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Rift Valley Sorted Out?

Posted: 07 Apr 2010, 22:37
by John Ashworth
RIFT VALLEY SORTED OUT

Posted on 06 April 2010 by Railways Africa Editor

According to a statement released by Rift Valley Railways (RVR) on 23 March, shareholder agreement has been reached on the way forward. The Kenya-based TransCentury together with Ambience Ventures, a subsidiary of Cairo-based Citadel Capital, will jointly invest $US250 million to revitalise the Kenya-Uganda metre-gauge rail concession. They are also to “facilitate” the development of a standard gauge line linking Kampala to Mombasa.

The restructuring – to be finalised in April – will see Citadel Capital holding 51% of RVR, Trans-Century with 34% and an Ugandan investor with 15%. Other existing minor players evidently fall out of the picture According to press reports quoting “a recent board paper”, all RVR locomotives are overdue for overhaul. Extensive lengths of the main-line have severe speed limits imposed due to their condition.

South Africa-based Sheltam, the original lead investor and major shareholder in RVR, will disappear from the scene.