Murkomen lifts lid on SGR cargo services contracts given to private firms
Roads and Transport Cabinet Secretary Kipchumba Murkomen yesterday lifted the lid on the contract that Kenya Railways Corporation (KRC) entered with private companies for transportation of cargo through SGR in 2018.
While responding to questions tabled by Gichugu MP Gichimu Githinji, Murkomen (pictured) listed Grain Bulk Handlers Limited and Auto Freight Terminal as the two companies that KRC entered long-term contracts of 30 and 45 years respectively. In a meeting, stakeholders agreed on strategies for promoting SGR freight services and a communiqué signed by the Cabinet Secretary on the same was issued, he said.
One of the strategies, he said, was that Kenya Railways Corporation would identify land for putting up additional facilities outside the Nairobi South SGR Hub for handling of conventional cargo/specialized and bulk cargo such as steel and grain.
It was further agreed that KRC will either develop the facility on its own or lease the land in question to private Sector in order to fast-track the development, he explained.
The meeting chaired by the then Transport, Infrastructure, Housing and Urban Development Cabinet Secretary James Macharia was held on January 4, 2018 and brought together representatives from Shippers’ Council of East Africa and Kenya Ships Agents Association.
It is in line with this directive that Kenya Railways Corporation entered into long freight agreements and granted leases for KRC land at the Nairobi South SGR Hub with companies namely M/S Grain Bulk Handlers Limited and Auto Port Freight Terminal, he said.
Kenya Railways Corporation entered into the Long-Term Freight Agreement with Grain Bulk Handlers Limited on May 5, 2018 for a period of 30 years from the commencement date, he said.
The company was tasked with transportation of cargo including but not limited to grains, coal, clinker fertilizer and petroleum coke on the SGR network in form or vessel including containers.