In a bid to attract exporters to use the Standard Gauge Railway (SGR), a 50 percent discount has been offered through a 22-billion-shilling ultra-modern container deport.
This move will enable more exporters to use the newly launched SGR in ferrying cargo from Mombasa to Nairobi at a reduced cost.
According to the Transport Ministry, cargo owners currently pay a total of 85,000 shillings to ferry a 20-foot container by road but with SGR, this is expected to come down considerably to Sh50,000 shillings.
The first phase of the SGR, which is from Mombasa to Nairobi has a design capacity to transport 22 million tonnes of cargo, which is equivalent to 80 percent of the total cargo at the port as at 2016.
President Kenyatta, when launching the upgraded depot, directed the Transport and Infrastructure Ministry to ensure that the 22 agencies, which are members of the Mombasa Port Charter, meet their obligations in addressing all the logistical hurdles to satisfy the needs of the private sector.
“To support our exporters, both local and regional, we will offer 50 percent discount for transporting goods from the Nairobi Inland Container Depot and the Port of Mombasa,” said President Kenyatta.
The president disclosed that said the second phase of the Standard Gauge Railway (SGR) will be linked to the depot, connecting Nairobi with the East African region via rail, boosting efforts to improve the movement and management of cargo across the country and into the region.
“The high speed, high capacity, and efficient Standard Gauge Railway network will serve as an important link between the Port of Mombasa and the Inland Container Depot,” added the President.
With the upgraded inland container depot and the SGR, President Kenyatta expressed confidence that there will be a seamless clearance, evacuation, and movement of cargo that will enhance operations of the shippers, freight forwarders and other transport players in the sector.
The Head of State emphasized that all the investment made in transport, in logistics, and in infrastructure is geared towards growing the economy and creating rewarding jobs for Kenyans, saying transport and infrastructure are vital for every item of the big four pillars of his second term agenda.
President Kenyatta assured Kenyans that the cargo moving up and down the line to and from the port for export will present opportunities for employment and wealth creation across the various counties.