Jerome Mukasa

Two related developments have taken place within the East African Community in a space of two weeks, all related to management of the railway system.

First was the coming on stage of Citadel Capital - the Egyptian equity firm which has bought significant shares into the troubled Rift Valley Railways (RVR), the consortium, which won the concession to run the Kenya-Uganda railways in 2005.

Citadel has since been joined by the Kenyan-based investment company Trans-Century, which has agreed with Citadel to raise US$250m to upgrade the aging Kenya- Uganda Railway.

In Tanzania the government has revoked the concession that was held by Indian company RITES and is looking out for another company to take over its rail network.

In both situations the three governments were disappointed that promises by RVR in 2005 and RITES in 2007 were not honoured.

The companies had promised to refurbish the rail networks and expand it including opening hitherto dormant tracks such as the western and northern lines in Uganda.

The three countries which form the founder members of the East African Community (EAC), continue to rely on expensive road transport making movement of goods and people more expensive, slow and increasing the attendant costs.

Two weeks ago, the East African Community announced a US$20b master plan to upgrade the region's railway system.

It was noted that traffic on the existing network including Kenya and Uganda's Rift Valley Railways, Tanzania Railways and Tanzania-Zambia Railways had the potential to rise to 21 million tonnes by 2030 from 3.7 million tonnes in 2007.

This would enable the region to benefit from the trading bloc and a robust railway would be crucial in merging the EAC with two other blocs of the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA).

Whereas these plans can be implemented, the process of realising them does not seem to be in place.

For example; why are Uganda and Kenya leasing the railway to Citadel Capital and Trans - Century without involving Tanzania so that one manager can operate the entire region's railway system?

One would expect all interested parties to come up with concrete plans which can be merged with the regional governments plans to upgrade, expand and ensure the railway serves the common interest of the people in the region.

By Kenya and Uganda going their way and Tanzania looking out for its own partner, signifies that the East African Community is not ready to work together as a block to achieve a common good.

These governments may need to borrow heavily to raise the much needed $20 billion whereas a number of companies may come in with their money or a good part of the required chunk so that governments or the region as a block can top up thus saving it from huge borrowing which comes with a lot of strings attached.

If there is any service the region can utilise, it is the railway that can bring it together and spur the economies of this poor region to something to be proud of.

It is in this light that the principal players of the EAC (Kenya, Uganda and Tanzania) should carry out a joint concession and have one operator or a group under a single management to run the region's railway.

This time, care should be taken to ensure that the concessionaire they choose has the the money, the expertise and the ability to upgrade, expand and efficiently operate the railway in the region so that this means of transport becomes the most efficient, cheapest and commonest means of movement at least across the region.

This can only be achieved if the region agrees to work together from the start. For now it does not seem that we are heading in the right direction, although it is not too late to rethink our strategy.

When well implemented this can be used as a model to cooperate in other areas like oil drilling and processing, managing elections, exams, disasters and catastrophes and even conflicts, to mention a few areas.

This is the way to go and it can take us to greater heights.