Electrify SGR, World Bank urges

Green Future

The World Bank has called for the electrification of Kenya’s Standard Gauge Railway (SGR) trains, emphasizing the urgent need to shift from diesel-powered locomotives to electric ones. A report obtained by Nairobi Law from the World Bank titled “Kenya Economic Update, June 2023” highlights the significant environmental and economic benefits of adopting low-carbon logistics in the country’s freight transportation sector.

Kenya has been actively working towards maintaining a low-carbon comparative advantage while enhancing its freight logistics efficiency. The completion of the SGR and the revival of other rail lines have played a crucial role in this endeavor. By transitioning freight transportation to railways, Kenya could save over 20,200 metric tonnes of CO2 emissions for every one million tonnes of freight, substantially reducing the country’s carbon footprint.

Despite the immense potential of rail transport, only a tiny fraction of imports and exports in Kenya are currently transported by rail, indicating a significant scope for intermodal growth. The SGR, connecting the bustling port of Mombasa with inland container depots, has become a vital artery for transporting millions of tonnes of freight. However, the lack of feeder lines to export and industrial zones necessitates using trucks for last-mile delivery. Increasing the share of freight transported via the SGR would have a transformative impact, substantially lowering CO2 emissions compared to road transport.

The World Bank report suggests that electrifying the SGR, instead of relying on diesel trains, could cut emissions in the sub-sector by nearly half. The complete electrification of the SGR holds the potential for annual emissions savings exceeding 53,000 metric tonnes of CO2 equivalents, with most of the savings derived from the freight rail sector. This transition would contribute to a greener environment and align with the further development of Kenya’s railway sector.

While acknowledging that the electrification process requires further study, the report emphasizes the necessity of opening rail infrastructure access, including the SGR and MGR (Meter Gauge Railway), to encourage private sector investment and enhance rail operations’ efficiency. Pricing and access terms must be carefully developed and de-risked to achieve this.

Despite the many advantages of rail transport, the dominance of trucking over rail poses certain challenges. High double-handling costs, unpredictable service levels, and inadequate infrastructure linkages hinder rail freight growth. Consequently, trucking is expected to remain the primary mode of freight transport, particularly for first and last-mile delivery due to limited rail accessibility and maritime frequency. Overcoming these challenges will require complementary measures such as cargo consolidation, equipment sharing, and standardization, digitalization of transport corridors, and seamless intermodal transitions between trucks and rail for containerized freight.

The World Bank report highlights the need to prioritize policies that decarbonize and enhance the efficiency of trucking operations, as alternative technologies like hydrogen for electrifying long-haul heavy-duty trucks are still in the developmental stage. Kenya can pave the way for a sustainable and competitive freight transportation sector by adopting a holistic approach that combines rail electrification with efficient trucking measures.

The World Bank’s latest report underscores the urgent need for Kenya to transition its SGR trains from diesel to electric, heralding a new era of low-carbon logistics. By embracing this transformation, Kenya can significantly reduce its carbon emissions, improve the efficiency of freight transportation, and strengthen its position as a regional leader in sustainable development.