The SGR cargo train.[Photo/PSCU]
Traders have urged the Kenya Railaway Corporation to lower the SGR cargo charges.
Express Shipping and Logistics Limited CEO Silvester Kututa has said for the freight trains to attract importers rates must be lowered.
“Importers are enjoying generous discounts from transporters and to lure them and attract high volumes to be designated to the Inland Container Depot (ICD), their rates will need to be irresistible. We are talking of an offer of up to Sh30,000 for the 20 foot container,” he said.
KR started commercial operations of freight trains on the SGR track on January 1.
The state corporation is charging Sh50,000 and Sh70,000 for the 20 and 40 foot container respectively from Mombasa Port to the Nairobi ICD.
But importers have to spend between Sh15,000 and Sh20,000 on the last mile transport to industries within Nairobi depending on the distance from ICD.
“I believe that even with a rate of Sh30,000 the corporation would still make money,” Mr Kututa added.
KR is operating freight trains with 54 double-stack flat wagons, carrying 216 twenty foot containers each with a total load of 4,000 tonnes.