by Ronald Njoroge
NAIROBI, June 6 (Xinhua) -- Kenya's Chinese-built Standard Gauge Railways (SGR) is likely to boost the economy, a trade lobby said on Tuesday.
James Mureu, Kenya National Chamber of Commerce and Industry (KNCCI) Acting National Vice Chairman, told Xinhua that the 480-km SGR that runs from Nairobi to the port of Mombasa will ease movement of cargo and people among the two key towns.
"We are expecting the SGR to boost the economy through improved overall efficiency of the country," Mureu said during a media briefing on the upcoming China Expo Week.
Mureu said that railways are cheapest way of moving bulky cargo over long distances.
"So with the operationalization of the SGR, the cost of logistics in the country should come down drastically," he said.
The 3.6-billion-U.S.-dollar SGR was 90 percent financed by China's Exim Bank and started operation on May 31.
According to the KNCCI, the Nairobi-Mombasa transport corridor is the most important transport route in the country.
"It handles the bulk of imports and exports into the country. So by reducing transport cost and travel times, Kenya is likely to increase its competitiveness," he added.
Mureu, who is also the KNCCI Mombasa County Branch Chairman, said the SGR is the biggest manifestation of the Sino-Kenya relations.
"It shows that bilateral relations are based on a win-win foundation for the betterment of the citizens of the two nations," he said.
The trade lobby plans to urge its members to explore more trade opportunities with China. "We should diversify the number of products we export to China," Mureu said.
