SGR records stable revenues despite increased freight

Economy

SGR records stable revenues despite increased freight


SGR freight train at Nairobi terminus station in this photo taken April 27, 2019. PHOTO | JEFF ANGOTE | NMG

The standard gauge railway saw a marginal drop in revenue in the first quarter of the year, in a sluggish performance that could delay its break-even point.

The latest data from the Kenya National Bureau of Statistics (KNBS) shows that passenger and freight trains generated 3.65 billion shillings in the first quarter of 2022, compared to 3.66 billion shillings between January and March of the year last, which translates into a drop of 0.32%. .

Freight trains accounted for the largest portion of revenue generated in the first quarter of 2022 at 3.08 billion shillings or 84% of total revenue, while passenger service recorded 569.27 million shillings .

The flat growth comes at a time when the logistics sector is reeling from the shocks of Covid-19, which have affected long-haul transits following the imposed night curfew and restrictions on movement in and out. outside the metropolitan area of ​​Nairobi, Mombasa, Kilifi, Kwale and Mandera.

Freight service remained operational as passenger trains were halted in accordance with government guidelines, to support the flow of goods through the port of Mombasa.

Despite stable revenues, the volume of freight transported via SGR increased by 10%, from 1.39 million tonnes in the first three months of 2021 to 1.53 million tonnes in the first quarter of 2022.

KRC in December 2021 published promotional rates to transport cargo from Mombasa port to Malaba at $860 (Sh101,419) for a 20ft container weighing up to 30 tonnes and $960 (Sh113,212) for a container weighing more than 30 tons.

Charges on a 40ft container weighing up to 30 tons were $1,110 (Sh130,902) while those over 30 tons were levied at $1,260 (Sh148,591).

During the period, passenger revenue also increased by 15% in the first quarter of 2022 to 569.27 million shillings from 494.71 million shillings in the corresponding period.

The number of passengers handled by the SGR during the period under review increased by 70,254 passengers to reach 518,780 in the first three months of 2022.

The Kenya Railways Corporation operates an SGR train from Nairobi to Mombasa and an inter-county service which stops at Athi River, Emali, Kibwezi, Mtito Andei, Voi, Miasenyi and Mariakani stations.

It charges 1,000 shillings on economy class seats and 3,000 shillings on fast class seats between Nairobi and Mombasa – a journey that takes about four and a half hours.

Children under the age of 3 pay no fee to board the train, while those between the ages of 3 and 11 pay half the price that adults pay for economy class and first class tickets.

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Sallie R. Loera