The refurbished Nairobi-Nanyuki railway recently resumed operations, targeting annual revenue of KSh 370.4 million annually from commercial activities. The 240-kilometre meter-gauge railway line targets the petroleum sector, looking to mitigate the risks of transporting petroleum products on the road and lower the cost of cargo transport.
Kenya Railways will charge Ksh 82,000 to transport a single 50-tonne fuel tank on the line. The railway operator expects Shell Licensee Vivo Energy to be its primary tenant for the line, as the company plans to boost its fuel supply in Nanyuki.
Vivo Energy was the first company to transport fuel on the refurbished line, shipping six wagons carrying 294,000 litres of fuel. Vivo Energy plans to transport five million litres of fuel a month between its Nairobi depot and Nanyuki, and later triple its capacity to 15 million litres.
Nairobi-Nanyuki Railway to Boost Local Economy
The refurbished Nairobi-Nanyuki railway is also expected to open up the Mount Kenya and the Northern Kenya region, boosting the region’s economic activity. Apart from providing costly movement of fuel, the line will transport farm inputs into the area, and boost capacity to move farm products efficiently.
“This line will not only enable us to import critical products such as fuel and farm inputs, but it will also improve our capacity to export our homegrown agricultural products to intended markets on time and in an efficient way,” Citizen quotes Laikipia Governor Ndiritu Muriithi.
Refurbishment for the railway line cost Ksh 1.8 billion.
READ ALSO: Kenya Railways Slashes SGR Tariffs
