Truck Companies Under Threat After Murkomen Launches New SGR Cargo

Kenya has begun to receive 50 wagons meant for the Standard Gauge Railway (SGR) to bolster the operations of the Madaraka Express Freight Service. 

This was announced on Monday, February 5 by Transport Cabinet Secretary (CS) Kipchumba Murkomen who termed this a key milestone for the country and the region as it seeks to improve rail services and efficiency. 

The CS added that a second shipment of 250 wagons was loaded at the Tianjin port in China in late January and is expected to arrive in February 2024, totalling 300 wagons.

"For Kenya to remain competitive we must continue to improve our transport infrastructure. The Ministry will, therefore, ensure we have the necessary human capital, operational assets and information systems for achieving these goals," stated the CS in part.

Transport CS Kipchumba Murkomen flagging off new wagons for Madaraka Expressway Freight Service. /KIPCHUMBA MURKOMEN

The new wagons, some of which will be used to transport perishable products, are part of Kenya's strategic response to market dynamics, and the need to meet the ever-changing customer demands and gain a competitive edge.

This was the first time new wagons have been added since the launch of SGR in May 2017 by former President Uhuru Kenyatta.

20 of the wagons procured will also have power plugins to enable the movement of refrigerated containers, a hitherto untapped business potential for SGR, a move that is likely to pose competition to private trucking companies. 

"The refrigerated wagons will be a big boost to our horticultural sector. We will be able to respond to the preferences of customers from around the world. To this end, we are at an advanced stage to conclude the cold-chain logistics agreement with our partners," Murkomen added.

In April 2022, Kenya and the Netherlands signed an agreement to facilitate the export of horticulture through SGR.  At the time, it was reported that Kenya Railways would embark on re-modification work to install reefer plug-in points for the containers.

Meanwhile, the CS divulged that Kenya’s rail transport network continues to register significant gains, with the Meter Gauge Railway (MGR)’s cargo volume, for instance, rising by 21 per cent from 787,000 tonnes in 2022 to 1,000,955 in 2023.

At the same time, the volume of SGR cargo increased by seven per cent from 6,090,000 in 2022 to 6,533028 in 2023, while the number of SGR passengers increased by 12 per cent from 2,392,000 in 2022 to 2,727,727 in 2023.

"We need to increase these numbers further through more reforms and investment, such as the new wagons we have procured. We are also expecting 20 more SGR passenger coaches. Of these, six will accommodate people with disabilities. 

"The new coaches will support the increasing demand for SGR passenger services that came about with the addition of a night train service and a stop in Voi," added the CS.

The start of operations at the Naivasha Inland Container Depot and the completion of the second vessel, MV Uhuru II (which has a higher carrying capacity) had also prompted the need for more, high-capacity wagons. 

An SGR locomotive as captured on February 5, 2024. /KIPCHUMBA MURKOMEN