By: AGBI

Kenya is reportedly in discussions with the UAE’s Etihad Rail over managing the freight operations on its standard gauge railway, which connects the port of Mombasa to Naivasha via Nairobi.

The $5 billion China-built project was developed to spur growth and facilitate economic integration across Africa.

The government is planning to extend the railway network to South Sudan, Ethiopia and the Democratic Republic of the Congo, building a commercial case for Etihad Rail to invest in freight operations, transport secretary Davis Chirchir told Bloomberg.

The UAE rail operator needs an annual volume of at least 17 million tonnes to secure a return on investment on a concession deal, he said.

The talks include the potential transport of nearly 3 million tonnes of crude oil each year from northern Kenyan oil fields using railway wagons, Chirchir said.

Etihad Rail runs a freight service across a 1,200km network in the UAE. The company is also working with Hafeet Rail to build a rail link between the UAE and Oman.

The company will start its first passenger service next year, connecting 11 cities and regions from Al Sila to Fujairah. The trains will travel at up to 200km per hour and transport up to 400 passengers per train.