Rift Valley Railways Consortium

The Rift Valley Railways Consortium (RVRC) is a consortium that has been established to manage the parastatal railways of Kenya and Uganda.

The consortium won the bid for private management of the century-old Kenya-Uganda railway in 2005. The railway line, derided as the 'Lunatic Line' by a critical British press during its construction [cite web| url=http://www.lwmcferrin.com/bookings/lunaticexp.htm| title=Aboard the Lunatic Express by Linda Watanabe McFerrin| accessdate=2007-07-16] (and still referred to colloquially as the 'Lunatic Express' even to the current day), runs some 900 kilometres (580 miles) from Kenya's Indian Ocean port of Mombasa, through Nairobi, and up the Rift Valley to Kisumu on the shores of Lake Victoria. [http://business.iafrica.com/african_business/369303.htm "SA Firm gets 'Lunatic Express' railway", accessed 12-18-2006] ]

RVRC is led by Sheltam Rail Corporation of Sheltam Trade Close Corporation (STCC) of South Africa that has experience with management of other African railways. Minor partners of the consortium are Kenya’s Prime Fuels (15%), Mirambo Holdings of Tanzania (10%) and Comazar (10%) and the CDIO Institute for Africa Development Trust (4%), both of South Africa. [ [http://www.engineeringnews.co.za/eng/sector/transport/?show=75985 Background information] ] The consortium plans to invest in the railway system, upgrade it, reduce inefficiencies, utilize a smaller work force, and generate an annual concession fee of 11.1% in each country. In addition it will pay 1 million dollar each year for the passenger service concession in Kenya.

On July 28, 2006 the "East African Standard" reported that the take-over, originally planned for August 1, 2006, was postponed to November 1, 2006. [ [http://allafrica.com/stories/200607280144.html Postponed Take-over, accessed 7-31-2006] ] This operational take-over took place in November and is scheduled to last for 25 years. ]

The 2007–2008 Kenyan crisis included destructive riots that blocked and partly destroyed the rail system between Kenya and Uganda leading to difficulties in supply. Further, destruction and loss of income led to significant financial losses. [ [http://allafrica.com/stories/200802111925.html Albert Ahabwe. Kenya: Railway Transport Also Paralysed. African Business Week (Kampala), 11 February 2008, accessed 2/13/2008] ]

On October 9, 2008, Toll Holdings of Australia announced that it has entered into a contract to manage the Kenya-Uganda railway, replacing the management by Rift Valley Railways Consortium (RVR). The consortium has been criticized for falling freight traffic in the two years since taking control, while RVR alleges the drop is due to the poor condition of the railway infrastructure and the damage done by protesters during the 2007–2008 Kenyan crisis. Officers from Toll subsidiary Patrick Defence Logistics will manage the railway after the transition. [cite news| url=http://www.theaustralian.news.com.au/story/0,25197,24472435-643,00.html| title=Toll to manage Kenya-Uganda railway| work=The Australian| author=Speedy, Blair| date=October 10, 2008| accessmonthday=October 11| accessyear=2008| ]

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