@TheEastAfrican

Let’s not mess up KQ turnaround efforts the way we did Rift Valley Railways - 6 days ago, 11:33

Dennis Kashero

For a transport business, logistics are straight forward: The sole responsibility of an operator is to move goods and passengers from one point to another. However, the operator’s success is determined by efficiency and pricing — factors influenced by the environment.

In 2005, the Kenya Railways Corporation (KRC) and Uganda Railways Corporation (URC) entered into an agreement to concession out the operation of the Kenya-Uganda railway in an effort to turn around the business. A concessionaire was to be granted a 25-year agreement in a deal that would see them profitably operate the railway from which both governments would earn revenues in form of concession fees paid out every quarter.

Due to the capital-intensive nature of the undertaking, the concessionaire approached the opportunity in consortia. The first concessionaire, Sheltam Investment, was awarded the mandate in 2006. It managed the operation for three years until 2009 when the agreement was ...
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