Contribution of Cargo Transport Policy on Public Service Delivery: a Case Study of Standard Gauge Railway in Kenya

Abstract

The study investigated the contribution of the Standard Gauge Railway policy on transportation of imported cargo on public service delivery in Kenya. The study had the following specific objectives: investigating the effects of Standard Gauge Railway Cargo Transport Policy on: imported cargo transportation cost in Kenya; time taken to transport cargo to desired destination; safety of cargo being transported; and competition level in imported cargo transport market in Kenya. The research adopted a concurrent mixed research design. Data was collected from seventy-seven freight forwarding companies, ten cargo owners and four key informants. The study found out that: SGR Cargo Transportation Policy contributed adversely to public service delivery in imported cargo transportation industry by increasing imported cargo transportation costs, lengthening the overall time taken in transporting imported cargo and weakening the level of competition in imported cargo transportation market. However, the policy contributed positively to public service delivery by improving cargo safety during transportation. The study concludes that the policy contributed adversely to public service delivery in imported cargo transportation industry in Kenya. The study recommended designing of SGR transport cost model by Kenya Railways Corporation, which is appreciative of last mile transport costs and empty container return costs to Mombasa port. Moreover, the Ministry of Roads and Transport to liberalize imported cargo transportation market and make usage of SGR for cargo transportation discretionary. Lastly, SGR cargo transport policy be amended to ensure it does not create monopoly of SGR to the detriment of competition and service quality.