Posta taps SGR to cut cost of fer­ry­ing parcels

Of­fi­cial says move will re­duce ex­pen­di­ture by half to Sh40,000 per day

Business Daily (Kenya) - - CORPORATE NEWS - Bon­face Otieno bo­tieno@ke.na­tion­media.com

Postal Cor­po­ra­tion of Kenya (PCK) will start trans­port­ing its parcels and mail via the stan­dard gauge rail­way (SGR) next Jan­uary, cut­ting its trans­porta­tion costs by half.

PCK gen­eral man­ager for mail Eliud Lell told the Busi­ness Daily in Nairobi that PCK will spend about Sh40,000 per day to trans­port the parcels and mail. Cur­rently, the ail­ing State cor­po­ra­tion which re­ported a that Posta spends on trans­port­ing parcels and mail each day

Sh1.5 bil­lion loss in the fi­nan­cial year ended June has been spend­ing about Sh80,000 per day to trans­port parcels via road be­tween Nairobi and Mom­basa. “The cost of trans­port­ing parcels via train is likely to re­duce by half,” he said. Mr Lell said dis­cus­sions with the Kenya Rail­ways Cor­po­ra­tion (KRC) on the mode of billing were at an ad­vanced stage.

KRC is set to launch SGR freight train op­er­a­tions in Jan­uary 2017, sup­ple­ment­ing the ex­ist­ing Madaraka ex­press and in­ter-county train ser­vice.

“We are set to start trans­port­ing our parcels and mail via the SGR train in Jan­uary.

‘‘This means that we will get away from the road and ac­quire a postal wagon if all goes well,” said Mr Lell.

Plans by the PCK to switch to trans­port­ing its parcels via rail come barely a few days af­ter KRC re­vealed that ex­porters will en­joy a 50 per cent cut in rail freight cost start­ing Jan­uary.

Un­der the sub­sidised rate, it will cost Sh275 per tonne of agri­cul­tural in­put, Sh330 light bulky goods and Sh660 per tonne of a ve­hi­cle within a dis­tance of 200 kilo­me­tres from Nairobi to Mom­basa, the re­vised rate card shows.

In the op­po­site di­rec­tion (Mom­basa-nairobi), the SGR freight ser­vice will charge Sh550 per tonne of agri­cul­tural in­puts, Sh1,430 per tonne of light cargo and Sh1,320 per tonne of ve­hi­cles.

Cargo trains will charge Sh1,100 per tonne of agri­cul­tural in­puts, Sh2,860 light bulky goods and Sh2,640 per tonne of ve­hi­cles within a dis­tance of be­tween 350 and 400 kilo­me­tres from Mom­basa to Nairobi.

SH80,000

POP­U­LAR A sec­tion of the stan­dard gauge rail­way line. --

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