[ad_1]
The government has announced new rates of cargo transported through the standard gauge railway (SGR), hoping to woo users and step up competition against truckers.
The Kenya Ports Authority (KPA) in a notice announced new promotional tariffs which have been reduced by more than Sh6,500 ($50) for services rendered to containerised cargo destined to the Inland Container Depot Nairobi (ICDN) and Nairobi-based Container Freight Stations (CFS).
The promotional tariff which shall remain valid for a period of six months up to February 15, 2025, also covers shore handling charges and a free storage period for imported containerised cargo transported via the Madaraka Express Freight Service (SGR).
Before the new tariffs, traders were charged about Sh18,900 ($145) for a 20-foot container and about Sh26,000 ($200) for a 40-foot container.
In the new tariff, shore handling rates applicable for imported containerised cargo railed to the ICDN and transferred to Nairobi-based CFSs at Sh13,400 ($103) for 20 feet container, while that of 40 feet container will cost Sh20,405 ($157). Those who ferry goods in bulk will be granted a special rate whereas imported containerised cargo transferred to these CFSs via ICDN will benefit from a discount.
In the rates, traders who use a facility with cargo volumes of between 500-100 twenty feet equivalent units (TEUs), will pay Sh12,738 ($98) for 20 feet container and Sh19,497 ($150) for 40 feet, while those importing between 1001 to 1500 containers per month will pay Sh12,478 ($96) for 20 feet and Sh19,107 ($147) for 40 feet box.
KPA has enticed importers to use facilities in bulk where those transporting more than 1501 TEUs and above every month, will pay Sh12,088 ($93) and Sh18457 ($142) for 20-foot and 40-foot containers respectively.
Shore handling rates are applicable for imported containerised cargo railed to Nairobi-based CFSs without passing through the ICDN (Mombasa port clearance).
The imported containerised cargoes railed to CFSs without passing through the ICDN, will benefit from the volume-based rebates where those importing less than 1000 TUEs but above 500 containers, will be charged Sh12,348 ($95) for 20 feet container and Sh18,197 ($140) for 40 feet box whereas those ferrying between 1000-1500 TEUs every month will be charged Sh11,698 ($90) and Sh17,547 ($135) for 20 and 40 feet containers respectively.
Any trader using SGR to ferry more than 1501 TEUs will be charged Sh10,398 ($80) for 20 feet and Sh15,597 ($120) feet for a 40-foot container.
Those transporting on a small scale will be charged Sh13,648 ($105) for 20 feet and Sh20797 ($160) for 40 feet. KPA has also given an incentive of additional storage-free period to importers who clear container units, depending on the volumes.
The Shippers Council of Eastern Africa (SCEA) has applauded KPA for timely intervention, which will help reverse the 17 percent reduction in volumes handled at the ICDN over the years.
“We are happy with the rate. Shippers using ICDN facilities enjoy improved efficiencies which have seen cargo dwell time averages 3.5 days,” said SCEA chief executive Agayo Ogambi.
Mr Ogambi said the promotional rates must be augmented with enhanced and predictable railage. Any delays shall negate the intended objectives of the promotional rates.
[ad_2]
