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Uganda: Rail Cargo Falls to Eight Percent
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New Vision (Kampala)
17 July 2008
Posted to the web 18 July 2008
Mikaili Sseppuya
Kampala
Since Rift Valley Railways (RVR) took over management of the Kenya-Uganda railways, freight cargo has reduced to 8% from 16%, an official of the Kenya Ports Authority (KPA) has said.
"The committee noted that the rail market share had declined from 16% to 8.7% over the last two years. This has led to a major shift of cargo from the railway to roads, which has increased road accidents, road maintenance and freight costs," Alex Kabuga, the KPA Inland Container Depot manager and chairman of the Seamless Transport Committee, said. The committee met from July 14 to 15 at Crested Towers in Kampala.
It comprises government and private sector stakeholders from Kenya, Uganda and Rwanda, officials from the roads and transport ministries, revenue authorities, clearing and forwarding associations, RVR, Police and truckers' associations.
"The meeting noted challenges facing transportation of cargo by RVR. It was concerned that the concession had not lived up to expectations," Kabuga said.
He said the committee had recommended the two governments address RVR's 'serious shortcomings.'
Kabuga said the railways needed investments in locomotives, rolling stock and infrastructure to improve capacity.
"Railway transport is the desirable option for bulk cargo as one locomotive can carry the equivalent of 50 trucks, with attendant savings in costs, wear and tear on the roads as well as reduced accidents."
He said the committee had called on Kenya, Uganda and Rwanda revenue authorities to implement 24-hour, seven-day customs clearance at their border posts by December 31.
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Kabuga said the committee was working towards implementation of a seamless transportation system where trucks would complete the Mombasa-Kigali route in four days from the current seven to nine day.
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