Posta will over the next one month run a pilot project to provide last-mile connections for standard gauge railway (SGR) passengers, the latest bid in the company's efforts to diversify its revenue sources.
Postmaster-general Dan Kagwe says passengers will be charged Sh100 for the journey from Syokimau to the Nairobi city centre as it tests the commercial viability of the venture.
However, Posta will hold back on fully-fledged operations unless the modern train increases the frequency of passenger trains to more than one round trip per day.
"If it makes business sense we will continue doing it. Frankly speaking, if we're doing one train it might not be very viable business," he said.
Posta reported a Sh1.5 billion loss in the financial year ended June, the worst performance in its history.
It had earlier this week launched SGR commemorative stamps that are projected to generate Sh200m in revenue.
Kagwe said Posta will also switch to transporting its parcels and mail via train, cutting on the higher road transport costs. "This means we can do same day mails in Mombasa. We'll get our trucks off the road and if it is possible we will get a postal wagon," he said.
Posta is also planning to open offices at some of the major stations along the SGR route.
More than a century after a colonial railway gave birth to modern Kenya, the country is betting on a new Chinese-built route to cement its position as the gateway to East Africa...
30 May 2017
The passenger service of the Sh327bn Nairobi-Mombasa SGR line was launched officially by President Uhuru Kenyatta on Wednesday.
Although passengers already had the option of switching onto the Rift Valley Railways (RVR) train at Syokimau, there had been concerns that the SGR would be at a competitive disadvantage to buses from Mombasa given that its final stop is approximately 16 kilometres from Nairobi city centre.
Buses, on the other hand, can drop passengers in the heart of the city.
allAfrica AllAfrica is a voice of, by and about Africa - aggregating, producing and distributing 2000 news and information items daily from over 130 African news organisations and our own reporters to an African and global public. We operate from Cape Town, Dakar, Lagos, Monrovia, Nairobi and Washington DC. Go to: http://allafrica.com/
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law.