Caption: The SGR freight train. Photo courtesy of theeastafrican.com
The new directive by Kenya Ports Authority to ‘force’ all un-nominated cargo to be ferried by Standard Gauge Railway freight trains from Mombasa to Nairobi is not good.
If the directive is fully implemented by KPA, it will monopolize the SGR freight trains which is not good for business.
It will not only create unfair business environment for the key players along the Northern corridor but will also lead to massive loss of jobs.
According to a report published on the Standard on February 7, KPA managing director Catherine Wairi said they came up with the decision to ensure that SGR succeeds in terms of economies of scale and reduction of transport costs.
This reason is null and void and should not be used to create unfair business environment.
Even if the costs will be cheaper, businessmen who transport cargo from Mombasa to Nairobi should be allowed to choose methods they deem fit for them. They should not be forced to use the freight train.
Imagine the National Transport and Safety Authority forcing passengers traveling from Mombasa to Nairobi to abandon buses and use the SGR train just because it would be cheaper for them and take less time or to ensure that the SGR train succeeds in terms of economies of scale.
This argument does not hold water.
If the economic importance of SGR investment in terms of returns on investment does not seem to materialize, then those who implement the program should device other means of making it give returns but not to force clients to use it.
Using or not using the train, passenger or freight should be at the sole discretion of the client.
We all know that knowing one’s HIV status is important in the fight against the spread of HIV/AIDS but it will be foolhardy for the Ministry of Health and relevant stakeholders to force people to take the test.
Just like taking the test is voluntary, using the train should also be on a voluntary basis.
If you open a shop and you do not get enough clients, do you force them to come and buy from your shop?
No, you change your method of doing business or even change the type of business if need be.
The article estimates that 12,000 people employed in the sector will lose their jobs, is this why Kenyans spent their hard earned cash to construct the SGR?
Food for thought.
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