News
Sudanese rail project caught in muddle of Kenyan politics
July 27, 2004 (LiquidAfrica) — The German railway constructor, Thormaehlen Schweisstechnick AG, has launched a major investment drive in East Africa in preparation for the planned construction of the multi-billion shilling railway line linking Kenya to Southern Sudan.
Mr Klaus Thormaehlen, the CEO of the firm, who was on familiarisation tour of the region early this month is set to return in September when he is expected to register a local subsidiary and to open company offices in Nairobi, Kampala and Southern Sudan.
Sources said the German entrepreneur plans to establish a railway sleeper welding company in Mombasa. He is also expected to set up a cement factory in Kapoeta area of Southern Sudan to produce the cement that will be used in constructing the railway line.
During his tour of East Africa, German entrepreneur is said to have held wide lengthy discussions with top Government officials, including Transport minister John Michuki.
The discussion centered on construction of the railway line and overhauling of Kenya’s century-old meter gauge rail network to a modern standard gauge.
Planning and National Development minister Anyang? Nyong?o confirmed that the German and top officials of the Sudan People?s Liberation Movement/Army (SPLM/A), which controls Southern Sudan, were expected back in September to work on an action plan for the proposed railway line.
He said the railway line whose construction is estimated to cost Euros3 billion or Sh294 billion, if successfully implemented, would open the North Western part of Kenya for development.
The ambitious 2,500km project to run parallel to the existing line from Juba through Lockichoggio to Nakuru, is expected to spur economic growth in the semi arid region, which currently depends mainly on road and air transport.
The SPLM/A chairman John Garang has granted exclusive rights to Thormaehlen Schweisstechnik AG to construct the railway system.
Sources within the Government disclosed that a Chinese firm had also expressed interest in not only the planned concessioning of Kenya Airways, but also in extending the existing rail network to Juba, in Southern Sudan.
This has kicked off an intensive deal cutting activities within the government that is said to be taking the shape of the big crack in Narc, the mother party of the ruling government of national unity.
Top SPLMA officials have made it known that Kenya has up to the end of this year to make up its mind on the railway project or lose it to Uganda.
“What Kenyans must know is that though we would very much want to build the line through Kenya, we have other choices. We will definitely not let our development agenda to be held hostage by Kenyan politics,” a source close to the organization said.
SPLM/A?s Commissioner for International Co-operation Dr Costello Garang told The Financial Standard that an agreement on the railway line had been reached between Kenya and Southern Sudan.
He, however, emphasised that the New Sudan could decide to let the railway line run through Gulu in Uganda, onwards to either Mombasa or Dar es Salaam.
The major problems facing Southern Sudan and which its leaders wants to sort out during the six-year transition period include, education, health, infrastructure and agriculture.
Any decision to let the railway line pass through Uganda would be a big blow to Nyong?o who has put in a lot of energy to ensure that Kenya gets a piece of the action.
Last May, Nyong?o led a Kenyan delegation that included the Roads and Public Works minister Raila Odinga on a tour of Germany to see first hand Thormaehlen Schweisstechnik AG?s railway construction work.
Sources said Nyong?o is already spearheading efforts to find a financier for the Kenyan section of the project.
He is said to be particularly eyeing the Arab Development Bank, which offers interest free loans, the African Development Bank (ADB), European Investment Bank (EIB) and Kfw of Germany.
Thormaehlen Schweisstechnik AG has made remarkable strides in the construction industry over the 15 years of its existence.
The German entrepreneur has re-invented the art of welding railway tracks, through the flash butt welding technology that enables the production of a jointless rail.
This technology entails heating and pulling of rail tracks to establish the middle temperature and thereafter the rail is welded into one seamless track.
His most ambitious project to date is the 350km per hour high-speed railway line running through Germany?s Cologne-Rhein-Maine that was built in 2002.
The firm is currently constructing another of Germany?s outstanding railway lines and the 300km per hour high-speed Nuremberg-Ingoldstadt line.
The company, which is also active on the international front, built the 60km per hour high-speed rail track linking the Malaysian capital of Kuala Lumpur and its international airport, and is currently undertaking construction of the 100km per hour high-speed Kyoto-Atlanta railway line for the Greece Olympics.
One of its subsidiaries, the Ingeno Group is also active in Poland.
Mr Klaus Thormaehlen, the CEO of the firm, who was on familiarisation tour of the region early this month is set to return in September when he is expected to register a local subsidiary and to open company offices in Nairobi, Kampala and Southern Sudan.
Sources said the German entrepreneur plans to establish a railway sleeper welding company in Mombasa. He is also expected to set up a cement factory in Kapoeta area of Southern Sudan to produce the cement that will be used in constructing the railway line.
During his tour of East Africa, German entrepreneur is said to have held wide lengthy discussions with top Government officials, including Transport minister John Michuki.
The discussion centered on construction of the railway line and overhauling of Kenya’s century-old meter gauge rail network to a modern standard gauge.
Planning and National Development minister Anyang? Nyong?o confirmed that the German and top officials of the Sudan People?s Liberation Movement/Army (SPLM/A), which controls Southern Sudan, were expected back in September to work on an action plan for the proposed railway line.
He said the railway line whose construction is estimated to cost Euros3 billion or Sh294 billion, if successfully implemented, would open the North Western part of Kenya for development.
The ambitious 2,500km project to run parallel to the existing line from Juba through Lockichoggio to Nakuru, is expected to spur economic growth in the semi arid region, which currently depends mainly on road and air transport.
The SPLM/A chairman John Garang has granted exclusive rights to Thormaehlen Schweisstechnik AG to construct the railway system.
Sources within the Government disclosed that a Chinese firm had also expressed interest in not only the planned concessioning of Kenya Airways, but also in extending the existing rail network to Juba, in Southern Sudan.
This has kicked off an intensive deal cutting activities within the government that is said to be taking the shape of the big crack in Narc, the mother party of the ruling government of national unity.
Top SPLMA officials have made it known that Kenya has up to the end of this year to make up its mind on the railway project or lose it to Uganda.
“What Kenyans must know is that though we would very much want to build the line through Kenya, we have other choices. We will definitely not let our development agenda to be held hostage by Kenyan politics,” a source close to the organization said.
SPLM/A?s Commissioner for International Co-operation Dr Costello Garang told The Financial Standard that an agreement on the railway line had been reached between Kenya and Southern Sudan.
He, however, emphasised that the New Sudan could decide to let the railway line run through Gulu in Uganda, onwards to either Mombasa or Dar es Salaam.
The major problems facing Southern Sudan and which its leaders wants to sort out during the six-year transition period include, education, health, infrastructure and agriculture.
Any decision to let the railway line pass through Uganda would be a big blow to Nyong?o who has put in a lot of energy to ensure that Kenya gets a piece of the action.
Last May, Nyong?o led a Kenyan delegation that included the Roads and Public Works minister Raila Odinga on a tour of Germany to see first hand Thormaehlen Schweisstechnik AG?s railway construction work.
Sources said Nyong?o is already spearheading efforts to find a financier for the Kenyan section of the project.
He is said to be particularly eyeing the Arab Development Bank, which offers interest free loans, the African Development Bank (ADB), European Investment Bank (EIB) and Kfw of Germany.
Thormaehlen Schweisstechnik AG has made remarkable strides in the construction industry over the 15 years of its existence.
The German entrepreneur has re-invented the art of welding railway tracks, through the flash butt welding technology that enables the production of a jointless rail.
This technology entails heating and pulling of rail tracks to establish the middle temperature and thereafter the rail is welded into one seamless track.
His most ambitious project to date is the 350km per hour high-speed railway line running through Germany?s Cologne-Rhein-Maine that was built in 2002.
The firm is currently constructing another of Germany?s outstanding railway lines and the 300km per hour high-speed Nuremberg-Ingoldstadt line.
The company, which is also active on the international front, built the 60km per hour high-speed rail track linking the Malaysian capital of Kuala Lumpur and its international airport, and is currently undertaking construction of the 100km per hour high-speed Kyoto-Atlanta railway line for the Greece Olympics.
One of its subsidiaries, the Ingeno Group is also active in Poland.