RVR achieves Net Ton per Kilometer (NTK) target

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  • Last of three KPI set by the Governments of Kenya and Uganda is achieved
  • Improved reliability and performance bring renewed confidence in the Kenya – Uganda railway
  • Speed restrictions lifted on most sections result in reduced transit times

RVR the concessionaire for the Kenya Uganda Railway has achieved the 1737 (in Kenya) and 250 (in Uganda) MM. Net Ton per Kilometer NTK targets set by the Governments of Kenya and Uganda under the revised terms agreed upon in the first quarter of 2014 that gave the company 9 months to increase its freight volume numbers.

Attaining the targets means the company has reached the last of three Key Performance Indicators that were set under the amended concession agreement signed by RVR and the two Governments when the new shareholders of RVR came on board in 2011. The other indicators included clearing of outstanding concession fees accumulated by the previous management, making timely payments of the current concession fees and making investments into the railway of at least 40 million dollars in the first five years in infrastructure and rolling stock. (This figure was achieved in the first 9 months under the new shareholders and now stands at over 150 million dollars).

Making the announcement in a press statement today the GCEO of RVR Mr. Carlos Andrade said “achieving this milestone is a very important because it proves the railway is tangibly turning around as a result of investments made by the shareholders. When they took over the railway concession 4 years ago no significant investments had been made in the railway in almost 25 years, since then RVR has replaced over 140 of Km of tracks, acquired 34 locomotives to increase haulage capacity and introduced automated systems that have improved commercial processes. This has resulted in improved reliability and performance which have brought renewed confidence in the Kenya Uganda railway as a viable means of transportation this is the prime reason why our freight figures have increased”.

Roofings , Uganda Baati, Mukwano, Shell (Vivo energy), Mogas and Hass petroleum are just a few of the multinational companies who have signed major deals with RVR and are now moving a significant amount of their heavy freight via rail helping to reduce pressure on East Africa’s already overburdened road infrastructure.

Talking about some of the other achievements registered in addition to the improved freight figures Mr. Andrade noted that that RVR has reduced the areas of railway track under temporary speed restrictions to only 25% of the track in Kenya as of the 31st January 2015 which was below the 26% target set by the regulator meant to be achieved by June 30th 2015. “Our reliability  has gone up and so have our average speeds the transit time between Mombasa and Kampala is now only 4 days which down from 12 four years ago when we took over this is a notable improvement” he added “if bureaucratic processes were reduced we are confident we can bring this down to just two days”.

Commending RVR upon receiving news about the improved NTK figures the acting Managing Director of Uganda Railway Corporation Eng. Charles Kateeba congratulated RVR for reaching the target and wished them the best for the future.