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Better roads and automation cut East Africa freight costs

Published on October 18, 2017

The cost of transporting a 40 foot (ft) container between Mombasa and Kampala, Kenya’s biggest transit trade market, has gone down 34.2 per cent in the last four years on the back of better roads, reduced police checks and efficiency at weighing points, a new report shows. Road freight costs decreased to Sh230,858 ($2,237) in 2016 from Sh350,880 in 2011.

Automation at weigh stations greatly enhanced efficiencies, shows the 2016 Logistic Performance Survey launched in Nairobi last week by the Shippers Council of Eastern Africa (SCEA).

This comes at a time new rail transport under development in the region is expected to increase competition for road transporters. The standard gauge railway (SGR), which starts its freight services early next year will charge Sh51,650 ($500) to transport a 20ft container between Mombasa and Nairobi and Sh103,300 ($1,000) for a 40ft container. Read more. Source | Business Daily