Economic Advantages And Economic Benefits Of Railway Development

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The Standard Gauge Railway Project is a landmark project for Kenya and the region. It will have far reaching economic benefits for Kenya and the region as outline below.

1.1 Economic Benefits

The Railway Development will have the following immediate economic benefits:
• Reduce cost of transportation in the country and the region making Kenya attractive to investment;
• Protect the environment through reduced carbon emissions;
• Accelerate industrialization through easier and cheaper transport and the establishment of new industries to service the new railway;
• Additional annual GDP growth of at least 1.5 % during construction and subsequent operation,
• Position Kenya as the transport and logistical hub for the region;
• Reduce congestion …show more content…

• Accidents reduction: The railway will reduce the number of heavy trucks on the road, thereby and so reducing the accident incidences on the road making the roads safer for human …show more content…

Equipment safety protection facilities.
Workplace protection facilities and warning signs.
Building materials (for houses and other facilities) Sand, aggregate, cement, cinder and rebar.
Vehicles for management Pick-ups and 4x4 vehicles.
Tools, small equipment, instruments and spare parts Cut-off, bending, cutting, upsetting, straight thread, mixing and grooving machines, internal and plate vibrators and other related machinery.
Equipment leasing Pavement rollers, excavators, push dozers, ball graders, self-discharging and flat trucks.
Haulage equipment Haulage sub-contractor with high capacity vehicles sufficient number of vehicles and competitive pricing and conditions.
Other subcontractors Stone pitching subcontractors, slope grass planting subcontractors and ditch subcontractors.

6. The land acquisition process

On May 11th 2014, East African leaders and China formally signed agreements for the development of the SGR with China offering a US$1.6 billion commercial loan and US$1.63 billion concessional facility for the Mombasa-Nairobi

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