RVR defies government, refuses to quit railway business

Feb 08, 2018

The government last month threw out RVR and instructed Uganda Railways Corporation (URC) to take over.

In what seems like an act of digging in its heels, Rift Valley Railways (RVR) has refused to relinquish its operations in the country despite its services being terminated by government.

The government last month threw out RVR and instructed Uganda Railways Corporation (URC) to take over.

Among other things, URC started off by running adverts in the major newspapers informing the public of its assumption of duty and also warned the public from dealing with or making payments to RVR on matters pertaining railways business.

However, now RVR has fought back. And in a statement circulated in media, RVR said: "RVR(U) has not repudiated its obligation nor its right under the terms of the Uganda concession agreement."

RVR said government of Uganda has never terminated their services and they remain bona fide operators in the Uganda railway transport business.

RVR went on to claim: "URC does not possess the manpower or requisite rolling stock (mainly for mainland locomotives) to offer any freight railway services, not to mention it has not run a single train since 2006."

Henceforth RVR has asked its debtors not to deal with URC in any way. "…Any payments to URC (whether for cargo  that has already been transported or cargo that is yet to be transported …[will be regarded] as an act of complicity by the paying party to the illegal action taken by URC and [RVR] will accordingly take all necessary legal action against such a party," the statement reads.

Charles Kateeba, the URC boss, was not available for comment.

RVR unending woes

RVR, a Uganda-Kenya railway concessionaire owned by Cairo-based Qalaa Holdings, has had a many problems in the recent past.

Uganda terminated it concession with RVR in October while Kenya ended its dealings with RVR in August last year. This has gravely affected RVR's revenue as it lost 75% of its revenues in Uganda while in Kenya it lost 80% according to reports.

Since losing its foothold in Uganda, RVR dragged government to court and the two parties have been mired in a bitter legal contest.   

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