Rift Valley to spend USD 288m
Posted: 14 Mar 2012, 15:44
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.
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.