SA firm to invest $80m in Kenya-Uganda rail
The Kenya-Uganda railways are expected to recover market share as a result of an $80m (about sh144.8b) investment during the next five years as Rift Valley Railways Consortium (RVRC) of South Africa manages them, a statement has said.
By Mikaili Sseppuya
The Kenya-Uganda railways are expected to recover market share as a result of an $80m (about sh144.8b) investment during the next five years as Rift Valley Railways Consortium (RVRC) of South Africa manages them, a statement has said.
The statement was issued by the respective governments announcing the winning of the 25-year concession by RVRC after protracted negotiations, which started with seven firms and ended with two consortia.
“RVRC’s winning proposal includes a turnaround and development programme expected to lead to significant growth and increase in freight traffic volume within the first five years,†the statement said recently.
The RVRC consortium will pay $3m (sh5.58b) and $2m (sh3.72b) to Kenya and Uganda respectively upfront. The company is expected to invest $280m (sh520.8b) in rehabilitating existing assets and $42m (sh78.1b) in new rolling stock and operating equipment over the 25 years.
Uganda’s works, transport and communications minister, Eng John Nasasira, said he expected the privatisation of the national railways to lead to greater sustainable investment and contribute to East Africa’s economic development.
RVRC is expected to sign the final agreement with both governments next month and take over management of the railway companies by the end of March next year.
RVRC comprises Sheltam Rail Company (Pty) Limited of South Africa as the lead investor, Comazar (Pty) Limited, Primefuels (Kenya) Limited, Mirambo Holdings Limited and CDIO Institute for Africa Development Trust.
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The Kenya-Uganda railways are expected to recover market share as a result of an $80m (about sh144.8b) investment during the next five years as Rift Valley Railways Consortium (RVRC) of South Africa manages them, a statement has said.
The statement was issued by the respective governments announcing the winning of the 25-year concession by RVRC after protracted negotiations, which started with seven firms and ended with two consortia.
“RVRC’s winning proposal includes a turnaround and development programme expected to lead to significant growth and increase in freight traffic volume within the first five years,†the statement said recently.
The RVRC consortium will pay $3m (sh5.58b) and $2m (sh3.72b) to Kenya and Uganda respectively upfront. The company is expected to invest $280m (sh520.8b) in rehabilitating existing assets and $42m (sh78.1b) in new rolling stock and operating equipment over the 25 years.
Uganda’s works, transport and communications minister, Eng John Nasasira, said he expected the privatisation of the national railways to lead to greater sustainable investment and contribute to East Africa’s economic development.
RVRC is expected to sign the final agreement with both governments next month and take over management of the railway companies by the end of March next year.
RVRC comprises Sheltam Rail Company (Pty) Limited of South Africa as the lead investor, Comazar (Pty) Limited, Primefuels (Kenya) Limited, Mirambo Holdings Limited and CDIO Institute for Africa Development Trust.
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