Freight service spurs Kenya's regional goals

The first cargo train running from Nairobi to the Naivasha Inland Container Depot, or ICD, on Tuesday will further reduce logistics costs and greatly boost regional connectivity and integration and economic growth of Kenya's interior.

Uhuru Kenyatta, the president of Kenya, and Wang Yong, the special envoy of President Xi Jinping, commissioned the freight operation of the Chinese-built Nairobi-Naivasha Section, the first phase of the Nairobi-Malaba Standard Gauge Railway, or SGR, and the extension of the Mombasa-Nairobi SGR.

The project, a product of the Belt and Road Initiative, or BRI, is expected to ease cargo transportation from the Port of Mombasa to the newly completed Naivasha ICD, destined for the western region of Kenya and neighboring Uganda, South Sudan, Rwanda and the Democratic Republic of Congo.

Kenyatta said the completion of the depot and commencement of freight services will significantly support and provide anchorage for the development of Naivasha Industrial Park, whose construction is set to begin soon. "We hope other economic and commercial ventures will be established along the line, which together will trigger creation of productive employment, and in the process reduce poverty and inequality across the whole country," he said.

He also said that the 45,000-square-meter Naivasha ICD will not only help relieve pressure on the Port of Mombasa and the Nairobi ICD, but will also take the cargo closer to Uganda and South Sudan by a further 120 kilometers from Nairobi. "This strategic development is a clear demonstration that the SGR is a game-changer in supporting the development of industrial parks, logistics and commercial hubs, and special economic zones, which will attract further foreign investment and enable us to do greater business with neighboring countries," he said.

Kenyatta said the demand for SGR services along Nairobi-Naivasha Railway is a clear demonstration of the need for more efficient transport infrastructure to support investors in Kenya and across the entire East African region.

The launch of the freight services came barely two months after the start of passenger services along the same route.

Kenyatta said the passenger train had already transported more than 10,000 passengers and that demand is significantly outstripping capacity.

He said the operations of the SGR passenger and freight services, locally referred to as Madaraka Express, have been an enabler to each of the pillars of the government's Big Four Agenda－food security, affordable housing, manufacturing, and affordable healthcare for all.

"The significant investments in the SGR project are worthwhile in the short-, medium-and long-term. SGR is a vital component for the realization of the Kenya Vision 2030, the Big Four Agenda and our quest to spread the fruits of our prosperity to every corner of our country," he said.

Since the launch of the Nairobi-Mombasa SGR in June 2017, it has served more than 3.7 million passengers with daily occupancy of 97 percent and handled more than 6.8 million tons of cargo between Mombasa and Nairobi.

Strong support

Kenyatta thanked China for its strong support and assistance to Kenya's economic and social development, and expressed its hope of deepening friendly and mutually beneficial cooperation between the two sides, jointly safeguarding multilateralism, and achieving mutual benefits and win-win results.

He also thanked President Xi for sending a special envoy to the opening ceremony.

Wang, a Chinese state councilor, said that the Nairobi-Naivasha SGR attests to China's growing friendship with Kenya and the wider African continent.

"The completion of the Naivasha ICD and the inauguration of cargo services show the importance attached by the two presidents and their personal commitment. It also demonstrates the principles of the BRI, namely extensive consultation, joint contribution and shared benefits," he said.

Wang said the construction of the railway had created more than 40,000 local jobs and the operation will add 500 more jobs.

"On behalf of President Xi, I extend my sincere gratitude to all the workers, departments and companies from our two countries and people living along the route who have made important contributions to the construction of the railway," Wang said.

Kenya is China's important partner while China is Kenya's important supporter and participant in its national development. "Our cooperation is a pacesetter and a good example of China-Africa cooperation," Wang said.

On Monday, Wang met Kenyatta and pledged China's support to Kenya's infrastructure development goals.

He said China is open to working closely with Kenya to create a link between the joint construction of the BRI and the eight major actions of the Beijing Summit of the Forum on China-Africa Cooperation with Kenya's Big Four Agenda and Vision 2030, to further consolidate political trust while boosting pragmatic cooperation, forging close cultural links and strengthening international collaboration.

Kenyatta thanked China for its strong support for Kenya's development.