Friday, July 13, 2012

RVR to repair Nairobi-Mombasa rail



Rift Valley Railways Ltd (RVR), which operates the Kenya-Uganda railways system, has purchased $19 million of track to repair the worn-out sections between Nairobi and Mombasa. A consignment of 6869 metric tons of rail, 10000 railroad ties among other accessories has been shipped in the country to start the repairs.

In August, RVR signed a $164 million loan with 6 development-finance institutions and Equity Bank Ltd to boost its cargo capacity to triple the current 1.7 million metric tons annually and to increase line speed from the present below 30km per hour to 70km per hour.

RVR will also seek to spend $62 million to purchase new wagons and restore old ones so as to benefit from the big regional freight market.

RVR is jointly owned by Egypt’s private-equity company Citadel Capital (51%), Kenya’s Trans-Century Ltd (34%), and Uganda’s Bomi Holdings (15%). 

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