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The meter gauge rail road is still a big valuable asset. They are still in use in many parts of the world. With modern diesel engines it can still generate serious cash from tourism and even specialized cargo.
plus it has a bigger network going into industrial areas it can even offer port to factory warehouse deliveries in Mombasa,Nairobi and Thika industrial areas
 

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RVR officially loses concession

http://www.businessdailyafrica.com/news/RVR-25-year-rail-contract-cancelled/539546-4040056-qsi6wfz/index.html

Kenya Railways has finally terminated Rift Valley Railways’ (RVR) 25-year contract to run the Kenya-Uganda railway after the State corporation failed to resolve long-standing business disputes with the concessionaire.
Kenya Railways managing director Atanas Maina and his RVR counterpart, Isaiah Okoth, Monday agreed that RVR will hand back operations, employees and assets of the 100-year-old railway to the agency within 30 days.
The deal was sealed at the High Court, where RVR had in January rushed to contest Kenya Railways’ impending termination of the contract.
Kenya Railways had cited failure to pay Sh600 million concession fees and missed cargo haulage targets as reason for the planned termination.

“It is hereby ordered by consent: That the concession agreement dated January 23, 2006 be and is hereby terminated today July 31,2017,” the High Court said in its ruling Monday.
 

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ici maintenant & toujours
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Why don't they hand over the commuter rail to John Holland as well to manage for at least 10 years. This way, they can harmonize the schedules between Madaraka Express and the Lunatic Express, both for passenger and cargo. KR should not operate the service!
 

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Why don't they hand over the commuter rail to John Holland as well to manage for at least 10 years. This way, they can harmonize the schedules between Madaraka Express and the Lunatic Express, both for passenger and cargo. KR should not operate the service!
It would make sense because lets face it the reason KR gave the concession to RVR was because they sucked at managing the old railway. However before they do anything can they please liase with NAMATA first.

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ici maintenant & toujours
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one ferry can carry 22 tankcars containing between 894,000 and 1,020,000 litres - Uganda imports about 2 billion litres per year
How long does it take for the ferry to cross-over from Kisumu to Jinja? Also, do you also know how many trucks have been replaced by 1 ferry?
 

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one ferry can carry 22 tankcars containing between 894,000 and 1,020,000 litres - Uganda imports about 2 billion litres per year
Thanx, as usual you're a source with encyclopedic data base.
Let's say Uganda opts to evacuate its petroleum needs via pipeline to Kisumu of which bulk of it's supply arrive.
How practical is it to evacuate same quantities from Kisumu to Jinja/Port Bell by these wagon ferry. What's the optimal capacity right now.
 

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How practical is it to evacuate same quantities from Kisumu to Jinja/Port Bell by these wagon ferry. What's the optimal capacity right now.
Well there's the Kawuku fuel depot currently under construction with a storage capacity of 70 million litres compared to the one in Jinja holding just 30 million litres (10 million for petrol, 10 million for diesel, 10 million for kerosene). The depot is connected to a jetty and is able to be served by ship directly increasing from the jetty of the Kisumu depot. The Jinja depot might probably be served by the rail ferry but most fuel imports will shift from the Eldoret depot to the new one


kawaku.png
 

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Well there's the Kawuku fuel depot currently under construction with a storage capacity of 70 million litres compared to the one in Jinja holding just 30 million litres (10 million for petrol, 10 million for diesel, 10 million for kerosene). The depot is connected to a jetty and is able to be served by ship directly increasing from the jetty of the Kisumu depot. The Jinja depot might probably be served by the rail ferry but most fuel imports will shift from the Eldoret depot to the new one


View attachment 328765
Thanx for that piece of information. By Kawuku, I'm assuming that's Ggaba side.
In future I see it being moved via the proposed Southern Bypass that will form sort of a circular road.
Meanwhile, it's good old Ggaba road and the Freeway Spur.
Seeing Mike's picture, I think I can connect the dots with the frantic activities in Kisumu by his friend from there to upgrade the infrastructure there.
 

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Mnadhimu Mkuu
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KRA wins Sh1.6bn tax row against Rift Valley Railways

Friday October 02 20


The Kenya Revenue Authority (KRA) has won a tax battle with Rift Valley Railways (RVR) after a tribunal ordered the consortium to pay Sh1.6 billion.


The Tax Appeals Tribunal chaired by Mr Mahat Somane dismissed the petition by the concessionaire stating that some of the items imported by RVR, among them locomotives and diesel engines, were not tax exempt as alleged.


“This therefore leaves room for one reasonable conclusion; that the appellant (RVR) was not granted remission in respect of the locomotives and as such the taxes as assessed by the respondent (KRA) are properly due and payable by the appellant,” the Tribunal ruled.


KRA told the tribunal that it did an analysis of the company’s business between 2011 and 2016 in respect of customs duty, value added tax, withholding tax and withholding VAT. The taxman later in 2017 issued an assessment notice for taxes amounting to Sh1.69 billion.


The company, however disputed the claim saying it had obtained VAT remission from Ministry of Finance for some of the items it imported including train simulator system, tamping and ballast distributing machines, knock down kits and diesel engines.


Further, RVR said part of the tax demanded were transit material for goods destined for Uganda and KRA had misapplied the law by seeking to standard rate the revenue attributed to transportation of goods in transit.


But KRA argued that the company undervalued freight charges on six imported locomotives in December 2014.


The taxman further accused RVR of fraudulent remission of VAT on importation of tamping and ballast distributing machines, claiming it had obtained remission from the Ministry of Finance.


The tribunal ruled that the failure to withhold tax as required was a breach of the law on the part of the RVR, a move that was occasioned by its miscomprehension of the effects of the repeal of Section 25A of the VAT Act.


According to the tribunal, a perusal of the documents showed that some items the company claimed were exempted had been left out by the Treasury in a letter dated August 15, 2011.


“Accordingly, we find that the taxes assessed by the respondent in respect of the locomotive, spare parts, diesel engines, train simulator and the tamping machine are owing to the public purse and should be settled by the appellant,” the tribunal ruled.


The company, however got a reprieve after the tribunal quashed tax debt of Sh56.7 million after providing documents to support payment.


“The appellant’s withholding tax liability in respect of local and imported services should be reduced by Sh56,717,291 for which it has correctly supported,” the tribunal ruled.
 

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Mnadhimu Mkuu
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KRA wins Sh1.6bn tax row against Rift Valley Railways

Friday October 02 20


The Kenya Revenue Authority (KRA) has won a tax battle with Rift Valley Railways (RVR) after a tribunal ordered the consortium to pay Sh1.6 billion.


The Tax Appeals Tribunal chaired by Mr Mahat Somane dismissed the petition by the concessionaire stating that some of the items imported by RVR, among them locomotives and diesel engines, were not tax exempt as alleged.


“This therefore leaves room for one reasonable conclusion; that the appellant (RVR) was not granted remission in respect of the locomotives and as such the taxes as assessed by the respondent (KRA) are properly due and payable by the appellant,” the Tribunal ruled.


KRA told the tribunal that it did an analysis of the company’s business between 2011 and 2016 in respect of customs duty, value added tax, withholding tax and withholding VAT. The taxman later in 2017 issued an assessment notice for taxes amounting to Sh1.69 billion.


The company, however disputed the claim saying it had obtained VAT remission from Ministry of Finance for some of the items it imported including train simulator system, tamping and ballast distributing machines, knock down kits and diesel engines.


Further, RVR said part of the tax demanded were transit material for goods destined for Uganda and KRA had misapplied the law by seeking to standard rate the revenue attributed to transportation of goods in transit.


But KRA argued that the company undervalued freight charges on six imported locomotives in December 2014.


The taxman further accused RVR of fraudulent remission of VAT on importation of tamping and ballast distributing machines, claiming it had obtained remission from the Ministry of Finance.


The tribunal ruled that the failure to withhold tax as required was a breach of the law on the part of the RVR, a move that was occasioned by its miscomprehension of the effects of the repeal of Section 25A of the VAT Act.


According to the tribunal, a perusal of the documents showed that some items the company claimed were exempted had been left out by the Treasury in a letter dated August 15, 2011.


“Accordingly, we find that the taxes assessed by the respondent in respect of the locomotive, spare parts, diesel engines, train simulator and the tamping machine are owing to the public purse and should be settled by the appellant,” the tribunal ruled.


The company, however got a reprieve after the tribunal quashed tax debt of Sh56.7 million after providing documents to support payment.


“The appellant’s withholding tax liability in respect of local and imported services should be reduced by Sh56,717,291 for which it has correctly supported,” the tribunal ruled.
At least they will have to pay taxes, i wish there were other severe penalties these conmen would have been subjected to.
 
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