East Africa - Rift Valley Railways

[John Ashworth]

1. EAST AFRICAN NETWORK IN APPALLING DISREPAIR
Friday, 09 November 2007

The rail network that RVR inherited, managing director Roy Puffet told the press in Kampala recently, was in an appalling "state of disrepair," hampering efforts to significantly boost cargo volumes within the recently completed first year of operation. Much of the “mess” has been rectified however and the alarming rate of rail accidents meaningfully reduced. Revenue has risen substantially, yielding “vast sums to government in fees and taxes”. RVR has developed a new crew roster to coincide with the new train schedule and is undertaking an extensive rehabilitation programme. This includes upgrading of dilapidated sections of mainline track to allow safe operation of trains at an average of 30 km/h, modernisation of the locomotive fleet; wheel and brakereplacement and rehabilitation of rolling stock. In addition, new locomotives and wagons are being purchased.

Of the 44 locomotives that RVR inherited in Uganda, only 25 were operable.

Renovations will extend to buildings, workshops, depots and machinery, and a new Information Technology (IT) system is being put in place. The company is embarking on the second phase of a computerisation project that has seen the integration of an enterprise resource planning (ERP) solution.

"We have undertaken to put in more than four times the required investment outlay as part of our accelerated strategy to put the Kenya-Uganda railway back on top," Puffet said.

According to the concession agreement, RVR is supposed to invest US$5 million in Kenya and US$1 million in Uganda for the first 5 years ending 2011. Currently, the Kenya-Uganda rail system comprises a track length of 2,350km with only 431km in Uganda.

http://railwaysafrica.com/index.php?opt ... &Itemid=35

2. RVR RATES INCREASE
Friday, 09 November 2007

Ugandan importers are far from happy with Rift Valley Railways’ (RVR) recently announced increase of 10% in freight charges. RVR claims that transit time from Mombasa is down from Uganda Railways Corporation’s 3 weeks’ average to about seven days, but Kampala firms maintain the time taken is often longer and is unpredictable. They complain at a lack of consultation.

According to the East African, published in Nairobi, the increase - inclusive of other costs - will cost businesses about $US285.71. A 40-foot container, for instance, will now cost an importer $2,552 to ship from Mombasa to Kampala, up from $2,320 previously, while importers will pay $1,408 for a 20-foot container, up from $1,280.

This is still significantly lower than the average of $3,500 charged for a 20-foot container by the major road transport companies on the same route, the paper points out.

RVR managing director Roy Puffet explains that there have been considerable increases in the railway’s costs, notably in the price of fuel, now that the global rate exceeds $90 per barrel. During midwinter, when there was a fuel crisis in Uganda, RVR did not increase tariffs.

http://railwaysafrica.com/index.php?opt ... &Itemid=35

[Both articles from Railways Africa online]