Rift Valley to spend USD 288m

[John Ashworth]

RIFT VALLEY TO SPEND $288M

Railways Africa On March 13, 2012 In Kenya

Over the next five years, Rift Valley Railways (RVR) plans to spend $US 288 million, with shareholders Citadel Capital, Transcentury and Bomi Holdings contributing $82m. According to group CEO Brown Ondego, $39.9 million is to be spent in the next 12 months on infrastructure and rolling stock. New rails are to be laid on a 70 km section of the Nairobi-Mombasa line so that speeds of 70 km/h can be attained, compared to the current 25km/h. Rehabilitating the main Mombasa-Kampala line is to be allocated $23m, with work starting in June 2012. The ultimate aim is to increase market share in freight transport to 20%, by raising tonnage from the 1.7m carried in 2011 to 8m by 2015. It is estimated that the Kenya-Uganda railway utilises only about 20% of its potential capacity.

Meanwhile RVR’s five-year concession to operate passenger services expires in 2012, but freight has still 20 years to run.