KTDA Partners with Kenya Railways to Transport Tea Using SGR

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KTDA Partners with Kenya Railways to Transport Tea Using SGR


SGR freight train. PHOTO FILE | NMG

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Summary

  • As part of the agreement, tea from the factories managed by KTDA will be transported from tea-producing counties to the Nairobi freight terminal where it will be loaded onto Kenya Railways wagons and then transported to the port of Mombasa.
  • The partnership’s maiden voyage saw KTDA transport 31 containers of packaged tea, representing 800 tonnes via the SGR on Thursday.

Factories run by the Kenya Tea Development Agency (KTDA) will now be able to transport their products via the Standard Gauge Railway (SGR) line from Nairobi to the port of Mombasa for export, the company said.

As part of the deal, tea from the factories managed by KTDA will be transported from tea-producing counties to the Nairobi freight terminal where it will be loaded onto Kenya Railways wagons and then transported to the port of Mombasa.

The partnership’s maiden voyage saw KTDA transport 31 containers of packaged tea, representing 800 tonnes via the SGR on Thursday.

“We are happy to have this partnership with you. I assure you that Kenya Railways is up to the task. We have sufficient capacity to handle all the cargo you can bring us, ”KRC’s chief executive said in a statement on Thursday.

The company partnered with KTDA to transport tea from farmers from Nairobi to Mombasa at a time when it benefited from government orders to transport goods to Nairobi and other areas of the hinterland from the port of Mombasa via SGR.

According to the Kenya National Bureau of Statistics (KNBS) Economic Survey 2021 report, the volume of freight transported via the SGR increased by 4.8%, from 4.2 million tonnes in 2019 to 4.4 million tonnes in 2020.

However, SGR freight revenue fell by 19.6%, from 13,013 million shillings in 2019 to 10,460 million shillings in 2020.

This decrease is mainly explained by discounts and promotional tariffs introduced after the launch of Mombasa-Naivasha SGR freight services.

KRC also suffered a severe blow from Covid-19, where the number of passengers handled through the SGR fell 49.2% to 812,000 in 2020.

This decline was largely attributed to the suspension of SGR passenger rail services from April to May 2020 due to measures instituted by the government to curb the spread of the Covid-19 pandemic.

The reduction in the number of passengers resulted in a sharp drop in turnover.

The investigation also showed that the port of Mombasa suffered little from the effects of Covid-19, where the total throughput of goods at the port fell by 0.9%, from 34.440 million metric tonnes in 2019 to 34.116 million. metric tons in 2020.


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