East Africa is in the middle of the most significant rail investment programme in a generation. Kenya's Standard Gauge Railway, running from Mombasa to Naivasha, has improved passenger transit times dramatically but has fallen short of freight projections because the line terminates before the Ugandan border, requiring transshipment. Tanzania's new standard gauge railway completed its Dar es Salaam to Dodoma section in 2023, cutting journey time from 10 hours to under 4 hours and beginning freight operations with capacity of 3 million tonnes annually. Section 2 from Dodoma to Mwanza is under construction, targeting completion in 2026.
The Economics of Rail
Rail transport costs approximately $0.04 per tonne-kilometre compared to $0.12 to $0.18 for road on similar African corridors. For bulk commodities, particularly minerals, fertilisers, and grains, rail economics are compelling once line capacity is established. The challenge is that African rail networks have historically suffered from poor maintenance, equipment shortages, and management inefficiencies that raise effective costs above theoretical rates. Rwanda and Burundi are both potential beneficiaries of Tanzania's central corridor SGR. Logistics operators planning for East Africa rail can access corridor contacts on intra-africa.com.
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