Kenya is in talks with the United Arab Emirates' national railway operator, Etihad Rail, to take over freight operations on the Standard Gauge Railway (SGR) under a concession arrangement. The plan comes as the government seeks fresh ways to finance the next phase of the railway's expansion from Naivasha to Kisumu and Malaba.
Transport Cabinet Secretary Davis Chirchir said the discussions involve Etihad Rail investing in rolling stock - locomotives and wagons - and running freight services on the line once it is completed.
The government would retain ownership of the railway infrastructure through Kenya Railways Corporation, which would continue to handle engineering and maintenance.
According to Chirchir, Etihad Rail is targeting freight volumes of about 17 million metric tonnes annually to break even or turn a profit.
