THE MIRROR OF MEDIA

SGR posts 33pc rise in Jan-June revenue


Economy

SGR posts 33pc rise in Jan-June income


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SGR passenger prepare on the Miritini Bridge alongside the Mombasa-Nairobi route. FILE PHOTO | NMG

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Abstract

  • It recorded 764,942 passengers within the six months to June, reflecting a 133.8 % soar from 327, 097 passengers in an identical interval final yr.
  • The rise in passenger numbers got here across the Easter holidays, which usually see hundreds of individuals journey to the coastal metropolis of Mombasa, marking a excessive season for the SGR.
  • SGR operates an specific prepare from Nairobi to Mombasa and an intercounty service that stops at Athi River, Emali, Kibwezi, Mtito Andei, Voi, Miasenyi, and Mariakani stations.

Income generated from cargo and passenger providers on the usual gauge railway (SGR) rose by 33 % within the six months to June, lifted by a rebounding financial system, official statistics present.

Knowledge by the Kenya Nationwide Bureau of Statistics (KNBS) reveals that the passenger and cargo trains generated Sh7.936 billion within the interval, up from Sh5.963 billion in an identical interval final yr.

The cargo trains accounted for the most important chunk of the income improve within the interval at Sh1.5 billion whereas the passenger service posted a development of Sh470 million.

SGR greater than doubled its passenger numbers within the interval underneath evaluate and posted a 38.3 % soar within the cargo volumes, driving the income development at a time air and highway transport grappled with low returns because of the Covid-19 containment measures.

It recorded 764,942 passengers within the six months to June, reflecting a 133.8 % soar from 327, 097 passengers in an identical interval final yr.

The rise in passenger numbers got here across the Easter holidays, which usually see hundreds of individuals journey to the coastal metropolis of Mombasa, marking a excessive season for the SGR.

SGR operates an specific prepare from Nairobi to Mombasa and an intercounty service that stops at Athi River, Emali, Kibwezi, Mtito Andei, Voi, Miasenyi, and Mariakani stations.

Kenya Railways additionally decreased freight prices from $600 to $510 for a 20-foot container and from $850 to $725 for a 40-foot sort from Mombasa to Naivasha in February, resulting in a rise in cargo volumes.

Africa Star Railway Operation Firm (Afristar), the corporate that operates the SGR, stated that the variety of containers carried aboard the trains had elevated by almost half within the first month after decreasing the fees.

The agency additionally launched the loading of bulk cargo on particular open-type wagons to draw extra freight.

Within the interval underneath evaluate, SGR cargo trains ferried 2.739 million tonnes, a 38 % rise from 1.98 million tonnes carried in an identical interval on the top of the coronavirus disruptions.

The prepare ferries the cargo from the Port of Mombasa to the Nairobi Container Depot at Embakasi, from the place it’s moved by highway to different components of the nation and the area.

SGR’s elevated revenues got here at a time highway and air transport has seen decreased enterprise as a consequence of a mixture of coronavirus-induced hardships and restrictions.

Revenues for the general public transport sector additionally dipped since final yr when Kenya imposed restrictions to curb the unfold of the virus.

They’ve been carrying lower than half their seating capability consistent with social distancing guidelines however the State allowed them to renew full capability early this month.

Kenya Airways has since final yr grounded a part of its fleet regardless of the resumption of home and worldwide journey, throwing the nationwide service into losses and deepening its reliance on the Treasury for funding.

The rise in SGR’s gross sales within the six months to June comes even because the prepare service revenues proceed to path expenditure, exposing taxpayers to an enormous invoice for sustaining operations along with repaying the mortgage used to assemble the rail and buy the wagons.

Parliament final yr revealed that Kenya had not paid Sh38 billion to Afristar, majority-owned by China Street and Bridge Company.



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