage or historical landmarks exist. The system design and materials have developed so
high and sophisticated that it is possible to build elevated MRTS which can add value to
cityscape rather than downgrade it. Also, underground system is extremely costly and the
city may not afford to invest such large sums at this stage. However, if aesthetic values are
prime and funds are not major constraint then, the railway lines may run underground,
particularly in and around the CBD.
The probable underground stretches of corridors are:
 CBD Section of Thika LRT route
 CBD section of Juja LRT corridor
 CBD section of Jogoo LRT corridor
 CBD section of Ngong Road LRT corridor
 CBD section of Waiyaki Way LRT corridor
The 5 lines may start/end at NRS with arrangements for transfer amongst them, with other
rail lines and other modes. Also, the 5 lines may be formed into 2 lines, one from Limuru –
Kenya Soil Survey – Westlands – NRS – JK Airport – Mavoko and the other from Thika –
Kenyatta University – Kasarani – NRS – Kenyatta Hospital – Dagoretti – Ngong Town, with
crossing at NRS.
The feasibility study will evaluate these underground corridors vis-à-vis elevated lines and
make suitable recommendations.

[ciceroji]

Originally Posted by èđđeůx

I'm confused, is this a bad or good thing for future subway and rail?

It is a bad thing if they sell too much land which they might need later.

[ernestombayo7]

Originally Posted by Rongai

This is contained in the Nairobi Metropolitan spatial draft about the future plans for Nairobi.

Project: Preparation of Spatial Plan for Nairobi Metropolitan Region Page 9.33
Document: 2010063/UPD/ Draft Plan April, 2011
Chapter 9 R0
9.11.7.4 Underground Metro (MRTS)
In the identification of Rail Line (corridors), it has been the assumption that the line will run
as elevated system along the reserve of the road corridors. However, there may be some
objections from urban aesthetics that the elevated track structure would be a physical
obstruction for view of cityscape, particularly in the CBD area and at other locations where
heritage or historical landmarks exist. The system design and materials have developed so
high and sophisticated that it is possible to build elevated MRTS which can add value to
cityscape rather than downgrade it. Also, underground system is extremely costly and the
city may not afford to invest such large sums at this stage. However, if aesthetic values are
prime and funds are not major constraint then, the railway lines may run underground,
particularly in and around the CBD.
The probable underground stretches of corridors are:
 CBD Section of Thika LRT route
 CBD section of Juja LRT corridor
 CBD section of Jogoo LRT corridor
 CBD section of Ngong Road LRT corridor
 CBD section of Waiyaki Way LRT corridor
The 5 lines may start/end at NRS with arrangements for transfer amongst them, with other
rail lines and other modes. Also, the 5 lines may be formed into 2 lines, one from Limuru –
Kenya Soil Survey – Westlands – NRS – JK Airport – Mavoko and the other from Thika –
Kenyatta University – Kasarani – NRS – Kenyatta Hospital – Dagoretti – Ngong Town, with
crossing at NRS.
The feasibility study will evaluate these underground corridors vis-à-vis elevated lines and
make suitable recommendations.

I am afraid it is highly unlikely Nairobi will be having an underground train system in the near future.But these are good plans which should have been implemented years ago.

[desert burner]

The Board of Directors of the African Development Bank (AfDB) has approved a $40 million (Sh3.56 billion) loan to finance the Rift Valley Railways (RVR).
In a statement posted on its website, the bank said the five-year $246 million (Sh21.89 billion) capital investment programme involves two concessions to fund a rail network running from Mombasa to Kampala in Uganda.
The loan will support the region’s plan to shift from road to rail so as to ease the burden on the roads, as well as enhance the bank’s efforts to contribute to major infrastructure development in the region.
It is estimated that on average, eight per cent of goods are transported by rail compared to 92 per cent by road in this region.
While the East African Community transport policy calls for a transition from roads to rail in the transportation of goods. The rail sector in both Kenya and Uganda face multiple constraints, including old equipment and infrastructure owing to its old age – over 100-years-old.
"The RVR has the potential to significantly increase freight transport as a result of expanded capacity, faster train and improved reliability of rail assets," said AfDB.
The bank said the refurbishment and operation of the RVR is expected to simultaneously improve the quality and lower the cost of rail freight services in East and Central Africa.
For instance, the volume of goods transported is expected to more than double to 3.3 million tonnes per annum by 2015, while marginal costs are expected to drop by up to 30 per cent.
The project is expected to generate significant revenue for the Kenyan and Ugandan governments in the next 15 years and have positive environmental effects by reducing the volume of goods transported by more polluting truck services.
AfDB said the loan to support the rehabilitation of RVR is a top development priority for both Uganda and Kenya.
Bank’s strategy
The project aligns explicitly with the bank’s funding strategy for both countries, as well as the bank’s regional integration strategy for Eastern Africa.
"It is in harmony with the bank’s strategic priority to expand Africa’s economic infrastructure, as well as current efforts to increase financing from the bank’s privatesector window in low-income countries," explained AfDB.
AfDB spearheaded the environmental and social impacts due diligence on behalf of the lenders group.
The bank also provided substantial technical guidance to RVR in developing the Environmental Health Safety Audit Report, the Resettlement Action Plans, and other measures required under the funding terms.
http://www.standardmedia.co.ke/busin...20to%20Kampala

[desert burner]

The planned Sh17.8 billion bond issue by the Kenya Railways Corporation (KRC) has received a major boost after the Cabinet approved a proposal to raise funds through the local capitalmarkets to finance the upgrade of the Nairobi Commuter rail system.
The latest sets a centre-stage for the issuance of the debt instrument whose proceeds will go towards financing KRC’s plans to build a seven-kilometre link from the Jomo Kenyatta InternationalAirport to the city centre.
The move aims at easing Nairobi’s infamous traffic jams, which investors complain of choking commercial activities in East Africa’s largest economy.
The bond, which is being offered to both local and international investors, is expected to further excite Kenya’s fixed income market, which has been vibrant, buoyed by plenty of liquidity within the banking system.
Market players argue that issuance of bonds by government agencies and local authorities could be the next area of growth in a market that features government bonds and a few corporate issues.
Mr Mugo Kibati, Director General of Kenya’s Vision 2030 Delivery Secretariat, the Government’s long-term development plan, said the bond would go to the market within the first three months of next year.
BOND ISSUE
"The issue is likely to be launched in the first quarter of 2012," Kibati told the Financial Journal last week.
Dubbed the metropolitan rail transport system, the project is part of KRC’s Railway Masterplan, which seeks to overhaul the entire rail transport system in the country by 2050.
"Investors are ready and willing to take it up. We have showcased the bond to both local and international investors," said Kibati.
The Nairobi Commuter rail project would be fully financed by proceeds from the bond issue.
But the cost of purchasing train coaches estimated at between $120 million and $150 million would be incurred by the eventual operator of the system.
In this year’s budget, Deputy Prime Minister and Minister for Finance Mr Uhuru Kenyatta allocated an additional Sh1.9 billion towards the construction of a new branch line from Embakasi Railway Station to Jomo Kenyatta International Airport.
Uhuru said the completion of this line would make commuting to and from the airport faster, comfortable and cheaper.
It will also benefit urban commuters living in Kitengela, Athi River, Embakasi, Pipeline, Imara Daima and others residing along Mombasa road.
He also allocated Sh1 billion to initiate upgrade for the Nairobi – Ruiru via Makadara, Dandora, Githurai and Kahawa railway line to expand passenger services by at least ten fold, thereby making it affordable to many Kenyans commuting daily to work in the city and reduce congestion in the City .
Last year, the Treasury also allocated Sh1.9 billion for the upgrade of the Nairobi Commuter Rail system.
PARKING SPACE
The first phase of the project, which is being funded by the Exchequer, will see a commuter railway station built in Syokimau, and an acquisition of ultra modern locomotive engines and wagons to the tune of Sh1.6 billion.
The Sh250 million-Syokimau station which, will act as a link between the road and the railway system will have a parking space to hold up to 1,000 cars, where motorists will park and take trains to Nairobi’s central business district.
It will also be a dropoff and pickup point for commuters using public service vehicles.
The acquisition of new engines and wagons is expected to cost Sh300 million, while the railway line between the CBD and Jomo Kenyatta International Airport will cost Sh1 billion.
The rail project also includes an upgrade to 160-kilometres of existing track in Nairobi.
The Nairobi facelift will see the retiring of the current old and worn out commuter trains that mainly operate in the morning and evenings and ferry a mere five million commuters annually.
The inefficiencies of the existing network have been blamed for the transport disorder and overcrowding in Nairobi caused by Matatus.
The first phase of the Nairobi Commuter rail project was scheduled to begin in January but was delayed until February pending approval from the Environmental Management Authority.
The project has since kicked off with the Syokimau Station under construction.
The new rail system, which will connect Nairobi’s CBD with JKIA and a proposed Golf City along Uhuru Highway, will see the introduction of modern coaches commuting at the intervals of 30 minutes.
http://www.standardmedia.co.ke/Insid...39156&cid=457&

[èđđeůx]

Foreigners race for rail firm’s Sh256bn real estate project

Four international financiers have applied to invest jointly with the Kenya Railways Corporation (KRC) in a Sh256 billion real estate plan as foreign investors eye the country’s booming property market.

The State-owned rail agency has been scouting for investors to help develop office blocks, hotels, light manufacturing industries, parking bays and shopping malls on its 320 acres of idle land surrounding the rail stations in Nairobi, Kisumu and Mombasa.

“We are looking at the four applicants and we shall reveal their details at the appropriate time. All that is important now is that they have very strong offers,” said Mr Nduva Muli, the firm’s managing director in an interview with the Business Daily without giving details.

Under the joint venture, Kenya Railways will provide the land which is shaping up to be the biggest costs item in housing construction and part financing, expected to earn the firm an estimated Sh1 billion annually in land leases, critical to support its heavy financial needs.

“We are investing in such projects so that we stop our over reliance on the government. KR will use the proceeds from the land lease to develop the railway infrastructure and the terminus.” said Mr Muli.

This comes at a time of property boom in the country that has seen home and office block prices rise 3.5 times in the past decade — a return that has caught the eye of foreign investors.

Rapid urbanisation, population growth and expansion of the middle class have emerged as drivers of Kenya’s property market that is riding on nearly three decades of underinvestment.

Kenya Railways has opened its massive land to private investors, joining the list of institutions such as the National Social Security Fund (NSSF), Centum Investment and pension schemes in rushing to tap the huge returns from the booming property market.

In Nairobi, under KRC the investor is expected to put about Sh120 billion in building shopping malls, restaurants, a manufacturing park, and two hotels with a capacity to accommodate 3,000 people.

In Mombasa, the investors will build an international trade centre, office blocks, shopping malls, and three hotels with conference facilities able to accommodate 3,000 people at a cost of Sh80 billion.

The investors will build Sh60 billion car parking complex, shopping malls, restaurants, and two hotels able to accommodate 2,000 people in Kisumu.

The projects will create a fresh income stream for the cash strapped rail firm as well as dramatically transform Kenya’s real estate landscape, especially that of Nairobi, Mombasa and Kisumu.

BusinessDailyAfrica

[èđđeůx]

Railways to Expand Commuter Services

KENYA Railways has announced plans to develop commuter rail services in Kenya's three cities. It will start train services within the Nairobi Metropolitan, Mombasa and Kisumu City. The transporter said the development of the Nairobi Metropolitan is at implementation stage while the development of Mombasa and Kisumu is at concept stage. Phase one of the Nairobi route will cover 100 kilometres and will provide modern commuter rail services between Nairobi Railway station and Ruiru, Embakasi Village, Jomo Kenyatta Airport and Kikuyu. This phase will cost Sh16 billion according to managing director Nduva Muli.

Phase two will extend the services to Thika, Lukenya and Limuru while phase three will provide services on new rail lines to be built to Ngong, Kiserian and Ongata Rongai to the South, Kiambu to the North and Ruai to the North East of Nairobi. "The project is aimed at providing fast, reliable, safe and affordable commuter rail services within the Nairobi Metropolitan," Muli said when he led a team of Government officials on a site tour of Syokimau railway station currently under construction. "The whole project is due to be completed by the end of 2014." He said the Syokimau- Nairobi line will help decongest Mombasa Road by transferring some of the commuter traffic to the railway. The facility will serve commuters from Syokimau, Mlolongo, Athi River, Kitengela, Machakos and Kajiado..

AllAfrica

[èđđeůx]

Rift Valley Railways Investments secures AfDB loan

Citadel Capital Platform Company Africa Railways says its subsidiary Rift Valley Railways Investments has achieved a positive Earnings Before Net Interest and Tax (EBITDA) for the first time in its recent history.

And the African Development Bank has approved a US$40 million loan (Sh3.4 billion) to finance Rift Valley Railways Investments (RVRI).

RVRI of Kenya-Uganda has reported US$674,000 (Sh57.28 million) in EBITDA for the month of June 2011.

This marks the first time RVRI has recorded a positive EBITDA since Citadel Capital, the leading private equity firm in the Middle East and Africa with US$ 8.7 billion in investments under control in 15 industries spanning 14 countries, purchased an indirect stake in the company in December 2009. Following a shareholder restructuring in mid-2010, the Firm currently owns a 51 per cent stake in RVRI via its Platform Company in the Africa railways sector, Africa Railways.

RVRI CEO Brown Ondego confirmed this, attributing the positive earnings to the dedication of his team and the support from the shareholders. “This is indeed a significant start to RVRI’s turnaround process” Brown said.

RVRI has a 25-year concession to operate a century-old rail line with some 2,352km of track linking the Indian Ocean port of Mombasa in Kenya to the interiors of Kenya and Uganda, including the capital city of Kampala.

Daily Nation

[èđđeůx]

Is Kenya on the verge of experiencing a rail boom in the coming years?

[Kenguy]

Originally Posted by èđđeůx

Is Kenya on the verge of experiencing a rail boom in the coming years?

Looks like it.