Kenya’s SGR (Mombasa-Nairobi) VS Ethiopia rail (Addis-Djibouti) - PART II

Ethiopia has recently launched its Chinese built SGR that will link Ethiopia's capital Addis with port at Djibouti.

Inauguration of Ethiopia's SGR - Skyscrapercity

In the previous article we compared Kenya's diesel powered SGR with Ethiopia's electric powered SGR. It has been a general attitude regionally and far beyond that the Kenyan railway cost has been inflated through corruption leading to an escalation of total cost to around USD 3.8B (600km) compared with USD 3.4 B for Ethiopian line.

Many have written either to justify [1] or to disown [2, 3, 4, 5, 6] the enormous cost of Kenya's diesel powered railway infrastructure. Many of those against the exorbitant cost of Kenyan rail are influenced by the fact that the Kenyan rail is diesel powered, shorter, traverses a flatter terain among other reasons. The proponents legitimizing the cost cite the "superior" nature of the Kenya's SGR e.g. for example when it comes to double stacking of cargo, class one trains, provision for electrification in future, higher cargo capacity, longer turning radii, longer elevated length, more "western" looking train stations, more passenger couches...etc.

An elevated section of Kenya's SGR - Skyscrapercity

Economy
Much as been written on the capital cost of the railways but there is scarcity of information regarding the viability study reports for both projects.

The fundamentals point to a cheaper cost for the Ethiopian line in terms of passenger and cargo traffic. Lets have a comparison: Electricity, Labour, Capital cost, O&M

A comparison of fundamentals

Fundamental	KENYAN SGR	ETHIOPIAN RAIL	Comment
Electricity
Labour
Capital cost
Operation & Maintenance
Other

Reference

1. https://www.theguardian.com/world/2016/oct/06/next-stop-the-red-sea-ethiopia-opens-chinese-built-railway-to-djibouti#img-4 2. http://nextgeninfraworld.blogspot.co.ke/2015/01/kenyas-sgr-mombasa-nairobi-vs-ethiopia.html 3. http://nairobiwire.com/2016/10/analysis-ethiopia-unveils-750-kilometre-electric-sgr-but-is-it-better-than-kenyas.html 4. http://www.standardmedia.co.ke/business/article/2000204183/sh16-billion-enough-to-build-new-rail-project-says-leading-uk-magazine 5. http://www.standardmedia.co.ke/business/article/2000101450/why-rail-project-could-be-kenya-s-biggest-scandal-yet 6. http://www.standardmedia.co.ke/article/2000218960/eurobond-sgr-heists-to-finance-2017-election-campaigns-claims-githongo