China Signs Agreement with Africa to Build New Railway
China along with east African leaders have formally signed agreements that is related to the construction of a multi billion dollar railway that runs from the Kenyan port of Mombasa going to Nairobi and to neighboring states.
The agreements were signed in Nairobi during the last stage of the African tour by Chinese Premier Li Keqiang, even when Kenya’s president Uhuru Kenyatta have already signed the deal during his visit to China last year. Both agreed that the costs of moving people and goods across the border will fall sharply. The existing narrow gauge railway in Kenya was created during the 19th century and runs to Uganda. But the new line is faster and is designed to go to Rwanda and south Sudan and is aimed to cut down the hefty costs of trade between the east African nations.
Kenya’s president previously said that the new railway will also cut freight costs down to 8 U.S. cents per ton per kilometer from the previous costs of 20 cents. The length of journey will also be shortened. Work on the 609 kilometer rail from Nairobi to Mombasa will start on October 1 and is set to be finished in March 2018. A subsidiary of China Communications Construction Company called China Road and Bridge Corporation is appointed to lead the construction of the initial Kenyan leg of the rail line.