Travel
Saturday, May 17, 2014
RVR gets deal with Roofings Uganda
KAMPALA, Uganda - Roofings Group, a major regional steel manufacturer have signed up with Rift Valley Railways(RVR).
The deal involves transportation of the company’s imported raw material from Mombasa port to Kampala
Roofings Executive Director Oliver Lalani said the partnership will help the Group increase production capacity which has been affected by delays in delivering imported Hot Rolled Coils from Japan vie Mombasa.
“Diversifying our transport system has great multiplier effect. As Roofings, we shall be in position to import more tonnage from Japan, because now we are sure that the company will not be affected by the challenges associated with road transport. Especially the non-tariff barriers on the roads from Mombasa to Kampala, ” he said
Mark Rumanyika, the General Manager of Rift Valley Railways (Uganda) said “Worldwide steel products are transported on railway transport but in Africa steel coils are still transported on the roads this has caused wear and tear of the roads in most African countries thus pushing up the cost of maintaining roads but if all countries adopt railway system this will reduce both road damages and traffic congestion.”
Lalani said using road transport has been increasing the costs of production.
According to him Roofings has been using about 300 trucks to transport the coils but its tonnage capacity has also been limited by both governments.
Production of steel related products at Roofings Group has doubled following the commissioning of the $100 steel rolling plant on the outskirts of Kampala.
It has a total production capacity of about 120,000 metric tonnes per annum of galvanized sheets and pre- painted galvanized sheets. According to the Uganda National Roads Authority its illegal for any truck to carry load weighing over 20 tonnes on the Uganda roads.
Rumanyika said using the railway would be more efficient for Roofings.
Most of the hot rolled coils weigh above 20 tonnes and this forced Roofings to use more trucks if reasonable production levels aret obe maintained.
By Samuel Nabwiiso, Saturday, May 17th, 2014