Direct cost implications of hauling cargo bt the Standard Gauge Railway (SGR) to Inland Container Port (ICD) in Nairobi is higher than earlier estimated, stakehoders in the cargo and logistics business warn
They said the high cost is detrimental to the cost of doing business which ultimately trickles down to the final consumer.
Kenya Groupage Cargo Handling Association (KGCHA) chairman Solomon Muema says currently the cost of moving a one fourty-foot container from Mombasa to Nairobi and back for the empty container by truck averages Ksh.85,000 plus VAT.
On the other hand, transportation of container via SGR to Nairobi is $450 equivalent of Ksh.45,000 but again after clearance at the ICD, there is an additional cost of ast mile charges which on average is $250 to $350.
That alone brings the total charges to Ksh.80,000 yet the consignee has to return the empty container to Mombasa either by trucj with an additional cahrge of Ksh.25,000 to Ksh.30,000 or to take the ICD and use SGR which is an additional Ksh.15,000.
This shows that the cost of using SGR to ferry a container from Mombasa and retun the empty one to Mombasa sums up toan average of Ksh.125,000 which is way more than the fixed cost of Ksh.85,000 levied by trucks.
Besides, in addition to the Ksh.125,000, there is the re-marshalling and storage charges of Ksh.11,000 per twenty-foot containers and Ksh.16,500 per fourty-foot containers which kicks in immediately after the four days free time are over at theICD.
Importers also have to pay demurrage fees for delayed return of transportation containers if SGR fails to hand back the empty containers in time.
Normally, importers are supposed to to remove their goods from the port within four days after shipping . After the four days re over, the shippers are slapped with storage fee and later demurrage fee for delayed return of the empty containers.