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Kampala. Rift Valley Railways wants exporters and importers to switch to transporting cargo through railway because it is cheaper than road.
RVR’s Group chief executive officer Carlos AndrĂ© Aguiar de Andrade, while addressing the one-day workshop in Kampala yesterday, said the tonnage of goods transported via railway in 2013/14 stood at 1.2 million and is expected to rise in 2014/15 to 2.7 million.
Mr Andrade said the firm had invested in more locomotives to facilitate this.
“By the end of May-June, we shall receive 20 new locomotives we bought and in August, more high capacity wagons shall be brought in. We hope more customers will channel their cargo through the railway,” Mr Andrade said.
Competitive pricing
Last year, RVR came under heavy criticism from players in the trade sector over the quality and pricing of the services offered. However, the firm said: “We currently offer the lowest rates. It currently costs about $2,200 [Shs6.5m] to transport a 40ft container which if carried by a truck would cost you about $2,500 [Shs7.5m],” Mr Andrade said.
Speaking at the event, Mr Elly Twineyo-Kamugisha, the head of Uganda Export Promotion Board, asked exporters to switch to railway usage instead of road transport.
“These trucks are usually overloaded and they create potholes along the Mombasa- Kampala route. That coupled with the delays due to human factors – drivers needing to rest from time to time—make railway the better option,” he explained.
Investment in railway
Since January 2012, RVR has invested Shs456b in improving service delivery.
kdidas@ug.nationmedia.com