Cost comparison SGR Kenya vs SGR Tanzania

Cost comparison SGR Kenya vs SGR Tanzania

Nairobi has absolutely nothing to gain from antagonising Uganda


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Kenya Revenue Authority and Ministry of Transport officials witness the offloading of the first cargo load at the Naivasha Inland Container Depot last year. FILE PHOTO | NATION MEDIA GROUP

Summary
  • Kenya is obligated to ensure regulations, formalities, procedures and controls on traffic in transit do not unnecessarily restrict trade.
  • We have conducted fewer tests than both Uganda and Ethiopia.


CHESO

By KENNEDY CHESOLI
More by this Author

The government’s attempt at coercing Uganda into railing its cargo and using the new Naivasha inland container depot (ICD) are misguided. Giving the directive last month, Transport Cabinet Secretary James Macharia cited the need to contain Covid-19 and gave a 10-day ultimatum.

Responding to a letter from Kampala, Head of Public Service James Kinyua reiterated the position and gave no option.

TRANSIT TRAFFIC

This could be in violation of Article 11 of the Trade Facilitation Agreement of the WTO. A signatory, Kenya is obligated to ensure regulations, formalities, procedures and controls on traffic in transit do not unnecessarily restrict trade.

The article also encourages the setting up, where practicable, of separate physical infrastructure like separate berths, lanes and corridors to aid transit traffic.

There are legal and financial ramifications that Kenya may have failed to contextualise. In their protest letter to the Kenya Ports Authority (KPA), Mukwano Industries (U) Ltd pointed out contractual carriage obligations between shippers, consignees and shipping lines.


They wondered how, with Mombasa as their point of discharge and haulage is ascribed on consignees’ risk and account, such a weighty decision could be made without consultation and consent.

The United Nations High Representative for Least Developing Countries, Landlocked Developing Countries and Small Island Developing States has previously acknowledged that transit transportation in East Africa was relatively well regulated and coordinated.

Activities and deliberations of the Mombasa-based Northern Corridor Transit and Transport Coordination Authority have been held up as fine examples for intergovernmental mechanisms in this space.

BREAK EVEN

Surprisingly, the government did not lobby its partners through this or other mechanisms. The SGR and ICD are national projects that would require more cargo to break even but we should discharge their costs without compelling our neighbours to chip in.

With Malaba designated as a One-Stop Border Post (OSBP), it has become a major traffic chokehold with trucks seeking to cross into Uganda stretching some 100 kilometres.

OSBP is aimed at eliminating the daily border crossing hurdles by means of an efficient system that embraces all border procedures — such as Customs, immigration and vehicular clearance. Some will read mischief in the unfolding nightmare. But this could also indicate our continued decline as a regional leader.

Kenya’s response to the Covid-19 pandemic is wanting. We have conducted fewer tests than both Uganda and Ethiopia. For every million people, Djibouti, Rwanda and Uganda have carried out more tests than us. Tanzania and Uganda have even publicly questioned the veracity of our tests and samples.

The increasingly large number of drivers showing up at the border positive prompted Kampala to call for the testing of all truck crews from Kenya.

Forcing truckers to remain on the highway for weeks without the necessary ancillary facilities is bound to spawn new challenges. The Western media is using the crisis to reinforce its narrative that Africa is the epitome of poor governance, incompetence and corruption.

The delays also pose serious financial implications to traders. It compounds the disadvantages landlocked countries face — including delays and high transit and transport costs. It is in Kenya’s interest to speedily resolve this problem as further delays would put the population at higher risk of the coronavirus.

As Kenya continues to cut an image of a pushy, arrogant and incompetent transit partner, Tanzania is positioning itself as a viable alternative.

Already, there are ongoing oil pipeline project to link Dar es Salaam to Uganda and South Sudan. Unless we change course, our neighbours could all opt for Tanzania’s SGR, rendering the Lamu port, SGR and Naivasha ICD white elephant projects.

Mr Chesoli is a New York-based development economist and global policy expert. kenchesoli@ gmail.com @kenchesoli

Nairobi has absolutely nothing to gain from antagonising Uganda
 
Nairobi has absolutely nothing to gain from antagonising Uganda


icd

Kenya Revenue Authority and Ministry of Transport officials witness the offloading of the first cargo load at the Naivasha Inland Container Depot last year. FILE PHOTO | NATION MEDIA GROUP

Summary
  • Kenya is obligated to ensure regulations, formalities, procedures and controls on traffic in transit do not unnecessarily restrict trade.
  • We have conducted fewer tests than both Uganda and Ethiopia.


CHESO

By KENNEDY CHESOLI
More by this Author

The government’s attempt at coercing Uganda into railing its cargo and using the new Naivasha inland container depot (ICD) are misguided. Giving the directive last month, Transport Cabinet Secretary James Macharia cited the need to contain Covid-19 and gave a 10-day ultimatum.

Responding to a letter from Kampala, Head of Public Service James Kinyua reiterated the position and gave no option.

TRANSIT TRAFFIC

This could be in violation of Article 11 of the Trade Facilitation Agreement of the WTO. A signatory, Kenya is obligated to ensure regulations, formalities, procedures and controls on traffic in transit do not unnecessarily restrict trade.

The article also encourages the setting up, where practicable, of separate physical infrastructure like separate berths, lanes and corridors to aid transit traffic.

There are legal and financial ramifications that Kenya may have failed to contextualise. In their protest letter to the Kenya Ports Authority (KPA), Mukwano Industries (U) Ltd pointed out contractual carriage obligations between shippers, consignees and shipping lines.


They wondered how, with Mombasa as their point of discharge and haulage is ascribed on consignees’ risk and account, such a weighty decision could be made without consultation and consent.

The United Nations High Representative for Least Developing Countries, Landlocked Developing Countries and Small Island Developing States has previously acknowledged that transit transportation in East Africa was relatively well regulated and coordinated.

Activities and deliberations of the Mombasa-based Northern Corridor Transit and Transport Coordination Authority have been held up as fine examples for intergovernmental mechanisms in this space.

BREAK EVEN

Surprisingly, the government did not lobby its partners through this or other mechanisms. The SGR and ICD are national projects that would require more cargo to break even but we should discharge their costs without compelling our neighbours to chip in.

With Malaba designated as a One-Stop Border Post (OSBP), it has become a major traffic chokehold with trucks seeking to cross into Uganda stretching some 100 kilometres.

OSBP is aimed at eliminating the daily border crossing hurdles by means of an efficient system that embraces all border procedures — such as Customs, immigration and vehicular clearance. Some will read mischief in the unfolding nightmare. But this could also indicate our continued decline as a regional leader.

Kenya’s response to the Covid-19 pandemic is wanting. We have conducted fewer tests than both Uganda and Ethiopia. For every million people, Djibouti, Rwanda and Uganda have carried out more tests than us. Tanzania and Uganda have even publicly questioned the veracity of our tests and samples.

The increasingly large number of drivers showing up at the border positive prompted Kampala to call for the testing of all truck crews from Kenya.

Forcing truckers to remain on the highway for weeks without the necessary ancillary facilities is bound to spawn new challenges. The Western media is using the crisis to reinforce its narrative that Africa is the epitome of poor governance, incompetence and corruption.

The delays also pose serious financial implications to traders. It compounds the disadvantages landlocked countries face — including delays and high transit and transport costs. It is in Kenya’s interest to speedily resolve this problem as further delays would put the population at higher risk of the coronavirus.

As Kenya continues to cut an image of a pushy, arrogant and incompetent transit partner, Tanzania is positioning itself as a viable alternative.

Already, there are ongoing oil pipeline project to link Dar es Salaam to Uganda and South Sudan. Unless we change course, our neighbours could all opt for Tanzania’s SGR, rendering the Lamu port, SGR and Naivasha ICD white elephant projects.

Mr Chesoli is a New York-based development economist and global policy expert. kenchesoli@ gmail.com @kenchesoli

Nairobi has absolutely nothing to gain from antagonising Uganda
Great piece, ache waendelee na ubabe kwa Uganda, JPM will soon announce tenders for the remaining Mwanza - Makutupora link....
 
SGR TZ
Iko behind sana cost zinapanda.
Main Station ni blunder kujengwa station ya zamani
Itaishia Station na hakuna SGR bandarini another blunder
 
We umeandika nini hasa hueleweki kabisa
Hujaelewa kitu gani?
*Reli hafiki bandarini
*Main station blunder kuijenga katikati ya mji kwenye njia yenye foleni na kutokea ikulu ya Dar
*Mradi umechelewa sana kupita kiasi sababu za fedha hivo cost inapanda sana
*Kuchukua mizigo bandarini sasa inakarabatiwa reli ya Mjerumani ! Gharama nyengine .
Haya mambo hayataki kukurupuka tu
 
Hujaelewa kitu gani?
*Reli hafiki bandarini
*Main station blunder kuijenga katikati ya mji kwenye njia yenye foleni na kutokea ikulu ya Dar
*Mradi umechelewa sana kupita kiasi sababu za fedha hivo cost inapanda sana
*Kuchukua mizigo bandarini sasa inakarabatiwa reli ya Mjerumani ! Gharama nyengine .
Haya mambo hayataki kukurupuka tu
Hehehe
 
Hujaelewa kitu gani?
*Reli hafiki bandarini
*Main station blunder kuijenga katikati ya mji kwenye njia yenye foleni na kutokea ikulu ya Dar
*Mradi umechelewa sana kupita kiasi sababu za fedha hivo cost inapanda sana
*Kuchukua mizigo bandarini sasa inakarabatiwa reli ya Mjerumani ! Gharama nyengine .
Haya mambo hayataki kukurupuka tu
Hata mie sijakuelewa unaongelea SGR ya Kenya ama? 😀 😀 😀
 
Hizi ni visingizio vya wajinga, hata kama Kenya ingekua haijajenga reli, hili swala bado lingekua relevant... Sio wakenya ndo waliamka siku moja na wakaamua reli ya 200km ya Tanzania inafaa kujengwa kwa miaka miwili...... Mwenye aliepewa kandarasi ndo alisema hivyo! Alisema ataijenga reli kwa muda flani na baada ya huo muda reli itakua imekamilika inafanya kazi, muda ulipofika karibu akasongeza miezi, miezi iivyosonga akapeleka completion date mbele zaidi hadi nadhani amepitisha mwaka mzima sasa..... Kisa eti mvua, kwani kwa feasibility study hawakupima mvua ya Tanzania na ku incoporate hio mvua kwa timeline ya ujenzi?
Hata kama SGR ya Tanzania ingkua inajengwa kwa kutumia nuclear power plant, pesa zikishatolewa na kupewa kampuni inayojenga, kama inafaa wamalize baada ya miaka mitatu basi ni iwe hivyo, lakini miaka mitatu ikifika na wawe hawajamaliza wasianze kutoa sababu za kitoto kama eti hoo, mvua ilinyesha, Mwezi wa ramadhan ulionekana, sijui engineer alipatwa na mimba..... hizo ndo zile tunaziita blah blah blah
Povu lote la nn, alafu Dar-Moro co km 200 ni zaidi ya km300
 
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