DRC Presentation.ppt
- 3. Mandate Kenya Railways was born in 1978 under Cap 397. It is mandated to: Provide efficient and effective railway services Provide skills & technology for the railway sector Leverage our assets to grow business Promotion, facilitation and participation in National & Metropolitan railway network development 3
- 4. 4 KR Key Freight Business Units SGR Freight Services / Madaraka Express MGR Freight Services Intermodal Hubs (Malaba Transshipment Hub) Kisumu Port (MV Uhuru Services)
- 5. Traffic Volumes-The Numbers 5 Tonnage per commodity SGR Tonnage per commodity MGR 2017/18 2018/19 2019/20 2020/21 Conventional Cargo 0 54,713 152,327 1,157,373 Containerised Cargo 950,396 3,954,673 3,970,337 3,988,304 0 500 1000 1500 2000 2500 3000 3500 4000 4500 Thousands SGR Freight by commodity type (tonnes) Conventional Cargo Containerised Cargo 2017/18 2018/19 2019/20 2020/21 Conventional Cargo 354,529 329,052 185,297 165,495 Containerised Cargo 141,432 29,403 34,122 78,608 Oils and Liquids 116,678 32,326 21,760 80,903 Steel 76,790 165,890 218,563 309,007 Vegetable Oils 91,571 114,556 77,037 79,923 Others 41,825 40,858 14,576 0 0 50 100 150 200 250 300 350 400 Thousands MGR Freight by commodity type (tonnes) Conventional Cargo Containerised Cargo Oils and Liquids Steel Vegetable Oils Others
- 6. Ease of Doing Business-Diversified Services through Integrated Rail Network Projects and Intermodal Operations 6 Integration of SGR/MGR Operations at NICD- increasing throughput capacity, intermodal operations (current capacity is 216 TEUS Per day (2 SGR Daily trains);6 MGR trains from NICD. Enhanced Service Reliability-On going rehabilitation of the MGR line from NICD to Malaba, refurbishment of Nakuru-Kisumu Line (Alternative Corridor to Transit Markets. Fleet Modernization to Kisumu Port- Rehabilitation of MV Uhuru/Construction of Mv Uhuru II Support Intermodal Operations- Ongoing Development of Transit Go-down at Malaba for Intermodal (Rail to road/road to rail).
- 7. Ease of Doing Business-Enhanced Business Processes 7 Seamless Operations across SGR/MGR at NICD- Enhanced integrated customer planning; Joint operational planning by the three agencies (KPA, KRC & KRA). Information and Coordination- In collaboration with KPA, KRC,KRA,URA developed a process flows for both imports and exports cargo-See process Shipment Track and Trace Capabilities- Integrated information systems (Freight Management System, Translogic system working across KR/URC allows users to have access to real-time information about the status of their shipments. Fast Customer Onboarding- new clients on a prepayment basis are boarded instantly, while haulage contract execution for client requiring credit or ledger account can be facilitated within 5 working days.
- 8. Ease of Doing Business-Other Initiatives 8 • Lowering the cost of doing Business- Review Tariff effective December 2021 that Consolidated SGR/MGR freight Tariff into a single simplified document. • Subsidized export rates - focused strategy to support export competitiveness and enhance cross border trade in the region. • Enhanced Key Account Management capabilities- Business Development Units (BDUs) for superior customer relations and professional support • Enhancing Cross Border operations- Institutional cooperation with URC and TRC to improve the regional freight network performance-Joint operations framework
- 9. Ease of Doing Business-Future Plans 9 • Integrated information systems- the management is implementing Management information system modernization through an ERP (SAP).Complete roll out by Dec,2022. The new system will later be integrated to KPA and KRA SAP systems for seamless operations, Online interface to Freight Customers. • The new system capabilities- generate e-consignment notes, facilitate remote and online working procedures such as wagon booking, enhanced contracts management with customer specific pricing, track and trace cargo enroute. • Export oriented strategy -Exploring feasibility with other stakeholders for round trip charging to support export cargo through empty repositioning of containers to Kampala. • Specialized Reefer Trains- In collaboration with KPA, plans are underway to set up specialized facilities for reefer trains from NICD and ICDE for enhanced transport of perishables by rail to port.
- 10. Ease of Doing Business-Unbundling cost containerized cargo cargo 10 Payable Charge Collecting Agency Rail (Exit Naivasha ICD) SGR/MGR TO MLB ONWARD TO KLA VIA RAIL SGR/MGR TO MLB EXIT Rail (Naivasha ICD) MGR connection- KSM Rail (Exit Naivasha ICD) SGR/MGR TO MLB ONWARD TO KLA VIA RAIL SGR/MGR TO MLB EXIT Rail (Naivasha ICD) MGR connection- KSM Wharfage 70 70 70 70 105 105 105 105 Shore-handling 85 85 85 85 120 120 120 120 Corridor Levy 1.5 1.5 1.5 1.5 3 3 3 3 Rail Transport from MSA Port to Malaba for KRC (MGR Only), Msa Port to Naivasha ICD (SGR only) & Dar Port Mwanza for TRC 650 510 510 510 865 650 650 650 Rail Transport from Naivasha ICD to Kisumu 350 460 Rail Transport from Naivasha ICD to Malaba 350 350 460 460 Malaba Transhipment Cost 25 30 N/A 1,017 1,042 1,017 N/A 1,338 1,368 1,338 Total Freight Cost to Malaba/Kisumu Service 20' CONTAINER Item IMPORTS KPA Charges KRC Rail Charges KPA KRC 40' CONTAINER
- 11. Ease of Doing Business –Export Freight Rates 11 20FT 40FT 20FT 40FT Malaba - Mombasa 450 600 100 150 MGR /SGR Kisumu - Mombasa 450 600 100 150 MGR /SGR Malaba - Mombasa 420 420 100 150 MGR Kisumu - Mombasa 420 420 100 150 MGR Malaba - Naivasha 195 240 50 75 MGR Kisumu - Naivasha 195 240 50 75 MGR Rail Route Rate USD Network Export Container Empty Container
- 12. Ease of Doing Business-Wagon Transit Times 12 Mombasa-Nairobi-Nakuru-Malaba (MGR) route -96 Hours from cargo loading and documentation at the port Mombasa-Naivasha Inland Container Depot (SGR)-24 hours upon Transfer and loading by KPA Naivasha Inland Container Depot-Malaba (MGR)-24 hours upon container documentation and loading by KPA Naivasha Inland Container Depot-Kisumu (MGR)-24 hours upon container documentation and loading by KPA Kisumu-Port Bell/Jinja (MV Uhuru)- 14 hours NOTE The export timeline are similar Timelines are exclusive of duration taken to undertake documentation
- 13. Ease of Doing Business-Contact 13 All enquiries sent to marketing@krc.co.ke Personal Contacts scheruiyot@krc.co.ke Mobile: +254 (0)720 787021
- 14. 14 Thank You