Vivo, Kenya Railways in oil transport deal

Petrol merchandise seller, Vivo Vitality has signed a partnership pact with Kenya Railway that may see it use the Nairobi-Nanyuki railway line to move its merchandise.

The transfer grants the refurbished line an financial lifeline that may profit Central and Northern communities.

The transfer is predicted to cut back congestion and accidents on the Nairobi-Nyeri freeway.

Talking after the 240km test-run from Nairobi to Nanyuki’s Vivo Gas depot, petroleum principal secretary Andrew Kamau stated Vivo Vitality Kenya is the railways’ anchor tenant for gasoline transportation from Nairobi to their Nanyuki hub.

“The Sh1.eight billion used to help rehabilitation of the Nairobi-Nanyuki metre gauge railway was a part of KPC’s remittances to the exchequer in type of particular dividends,” stated the PS.

Transport principal secretary Solomon Kitungu added that farming and pastoralist communities will profit from low cost transport companies thereby enhancing market entry for native produce.

“With this line, I see Nanyuki changing into a pure logistics hub for 10 counties on this area in addition to take pleasure in elevated native tourism,” stated governor Ndiritu Muriithi.

Kenya Railways managing director Philip Mainga stated they anticipate to generate about Sh370.four million income per yr from the revived line with extra contracts set for signing between the company and personal companies for cargo transportation. Vivo Vitality stated it is going to ferry 15 million litres of gasoline month-to-month from Nairobi to their depot price in Nanyuki through the railway line the place a tonne will probably be charged Sh1,640 for a tone or Sh82,000 every 50-tonne of gasoline tank.

“Ferrying gasoline through the railway will bridge the provision hole as solely 5 million litres storage capability was being utilised. Our Nanyuki depot has a 12 million capability,”stated Vivo’s stakeholder and authorities relations supervisor Genesio Mugo.

Mr Mugo stated Vivo plans to maneuver upto 5 million litres of gasoline per thirty days with the numbers anticipated to rise to 15 million litres of gasoline per thirty days as demand grows from the neighboring counties.

About 300 tankers affected by the rail transport service will deal with final mile companies delivering gasoline to petrol stations, authorities installations and nicely as personal entity yards.