Kenya’s $3.8 Billion Chinese-Built Railway Shows Why Belt and Road Is Being Reworked

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The Wall Street Journal

The Wall Street Journal

Күн бұрын

The Chinese-built Standard Gauge Railway connecting Nairobi and Mombasa was supposed to provide an economic boost to Kenya. Instead, it’s become a case study in some of the problems China’s Belt and Road Initiative can create.
So is Xi Jinping’s ambitious global infrastructure expansion over, or is the BRI program only just getting started?
0:00 Kenya’s SGR was supposed to grow the country’s economy
00:38 China’s $3.6 billion loan, and a closed bidding process
02:24 Why Kenya’s SGR has struggled to pay for itself
04:36 So what does the future hold for China’s BRI and its transportation projects?
To learn more about how Chinese officials are overhauling the Belt and Road Initiative to make it more economically sustainable, watch Shelby's full video here: • How China Plans to Sal...
I'm George Downs, a WSJ video journalist fascinated by how technology is changing how we get from A to B. If you're interested in the future of mobility or how modern transportation can impact our lives- from EVs to eVTOLs, and beyond - then don't forget to subscribe.
#China #BRI #SGR

Пікірлер: 4 300
@GeorgeDownsWSJ
@GeorgeDownsWSJ Жыл бұрын
Do you think China will continue to develop transportation infrastructure around the globe?
@VedantinKK
@VedantinKK Жыл бұрын
Oh yeah, definitely. Until the US, EU, Japan, Australia, and other European democracies steps in to help countries in need of infrastructure - China will continue to occupy the vacuum.
@FundiWaStima
@FundiWaStima Жыл бұрын
The award of the contract was corrupt. The team of experts that did the feasibility studies were overruled by politicians. The project was known not to be feasible from the onset. The price was also inflated. Moreover, the technical team was blindsided by the award of the project to the chinese. The feasible option had been to refurbish the existing railway, at a fraction of the cost.
@devendrajat143
@devendrajat143 Жыл бұрын
Yes
@sbkarajan
@sbkarajan Жыл бұрын
China building roads, rails, ports, and power plants are far better than the US transporting drugs and arms, laundering dirty money in the same developing countries, and also stealing their oil. In addition, weren't the US accusing China of having some ulterior motive for doing all these good things that the US has never done? Like expansion of Chinese military base? Now that turns out to be a lie, and then what, Chinese project did not make any economic sense? You mainstream media should be ashamed of yourselves, nothing but lies and lies and more lies.
@dywang32
@dywang32 Жыл бұрын
Why don't you ask Kenyans whether they rather have a railway or no railway?
@JaimeWarlock
@JaimeWarlock Жыл бұрын
I am an American living in Kenya. Benefits of the SGR go way beyond moving materials back and forth from Mombasa and Nairobi. A lot of people are using it now to commute between Nairobi and Mombasa since it is significantly faster than matatus. Once extended to Kisumu, it will open up potential for mining and farming in the interior hinterlands. Right now, huge amount of food comes from Tanzania mainly due to better infrastructure connecting it. Fish farming in Lake Victoria could become a thing with the right infrastructure to quickly transport from Kisumu to Mombasa and allowing to sell on the global market. The SGR may not appear profitable from a direct revenue point of view, but it is accelerating all aspects of the economy. This will increase national tax income. It is not just about cargo fees.
@johnsoncao3114
@johnsoncao3114 Жыл бұрын
Exactly.1. Basic infrastructure may not payback by ticket selling as it's pricing has to be beneficial to more coverage of ppl; 2. Brings more management skills and educational insights to ppl who have chance to use advanced tech.
@ksandhoff1
@ksandhoff1 Жыл бұрын
yeah tell that to the Chinese banks !
@ericmosioma6319
@ericmosioma6319 Жыл бұрын
Your english betrays you as 'Kenyan' English not 'American living in Kenya' english, you imposter
@thaivang
@thaivang Жыл бұрын
Lol...
@Littlelamb2023
@Littlelamb2023 Жыл бұрын
I’ll check back in ten years to see if ya right 🤔
@diyside
@diyside Жыл бұрын
I used to spend at least 8hrs on the bus at night going to Mombasa and it was always risky traveling on a two way highway full of trucks. Last year when my family and I visited home we used the SGR. Only $40 for first class, very good customer service with a lot of comfort and the travel time is half of what you would spend in the bus. Hopefully the project expands to other parts of the country. It has made life much easier.
@VarunRamamurthy_DrDude
@VarunRamamurthy_DrDude Жыл бұрын
It has made life easier but your country will soon fall because of this
@TheJohn222222
@TheJohn222222 Жыл бұрын
the important question is cost of project . similar projects in india are completed under 2 billion usd . chinese companies obviously made huge profits .
@stopiwantoff7965
@stopiwantoff7965 Жыл бұрын
Kenya has put their foot in Chinese bucket.🤔
@diyside
@diyside Жыл бұрын
@@TheJohn222222 I think over time the project will pray for itself. But was the cost inflated? Most likely yes. The deal was very shady I'm sure someone pocketed money out of it
@diyside
@diyside Жыл бұрын
@@stopiwantoff7965 yes and not only Kenya but very many African countries.
@kateciku1229
@kateciku1229 Жыл бұрын
You can say whatever you want but the SGR is the best thing that ever happened to us Kenyan commuters
@fiachramaccana280
@fiachramaccana280 Ай бұрын
Hahahaha as long as you dont have to pay for it
@rap3208
@rap3208 Ай бұрын
@@fiachramaccana280 There is no free lunch.
@niks7783
@niks7783 Ай бұрын
Lol.. Kenya really benefited from this Chinese loan. Now they have a regular seat at the IMF table and their public is partying on the streets. All thanks to China
@kmrao06
@kmrao06 Ай бұрын
@kateciku: So who , do you think, is paying the cost of construction !
@bigbigdog
@bigbigdog Ай бұрын
@@fiachramaccana280 you can say the same about everything though
@williamleonard2242
@williamleonard2242 Жыл бұрын
The creation of this property eventually allowed for exchange.
@ebonicalbert5711
@ebonicalbert5711 Жыл бұрын
Welcome to the U.S. where our motto is; "come back when you are a little more richer."
@thomasnorris7285
@thomasnorris7285 Жыл бұрын
This is the most intelligent word's I've heard.
@thomasnorris7285
@thomasnorris7285 Жыл бұрын
Most times it amazes me greatly the way I move from an average lifestyle to earning over 63k per month, utter shock is the word. have understood a lot in the past few years to doubt that opportunities abound in the financial markets, The only thing is to know where to focus.
@ebonicalbert5711
@ebonicalbert5711 Жыл бұрын
@@thomasnorris7285 Wow buddy, that's more than a mouthful of profits you're making. How do you achieve this feat consistently? You must be a genius in trading.
@thomasnorris7285
@thomasnorris7285 Жыл бұрын
@@ebonicalbert5711 Anyways not actually, what I know about trading almost borders on zilch lol. I make huge profits on my investment since I started trading with Mrs Debbie Ramirez, her trading strategies are top notch coupled with the little commission she charges on her trade.
@KelvinKim-desu
@KelvinKim-desu Жыл бұрын
Building large infrastructure is always a big risk for any Nation. However, building no infrastructure is a big failure. We shot our shot and we are growing with it here in Kenya.
@elimlinrr6898
@elimlinrr6898 Жыл бұрын
It will improve Kenya's export sector. I just bought some Kenyan avocados from a supermarket here in Malaysia. Much cheaper than those imported from Australia.
@drdewott9154
@drdewott9154 9 ай бұрын
Yeah. Another big problem could be killing off a big project prematurely. The SGR phase 1 is just phase 1 after all, its a shell of what its likely to be if more phases are greenlit and opened, or the whole system as planned. Phase 1 largely just connects 2 locations, but with extensions new possible trips for cargo and passengers can become viable, helping grow the economic development in many parts of the country, which in turn improves the SGR's business case. It's like induced demand.
@KelvinKim-desu
@KelvinKim-desu 9 ай бұрын
@@drdewott9154 thankfully it seems like the current government is still committed to finishing the project. This is one of those projects whose true benefits will be realized when it is complete. That link across Kenya's major cities as well as import and export portals is critical. Once the link is complete this will be a breakthrough for the entire region. I'm also happy to see that Tanzania has made a lot of progress on their side. When the two tracks are linked we will have a circuit that will feed generations of east Africans for centuries. Despite the short term challenges, we need to think of our future and that of our descendants.
@hk254lyt8
@hk254lyt8 2 ай бұрын
@@elimlinrr6898how do our kenyan avocados taste?😂
@abdulshameer9868
@abdulshameer9868 Ай бұрын
Yeah, overbuilding infrastructure as in this case is a temporary problem, especially for a fast growing place like Africa.
@cynfulification
@cynfulification Жыл бұрын
As a Kenyan,the SGR has really helped saved time and money while traveling to Mombasa. Buses were always unsafe especially when they broke down. The problem with the railway project is that there is alot of corruption. Our Government want to have a big slice of the cake that is causing issues with the Chinese. I don't blame the Chinese....our government is just too greedy.
@musqul8566
@musqul8566 Жыл бұрын
Hi China bot.
@theTHwa3tes11
@theTHwa3tes11 Жыл бұрын
@@musqul8566 That ain't a bot.
@prasenjittripura4691
@prasenjittripura4691 Жыл бұрын
china rs2 ywan social credited
@TheHol8
@TheHol8 Жыл бұрын
Yeah, it may be true, but I personally feel the return of investment is bleak. Kenya will have to pay for that just like China owns Sri Lanka and Pakistan ports, be careful. Its high time the African countries should stand on their own feet and let go of the tribalistic mentality.
@wh2960
@wh2960 Жыл бұрын
@@musqul8566 jump on a highway yankee
@MichelePonte
@MichelePonte Жыл бұрын
Railways around the globe are meant to carry people and economy, therefore even if not profitable they still generate profit for the country.
@richdobbs6595
@richdobbs6595 Ай бұрын
I suspect that this is being financed essentially off the back of factory workers in China. If you look around the world, there are a huge number of railroad lines that have been abandoned rather than carrying people and cargo. America has one of the finest freight railway systems in the world, but driving around here in Colorado, it is easier to find abandoned track than the lines that are still operational. It used to make sense to run track to modest sized factories but no more. That has been replaced by containers traveling from China.
@niks7783
@niks7783 Ай бұрын
Lol.. Kenya really benefited from this Chinese loan. Now they have a regular seat at the IMF table and their public is partying on the streets. All thanks to China
@stickynorth
@stickynorth 27 күн бұрын
@@richdobbs6595 Colorado is not Kenya... Apples and Oranges..
@richdobbs6595
@richdobbs6595 26 күн бұрын
@@stickynorth Railways are railways. Many formerly profitable lines are abandoned. This idea that railways are necessarily beneficial eventually seems to be questionable, given how many don't even get maintained. This idea that they are "beneficial" for social reasons is the same used to justify building sports arenas that get abandoned when the next project comes along.
@ryanw531
@ryanw531 Жыл бұрын
In my country railways had always been operating at lose but are maintained by the government as part of public service due to the indirect economic value it provides as infrastructure.
@skp8748
@skp8748 Жыл бұрын
Exactly I can't believe what this is about... Every single govt infrastructure project is built on loans our taxes are just collateral for govt to get the loans... How much does HS2 cost? In what world can they ever be repaid by train fares. That wasn't paid for using cash UK took out loans to pay for it. When Italy gets billion from the ECB to build a trainline... No one is imagining train fares will pay for it but that the economic growth resulting from linking cities or shortening travel time alongside the improvement in quality of life for citizens over the lifespan of the train is worth it. Who on earth expects a train line to make $200m in a year. As for Kenya not being able to service annual repayments 😂 China is an export nation all you need to do is offer them greater access to market which offsets the repayment. Will your trade deficit increase with China yes but I can't name a single country on earth that has a positive trade balance with China..
@cleanwillie1307
@cleanwillie1307 Ай бұрын
If they operate at a loss then they don't actually provide economic value. They are a government subsidy.
@TheLukasDirector
@TheLukasDirector Ай бұрын
​@@cleanwillie1307 Exactly. If the value they provide is so great, then people would be willing to pay higher fees (for both cargo and passengers).
@ryanw531
@ryanw531 Ай бұрын
@@cleanwillie1307 Indirect economic value, the train itself may not generate enough revenue to make bank but it allows other sectors in the economy to bloom. You can't export and import efficiently without a rail system, but with one the increased trade volume will generate more taxes, workers getting to their work places results in income and spending, tourism, logistics, and even the military all rely on transportation. Most transportation losses are being subsidized by governments around the world due to how much benefits they can bring.
@beyondEV
@beyondEV Ай бұрын
​@@cleanwillie1307 So since Road don't pay for themselves, they don't provide economic value? Good luck running a place without roads.
@pkeiru
@pkeiru Жыл бұрын
To be fair the SGR has positively impacted the movement of passengers along the entire corridor from Msa to Nairobi and vice versa. It is a great alternative to the road.
@AMGW11
@AMGW11 Жыл бұрын
I don't use road anymore to travel to the Coast, there are just way too many stupid people behind the wheels of road vehicles. I can't gamble my life on long distance road travel, especially in our part of the world. Carnages every single day costing lots of human lives.
@pietrojenkins6901
@pietrojenkins6901 Жыл бұрын
@@AMGW11 passenger traffic never makes money for railways anywhere in the world.Freight of cargo is the real $$$ maker.
@pkeiru
@pkeiru Жыл бұрын
@@pietrojenkins6901 and maybe with more time to grow industries locally it will be put to work ferrying exports to MSA as it does imports into the hinter land. But to travel on Kenyan roads is to understand the cost on lives that has been brought about the lack of law enforcement on these roads.
@francescoaiazzone
@francescoaiazzone Жыл бұрын
@@pietrojenkins6901 high speed trains in Europe make money. Commuter services don't, but that's by design. Still, freight transport must be moved back to the rails.
@_aponak4716
@_aponak4716 Жыл бұрын
WSJ journalism Job are report or spread fake new..
@joputhiyaparambil07
@joputhiyaparambil07 Жыл бұрын
I'm an Indian who enjoys little failure in China, so don't cancel me by claiming I'm a Chinese bot. I have a few points to say. 1. It's a fairly new railway line, don't expect a new railway line to utilise 100% from day one. It'll take years to build infrastructure and logistics networks around the new railway lines. Only after that, its full potential will be achieved. 2. As your video mentioned there is a possible future expansion of this line. Railway line extension will exponentially increase the potential. 3. Since the rail can transfer goods faster and more efficiently compared to the roads, there will be indirect money savings. That also helps Kenya's economy and its people. What I am trying to say is, you western media are too eager to see China's failure and too early to declare it. As an American, you might have issues understanding how beneficial is a railway. But as an Indian, that's one of the few things we understand as a country. Do some more research before your next video.
@HTV-2_Hypersonic_Glide_Vehicle
@HTV-2_Hypersonic_Glide_Vehicle Жыл бұрын
You shouldn't be too worried about random people calling you a Chinese butter, a bot of any sort if you're just an honest human. A bunch of dumbasses behind a screen are something you shouldn't be afraid of when they think that you're just a bot.
@adrianooliveira9144
@adrianooliveira9144 Жыл бұрын
Excellent man! Those people from the "first world" think they are the only one who deserve a comfortable and modern transportation. Besides the fact they are scared to death about Chinese power
@jyc313
@jyc313 Жыл бұрын
It’s less about the efficacy of the railroad. Sure, it could be effective and very popular eventually.. only time will tell. But 5 years later, it’s operating at an enormous loss - they’re starting off negative even if over the course of the railroad’s useful lifetime they can make that back. But this is more about the financial position Kenya is faced with and the advantages China has by lending. China like other nations doesn’t do anything if it doesn’t give them a particular advantage
@-whatever-
@-whatever- Жыл бұрын
Nah, Mallu commies with sympathies for the CCP can't play the 'I'm Indian card'
@joputhiyaparambil07
@joputhiyaparambil07 Жыл бұрын
@@-whatever- Try something smart next time. 🤦🏽‍♂️
@charlesscott4722
@charlesscott4722 Жыл бұрын
Ths project was finished in 2017. So, when you say it hasn't paid for its self, was it supposed to recover the entire $3.8 bil cost in just 4-5 years of operation??
@jaymchelsea2839
@jaymchelsea2839 5 ай бұрын
I am Kenyan and we love the SGR. It is now making money and phase three to Uganda is now starting. The project has greatly changed the country, for example, promoted other sectors like tourism.
@TheTororist
@TheTororist Жыл бұрын
my god, western media are still on this railway BS. us Kenyans love the railway, it has made life so much easier and cheaper. nobody expected the railway to be profitable at once, or even ever. theres other economic value it has unlocked
@heartbeat8960
@heartbeat8960 Жыл бұрын
You are right , The economic momentum that a railway can drive far exceeds the railway itself .
@Plaufin
@Plaufin Жыл бұрын
I think they are mot assesing how useful it is, they are just saying its not profitable and how does the country face that debt+losses
@BoatLoadsofDope
@BoatLoadsofDope Жыл бұрын
America was build on rails. It seems like they have forgotten that.
@trolllovindaddy
@trolllovindaddy Жыл бұрын
Funny this is exactly what ari Lanka said as well 🤔
@sangteazadeng2064
@sangteazadeng2064 Жыл бұрын
@@trolllovindaddy really? Sri Lanka debt to china is around 10% of total debt Sri Lanka. 80/90% of their debt comes from western company and IMF and you guys still have audacity to blame china
@sreenathsurendran853
@sreenathsurendran853 Жыл бұрын
Building transportation is the first step of development.
@robertgittings8662
@robertgittings8662 Жыл бұрын
My only question is why are the white guys so "keenly" interested 🤭 after looting the continents for centuries sold its people, I think they are definitely "genuinely concerned" out African people right?
@somethingelse9535
@somethingelse9535 Жыл бұрын
No it isnt. No expensive transport no one can afford to use.
@chad-lad
@chad-lad Жыл бұрын
First step of development is development of its human resource, look at Rwanda
@lesliegrace8360
@lesliegrace8360 Жыл бұрын
Do you see transportation in no man’s land? Demand vs Supply
@cumsquatch8057
@cumsquatch8057 Жыл бұрын
@@somethingelse9535 the trains in Kenya are affordable.
@kennethshen2893
@kennethshen2893 Жыл бұрын
I used to work in this project, I was in charge of land acquisition, I am Mr. Shen. Hope my friends in Nairobi still remember me.
@Propapanda0213
@Propapanda0213 Жыл бұрын
工作不容易,辛苦了
@petergreen5337
@petergreen5337 Ай бұрын
❤excellent work. Congratulations.
@TheGuggo
@TheGuggo 25 күн бұрын
Would a Kenyan citizen ever be allowed to be in charge of land acquisition in China? I guess not.
@robertdy1737
@robertdy1737 22 күн бұрын
is china really pursuing with the belt n road
@cjoo407
@cjoo407 Жыл бұрын
Kenya should be proud to have new rail transportation. Profits will return in due time. No needs to worry much. 💪🏻
@luisf2793
@luisf2793 Жыл бұрын
Mate it’s 3 billion dollars Worry at least a little
@pyrophobia133
@pyrophobia133 Ай бұрын
@@luisf2793 those natural resources will more than pay for itself
@niks7783
@niks7783 Ай бұрын
Lol.. Kenya really benefited from this Chinese loan. Now they have a regular seat at the IMF table and their public is partying on the streets. All thanks to China
@leonardpearlman4017
@leonardpearlman4017 Ай бұрын
This has worked OVER and OVER in China and elsewhere. Here in AMERICA we were once excited by things like Transcontinental Railroad, the Golden Spike and all that. We found it worth doing as a bunch of private ventures, how much more as a state-owned enterprise?
@mayy9685
@mayy9685 Ай бұрын
@@luisf2793 I think you are forgetting how rich this place is… all those resources and human capital they have it will eventually pay for itself
@mathew3103
@mathew3103 Жыл бұрын
This video doesn’t cover all sides of the story. The SGR project is meant to have long-term benefit, even if it doesn’t pay for itself in the short-term it still has major long-term economic benefits, especially as new markets and complimentary infrastructure is developed over time. This video also fails to mention the benefits provided to the people of Kenya by the passenger rail service of the SGR. Maybe instead of trying to push a narrative of China Belt and Road world domination you should actually look at what these projects are accomplishing and how the people benefitting from these projects feel about them. Western countries could be doing much more to help Africa develop it’s infrastructure but instead they are trying to villainize China for providing the economic support they fail to give.
@danielch6662
@danielch6662 Жыл бұрын
Build giant infrastructure, the economy does not immediately jump up 5000% within 12 months to take up 100% of the built capacity. Why do we pretend to be surprised by this. This is stupid. Demand will grow. Because economies don't grow instantly. It will ramp up.
@BrightWendigo
@BrightWendigo Жыл бұрын
Any wealth that pops up will be sucked from the surrounding local communities. You should listen to America, we are smarter then china
@coolhippies1533
@coolhippies1533 Жыл бұрын
The problem with these economic assistance however are the contracts China offers. What benefit do these projects give if the countries default on the loans and China regains control of the infrastructure? Many countries inevitably end up paying huge loans for nothing.
@user-gc1hg9sp9k
@user-gc1hg9sp9k Жыл бұрын
@@coolhippies1533 it still far more better than default on IMF debt, if your default on IMF debt your country are force to cut spending and privatize many of state industry. And even IMF could potentially influenced the country politic. And most of those IMF loan are end up on the corrupt politician, and leaving nothing to ordinary citizens Chinese loan on the other hand still give you an infrastructure that ordinary citizen could use and benefit from it
@gunsumwong3948
@gunsumwong3948 Жыл бұрын
I believe every Kenya is proud of having this SGR. It is their railway. They now has a rail industry employing thousands of people. There have been a lot of videos on young Kenya girls trained to be SGR drivers or engineers and technicians. China is the main lender who may lose money but Kenya always wins. The funny thing is I think China doesn't mind at all because it has donated hospitals, schools, university, sport stadiums, parks, Africa Union HQ building and CDC to the African nations. China is there to share future together.
@kipsangaaraplimo1442
@kipsangaaraplimo1442 Жыл бұрын
It's so funny how the west review African matters😂. Dude, ask Kenyans whether they like sgr or not, simple poll. 80% like will be an underestimate
@ims3312
@ims3312 Жыл бұрын
😂The wsj doesn't even pretend to care about sub-Saharan Africa. It only cares about China.
@stevensmith2078
@stevensmith2078 Жыл бұрын
I like my BMW too, which cost three times as much as it should. I still should not have overpaid and should have bought a Toyota instead.
@krishnanunnimadathil8142
@krishnanunnimadathil8142 Жыл бұрын
Sure they like it. Everyone does. The only question would be whether they can pay for it.
@ezioauditore5616
@ezioauditore5616 Жыл бұрын
jealous westerners cant even make an hsr, california hsr wasted 100b and still nothing to show
@rncmv
@rncmv 5 ай бұрын
@@stevensmith2078 you should have offered a better deal
@garethxue8938
@garethxue8938 Жыл бұрын
300 miles, started in 2014 and finished in 2017, Miracle. Impossible in the UK, US and Germany
@WJV9
@WJV9 2 ай бұрын
No problem if you can just take the land and not have to fight lawsuits for confiscating private property.
@garethxue8938
@garethxue8938 Ай бұрын
@@WJV9 There are a number of private properties still in the highways/motorways in China as the government and the property owners failed to reach an agreement, though the government had raised the compensation. Do you have any examples that 'confiscating private property'?
@paulmitchell5349
@paulmitchell5349 Ай бұрын
Germany already has great roads and railways.
@garethxue8938
@garethxue8938 Ай бұрын
@@paulmitchell5349 The Berlin Brandenburg Airport took14 years after construction started and 29 years after official planning was begun.
@davenobody407
@davenobody407 Жыл бұрын
Under the same logic every road in Kenya is built with a loss and is not profitable, therefore Kenya should not have invested in any roads whatsoever.
@steventan2550
@steventan2550 Жыл бұрын
The US has been claiming that the BRI is a debt trap and highlighted the woes of Sri Lanka as a typical example. But only 10% of Sri Lanka's debt is owed to China. The rest is owed to Japan and institutions in the west like IMF, World Bank
@AGP335
@AGP335 Жыл бұрын
The debt-trap narrative is indeed false; however, China did undeniably contribute to the Sri Lankan crisis more than other international lenders. This was not out of malice as some suggest, and China should not be villanised for this, but it was rather out of lack of scrutiny - they approved massive loans for extremely short-sighted and sometimes straight up corrupt projects in Sri Lanka, such as those in the former President's home province, including a massive container port, international airport and stadium, which have all been pitifully underused since completion. It was evil of the Rajapaksa family to be so corrupt, and they are the ones to villanise for this. However it was also clearly irresponsible of China to lend out their own bank's money and bring a developing country under a higher debt burden for the sake of extremely silly projects.
@Aman_Bhau
@Aman_Bhau Жыл бұрын
@@AGP335 china contributed? Lol what world are you living in?
@SeattlePioneer
@SeattlePioneer Жыл бұрын
@vengeance5322
@vengeance5322 Жыл бұрын
Japan is also 10%, world bank also about 10%. Almost half is market borrowing where the sate issues bonds etc to borrow. Chinese loans are offered at very high interest rates and impossible conditions, stop fooling people mister Steven🙄
@irvanabidin7440
@irvanabidin7440 Жыл бұрын
​@@vengeance5322 delusional
@MrNeversweat
@MrNeversweat Жыл бұрын
It's not even 2 years since it was launched and our negationist friend living far away from Kenya knows more than us that the railway isn't not profitable. It's not always about financial aspect but the chance to connect A,B to C and Unify the country, even in China some routes aren't profitable but they are essential
@JosephMwema
@JosephMwema Жыл бұрын
They cannot decouple the usefulness of SGR to the citizens of Kenya outside the prism of capitalism. The imperialists are always dogged by this one trait because as long as they are not monetarily benefiting from it or see how they can milk it, then it is a useless endeavor.
@Immigrantlovesamerica
@Immigrantlovesamerica Жыл бұрын
So many Chinese supporters on here.
@mwangiirungu3670
@mwangiirungu3670 Жыл бұрын
@@JosephMwema they think it isn't good as long as its not done by them
@Western_Decline
@Western_Decline Жыл бұрын
@@JosephMwema We know White lies when we see them.
@segalliongaming8925
@segalliongaming8925 Жыл бұрын
So the benefit of the railway isn’t profit, but rather political? Good to know. I hope Kenya’s friendship was worth the price that China paid.
@frankzambezi
@frankzambezi Жыл бұрын
Unlike debt from the West, they have a railway to show for it
@robert-zg8or
@robert-zg8or Ай бұрын
All I can say is the line from Vientiane to luang prebang laos has been a huge success. People there use it everyday. I've used it several times. Always on time and very clean.
@TheDd2402
@TheDd2402 Жыл бұрын
Irrespective of the view that China is putting countries into debt I think infrastructure development changes the economic prospects of locals much faster. The US has been exporting military hardware rather than focusing on infrastructure development across the globe. It just doesn’t work long term.
@lethalronnie7729
@lethalronnie7729 Жыл бұрын
And that military hardware are the source of war
@seanbryan1739
@seanbryan1739 Жыл бұрын
Use your brain. USA 🇺🇸 guarantee African countries a market for their manufactured goods. China has not. Smh 🤦‍♂️
@johns5558
@johns5558 Жыл бұрын
Agreed. Western Analysts should be wary to do genuine comparison of what the Chinese are offering versus what Western Capital has offered and achieved in Africa. "Placing countries in debt" is not a worsening of terms, that's merely the Chinese doing instead of a Western entity. The question is: "Whats the trade?" Infrastructure is a better trade than military hardware or possibily defoliating and corrupting nations for natural resources.
@doujinflip
@doujinflip Жыл бұрын
Conveniently ignoring all the relief, education, and smaller site projects America funds abroad, which aren't so flashy for local politicians and in fact tend to work against entrenching the incumbents by breaking down tolerance for corrupt governance.
@ScoobieDoo-zy1rh
@ScoobieDoo-zy1rh Жыл бұрын
@@doujinflip build schools to brain wash the populace is good , supply weapons to them , regime change . Rinse and repeat. No wonder Africa is the way it is … 🤦‍♂️
@peterkariuki9475
@peterkariuki9475 Жыл бұрын
In defense of the SGR railway ... It's has really improved transit btwn the 2 cities and was a huge success ...it may not have been profitable but you can't compare such huge infrastructure that will be there even after the debt had been paid .it's not always about profits it all about long term economic growth. Plus the Imf and world bank never invest their money in infrastructure . Atleast people can see what they are paying for with the SGR .
@jeffitachi2589
@jeffitachi2589 Жыл бұрын
Yeah true 100 percent
@user-gc1hg9sp9k
@user-gc1hg9sp9k Жыл бұрын
And also most of IMF debt are not effective because many of the fund are corrupted by local politician, at least Chinese loan are creating an infrastructure that an ordinary people could use and benefits
@peterkamau595
@peterkamau595 Жыл бұрын
This is not true. SGR did more harm to economic growth than benefits. 1. Opportunity cost. Could that money have been used elsewhere to produce greater economic benefits? 2. It ruined Mombasa's economy. Cargo trucks owners went bankrupt. 3. It made transport more expensive. Transit via cargo is almost half the cost of transporting via SGR. 4. General corruption. The contracts are still privates but we had information that over 1.5 million was used monthly on credit. Land compensation was also full of corruption cases. The SGR in the long run will drag economic growth unless its profitable. We don't have endless resources to support such white elephants
@redakteur3613
@redakteur3613 Жыл бұрын
if it consumes more than it’s produces it’s not an “economic growth”. This is an economic slowdown
@peterkariuki9475
@peterkariuki9475 Жыл бұрын
@@redakteur3613 I don't know what made you think Kenya Is not capable of paying it's debt but the truth is that Kenya is well capable.
@justhoodug
@justhoodug Жыл бұрын
Just like roads, water, electricity and public hospitals, the SGR should be treated as a utility not at how much money it makes. SGR is a public utility and service to people. I have just returned back from Kenya. I spent 9 hours and USD13 on the road from Nairobi to Mombasa, it's a super risk highway with trailers. Anything can happen on that road. My return journey on the SGR was 4 hours shorter safe and costs 5 dollars less than travelling by road. Reaching Kisumu and Kampala, will quicken movement of people between those countries
@sans3go342
@sans3go342 Ай бұрын
Why hasn't the Wall Street journal these types of projects are part of a debt trap diplomacy to burden some of these smaller countries and allow at Chinese foothold in their country?
@tongbohuang
@tongbohuang Жыл бұрын
And we still don't have train between San Francisco and Los Angeles. Fml.
@benjaminlehman3221
@benjaminlehman3221 Жыл бұрын
I know right. 300 mile track in 3 years AND ahead of schedule. Never would have happened in the US
@johnsamuel1999
@johnsamuel1999 Жыл бұрын
This is a normal train , not a high speed rail like in CA
@billyhe2724
@billyhe2724 Жыл бұрын
@@johnsamuel1999 the last train track built in Kenya was by the British, over 100 yrs ago. That’s how big the deal was when China built this.
@vijananarutomovement7625
@vijananarutomovement7625 Жыл бұрын
@@billyhe2724 kinda true
@skipperson4077
@skipperson4077 Жыл бұрын
Amtrak between Oakland and LA is $51 one-way with 20 trains/day. It took me approx. 10 seconds to find this...
@tonglu3699
@tonglu3699 Жыл бұрын
Shortsightedness -- this is exactly why the US has such shitty infrastructure while printing money to fund meaningless market speculation. A railway is supposed to be used for decades. It'd be a miracle if it starts to be profitable in just a couple of years, even in a developed country. In fact many infrastructure projects are never profitable by themselves, because they don't profit directly from much of the economic value they create: it's not like a railway station or an airport can collect taxes on the businesses pop up around them. And lastly, as a Chinese national, I find it hilarious that nobody seems to understand the exceedingly simple business model of B&R. It's not an investment program. It's selling infrastructure via financing, just like how houses and cars are sold around the world.
@HTV-2_Hypersonic_Glide_Vehicle
@HTV-2_Hypersonic_Glide_Vehicle Жыл бұрын
Shortsightedness is not the only thing. You forget about many other things. Who will use it. Who will pay for it. Who will build it. How much it will cost. How safe it will be. How it will benefit society. What will the reaction by the public be after the first year of service. Many many factors. Also will the government allow for it. Checks and balances are supposed to help the citizens of the United States, but the Senate in the federal government really causes the lack of progress for the United States because the United States has been so divided since the '90s.
@HTV-2_Hypersonic_Glide_Vehicle
@HTV-2_Hypersonic_Glide_Vehicle Жыл бұрын
When you rely on one group of the federal government to decide whether or not a project gets the green light or not, and that one group is divided in and of itself filled with people with their own self-interests that disagree or that don't understand that have the ability to cancel any given project or proposal, that's why the United States is so far behind.
@HTV-2_Hypersonic_Glide_Vehicle
@HTV-2_Hypersonic_Glide_Vehicle Жыл бұрын
The B&R... "It's not an investment program. It's selling infrastructure via financing, just like how houses and cars are sold around the world." Though it's not an investment program, the Chinese government does expect big returns of benefits after the B&R is complete. One thing that they expect is more money for energy or ease of access for energy to be brought inside the country. Easier trade more trade with countries that are connected to China via Belt and road. And also legislative influence and power through relations with the belt and road. Countries that have shaken hands with Chinese officials that agree to allow China to help their country will be more likely to vote alongside what China believes. Which can have a huge impact in the future.
@mathew3103
@mathew3103 Жыл бұрын
Really well said, the economics of infrastructure is different from other kinds of business investment. This video does not tackle the long-term benefits of the project. There was also no mention in this video of the passenger rail services provided by the SGR which have been very helpful to Kenyans
@AW-tc4hy
@AW-tc4hy Жыл бұрын
Good point. The infrastructure actually contributes to overall growth
@hyuxion
@hyuxion 8 ай бұрын
So if I understand correctly, WSJ did this video without interviewing any of the government from Kenya or China, and they got all the information from internet? Damn, is this how journalism being done nowadays?
@MrVasco07
@MrVasco07 8 ай бұрын
Their idea is to bad mouth this project. Make it look like it was a failure and that the people of Kenya were going to pay dearly.
@ChefGeorge
@ChefGeorge 2 ай бұрын
As a kenyan ,all my friends are happy about this railway and we enjoy it. Nothing else matters.
@niks7783
@niks7783 Ай бұрын
You have to pay for it.. Or maybe ur children will
@patrictutaki3786
@patrictutaki3786 Жыл бұрын
The development of a railway transport system will be advantageous once the mining industrialization throughout Africa comes online
@waynehewett4017
@waynehewett4017 Жыл бұрын
There's no point if the railway doesn't reach thoses so called mines or transport hubs is it What happens if it cost another 3.3 billion dollars to build that infrastructure The railway is losing 200 million dollars per year now and still owes 3.3 billion dollars plus interest This railway was nothing but a debt trap in the ccp favour from the start
@robinlecomte1242
@robinlecomte1242 Жыл бұрын
Will China be involved in that process? If so, will the mining extract be exported, via Mombasa port to China? Me thinks yes!
@hasanjamalkhan689
@hasanjamalkhan689 Жыл бұрын
Net sucks 😕
@waynehewett4017
@waynehewett4017 Жыл бұрын
@@robinlecomte1242 due to the CCP greasing the Kenyan government officials There is no difference between the CCP and the Marfia
@gontse1386
@gontse1386 Жыл бұрын
@Thomas Jordan what's funny
@kolejny111111
@kolejny111111 Жыл бұрын
long term the rail line will no doubt be beneficial, it is early to judge, for cargo volumes logistics might be a problem but eventually it will be resolved. Kenya is a very populous country, Nairobi and Mombasa are very big cities, there is great distance and people inbetween them, it just cannot go wrong if it is well managed
@JB-yb4wn
@JB-yb4wn Жыл бұрын
You really hit the nail with that comment. Management and cronyism is the biggest impediment to African development.
@johnstreet819
@johnstreet819 Жыл бұрын
famous last words for another crynese debt trap
@u-know-this
@u-know-this Жыл бұрын
IF IT IS WELL MANAGED underline that 100 times
@felixdatche9278
@felixdatche9278 Жыл бұрын
The Western media is stupidly obsessed with blowing out of proportions a few challenges here and there. These projects are very viable. Watch this space.
@Edward4Plantagenet
@Edward4Plantagenet Жыл бұрын
When you put your money, You can wait., Bite nails, sleepover. When you take credit, It must be returned in time.
@thomashunter5645
@thomashunter5645 Ай бұрын
Because of a loose belt, the Chinese pant fell down on the road.
@silvershsadow2045
@silvershsadow2045 Ай бұрын
An Infrastructure project is like educating a child. This means to empower him to be more productive in future, and then have a better society. Not to expect him to pay back quickly but for a better future.
@TheGameTrainzHD
@TheGameTrainzHD Жыл бұрын
Insightful. I hope all turns out well for these projects. It’d be nice to see East Africa prosper even more.
@ericciaramella1984
@ericciaramella1984 Жыл бұрын
Belt and road is a scam to extract resources. Why is it that kenya and every other country is contractually obligated that chinese companies build the projects using Chinese workers. No African employees. So no benefit to local economies. These projects are rarely ever used just like homes and apartments in China itself. $200M loss per year is just the start. Just wait until it has to be repaired by Kenyans who didn't build it and who don't work on it. It becomes a 3 billion dollar piece of trash then.
@dudeimstoned5141
@dudeimstoned5141 Жыл бұрын
Are you guys blind? The project is making 200m$ loss per year. Project is made with Chinese items, Chinese loans and Chinese workers. And Kenyans paying interests to china as well as paying up losses. No idea why Africans getting trapped to china even after they saw situation in srilanka, pakistan...
@richardarriaga6271
@richardarriaga6271 Жыл бұрын
A no-bid contract? Those go over well 🙃
@sepg5084
@sepg5084 Жыл бұрын
@@richardarriaga6271 even if it was a no bid contract, the railway is already built though and is already functional. Even if there was bidding, that won't suddenly increase the amount of freight that will use the railway service.
@cooper1819
@cooper1819 Жыл бұрын
@@richardarriaga6271 Was the price inflated? How much would others charge to build similar railway? How much from Americans or Europeans or Japanese, Koreans? Maybe the Chinese were too low for others to make money.
@FMercuryEA
@FMercuryEA Жыл бұрын
The SGR is a good idea only that the section done is too short and captures a very small catchment area or zone. Had this line gone all the way to DRC and in particular Goma DRC and Kisangani DRC not forgetting it's northern route to Juba south Sudan, then it would be a viable opportunity to open all sectors including tourism. The opportunity is still there but there was underinvestment in terms of extent of the catchment area. By the way, who hasn't noticed that local tourism is at it's highest and nearly all year round at the coast of Kenya ie diani, watamu, Mombasa etc. This is courtesy of the SGR Kenya.
@our10picks18
@our10picks18 Жыл бұрын
Each East African country is responsible for the building of their own SGR sections! Some countries are a bit reluctant to this!
@JosephMwema
@JosephMwema Жыл бұрын
Very true! This coupled with free movement of people and goods around East Africa.
@eacoincmubiru5894
@eacoincmubiru5894 Жыл бұрын
Fine Mercury you are 100% correct. If it connected to Uganda and South Sudan, it would have been viable
@valerievankerckhove9325
@valerievankerckhove9325 Жыл бұрын
This guy gets it. Infrastructure has multiplicative effect. Building transportation from A to B may be a little useful. Once you've also built transportation from B to C, then the A to B section becomes very useful. If you Then build a section from C to D or from B to E, then A to B becomes extremely useful. However, you need to start somewhere. Africa needs to go through this painful process where each section built will only seem a bit useful, but once everything is connected, Africa's potential will explode. China has unlocked the world's biggest e-commerce market as well as huge domestic tourism, plus a huge number of business men are traveling all over the country searching for and creating opportunities. This is all thanks to investing in all sorts of infrastructure from transportation to internet connectivity, and one day Africa will reach this point too.
@kentosh120
@kentosh120 Жыл бұрын
But 80 percent of cargo from Mombasa port is for Nairobi and it's environment. Why spend billions of dollars loans for 20 percent of cargo to other parts of Kenya and beyond?
@ericpmoss
@ericpmoss Ай бұрын
Somehow I doubt the WSJ would criticize this if it were just another highway that cost a fortune.
@jacktonowino
@jacktonowino Жыл бұрын
You should continue doing a lot of videos about Kenya. You will never go wrong.
@360decrees2
@360decrees2 Жыл бұрын
It often takes a long time for projects like this to pay off. And from what some of the other commenters have shared, it appears to have yielded serendipitous benefits that may improve local life and the economy overall. Lacking knowledge of the history of great projects, I couldn't say how long it took for the Hoover and Aswan Dams or the Brooklyn or Golden Gate Bridges to 'pay off'.
@physiocrat7143
@physiocrat7143 Жыл бұрын
Land values go up.
@bonikula9150
@bonikula9150 Жыл бұрын
I visited Kenya to specifically use the SGR. The citizens who use to do a 12hr commute now spend less than 5hrs on the same trip. It costs $10 which is pretty affordable for the average person. It might be an expensive project, but in the long term it really improves the lives of the Kenyan people. China will continue to win in Africa and Asia because they provide funding and do not interfere with local politics. Unlike other forms of funding which come with a lot of political strings attached
@Mydisdain4beggerz
@Mydisdain4beggerz Жыл бұрын
I feel sorry for you.
@lcox6468
@lcox6468 8 ай бұрын
And you don’t think at some point they will want a return?
@rncmv
@rncmv 5 ай бұрын
@@lcox6468 anybody does want a return of an investment; IMF
@mayy9685
@mayy9685 Ай бұрын
@@lcox6468I’m pretty sure they are getting interest payments.
@olivermboya3857
@olivermboya3857 Жыл бұрын
An interesting look into what is happening... Thanks for that
@lvseka
@lvseka Ай бұрын
Why are railways subjected to the idea of profitability while roads aren’t?
@goodjoseph220
@goodjoseph220 Жыл бұрын
another pampered west kid knows a lot about Kenya and he's here to advice us on what we should have done.
@kongwee1978
@kongwee1978 Жыл бұрын
They are brainwashed to comment on any and everything by their mainstream medias.
@spider6660
@spider6660 Жыл бұрын
First of all, the railways are not something for profit. But it'll create more job opportunities in other ways such as repairing yards, cargo and port related jobs, supply chains, reduce the use of fuel ⛽ for truck transportation, etc.
@thesheeplelookup
@thesheeplelookup Ай бұрын
Rails, and Roads are not necessarily profitable, they are the ROADS to profitable businesses.
@niks7783
@niks7783 Ай бұрын
Lol.. Kenya really benefited from this Chinese loan. Now they have a regular seat at the IMF table and their public is partying on the streets. All thanks to China
@saintpatrick6681
@saintpatrick6681 Жыл бұрын
Shelby is a great ride
@thetooginator153
@thetooginator153 Жыл бұрын
This story would be more interesting if it mentioned how much cargo needs to be transported to the coast from Nairobi, and whether any company could have built a railroad of the same quality for less.
@TohaBgood2
@TohaBgood2 Жыл бұрын
They did. There’s literally a graph that shows that they are currently transporting about 1/10th of the cargo they need to be hauling. And “quality” is not exactly something that Chinese construction is known for. You can see the leaning skyscrapers and falling viaducts and buildings that Chinese construction companies have built both inside China and internationally. It would be trivial to match that level of “quality”.
@dgthe3
@dgthe3 Жыл бұрын
@@TohaBgood2 That's not quite what he was getting at. He was asking how much cargo, by every means, goes along that route. If you need to send 90% of it by rail for the rail line to be profitable, it probably isn't going to work out. But if it's only 10%, that's achievable. That being said, I'd be willing to bet that China was never overly concerned with whether or not the line makes money.
@thetooginator153
@thetooginator153 Жыл бұрын
@@dgthe3 - Exactly! I also agree that China isn’t interested in whether the line makes money. The Belt and Road Initiative seems mostly about political and economic influence, not profit. Also, it seems counterproductive for China to make low quality infrastructure because the point is for developing countries to look to China for their infrastructure development.
@Propapanda0213
@Propapanda0213 Жыл бұрын
@@TohaBgood2 You are just imagining from your poor stereotypes. You are just using that several cases repetitively and that’s everything you could imagine of. Which country does NOT have engineering disasters or corruption issues? I’m not saying China is better in containing corruption but reminding you that the amount of infrastructure built in China every year is higher than the rest of the world.
@TohaBgood2
@TohaBgood2 Жыл бұрын
@@Propapanda0213 I'm "imagining" from a leaning Chinese tower in my home town that is now costing nearly triple to fix! Otherwise that tower will fall on other towers and on a multi-billion dollar train station! And the question is not if engineering mistakes happen. They happen everywhere. The question is about the utter disregard for safety and sound engineering practices that Chinese firms practice. Those firms are bred in a non-competitive internal Chinese market where everything is decided by nepotism. And we see how that makes those firms incredibly corrupt and incompetent. They're just not capable of sound engineering in a competitive and safety-minded market because they have literally never had to do it in their own country.
@zinjanthropus322
@zinjanthropus322 Жыл бұрын
Most railways aren't profitable.
@billyhe2724
@billyhe2724 Жыл бұрын
Most infrastructures are not because it’s not pure market good. It is the responsibility of a government. You don’t always measure simple financial ROI on infrastructure investment.
@HTV-2_Hypersonic_Glide_Vehicle
@HTV-2_Hypersonic_Glide_Vehicle Жыл бұрын
@@billyhe2724 correct Mr. He
@sbkarajan
@sbkarajan Жыл бұрын
In case of Kenya, I think the US is sabotaging and badmouthing the Chinese effort. Did you know that it was the US or its stooges who blew up the nordstream pipelines just couple of weeks ago? The US will do anything to desperately keep itself at the top, but time is running out.
@EduardoEscarez
@EduardoEscarez Жыл бұрын
I think the point of the video is that the railway was built with the idea of being profitable to pay its loan, but it hasn't for several reasons and someone need to pay the debts. And it isn't only about Kenya but also about how China financed projects without enough consideration and its hurting its own bank's finances either though defaults, write-offs or refinancing in a moment when its economy is struggling with other issues. Also, how BRI isn't going to repeat this kinds of plans on the future.
@millionantschannel5528
@millionantschannel5528 Жыл бұрын
@@EduardoEscarez Kenya’s Chinese debt constitutes less than ten percent of the overall national debt, Kenya is a middle income country which can sacrifice and pay the total Chinese debt in a year if worse comes to worse. There’s no time that Kenya defaulted to pay its debt obligations. Kenyan government decision to go for the project was purely for the long term benefits and not short term. The west still angry for not being given the project
@getreal6595
@getreal6595 Жыл бұрын
Would love a study on the Tanzanian SGR too , Thank you brother !
@itgamingke
@itgamingke Жыл бұрын
It's done yet or even commissioned
@thiesemuel
@thiesemuel Жыл бұрын
Railway system is one of those infrastructures that require long term vision. So let's not debate about it now.
@David-gy6fv
@David-gy6fv Жыл бұрын
SGR Will expand to Uganda, Congo and Southern Sudan to conquer the region. This is the best thing that ever happened to Kenya. The current problem is due to Politics and change of government but the new government has no choice but to follow up with dept payment. Kenya was amoung the few Countries that benefitted enormesly from China belt and Road project since our economy was ready to expand. Not all countries had the same chance.
@robbiedozier2840
@robbiedozier2840 Жыл бұрын
Man it’s almost like rail is an inherently unprofitable venture and should be seen as a public service
@fahemhamou6170
@fahemhamou6170 Жыл бұрын
Thank you very much
@user-xi2zu9wz3c
@user-xi2zu9wz3c Жыл бұрын
I am Chinese, not a bot. I hope this SGR could be profitable early for Kenya. As an infrastructure, it offers a choice for people living on the land, and it will change the movement of people, and goods, the same as things happened in China. Some focus on the future, and some focus on the present.
@leonardpearlman4017
@leonardpearlman4017 Ай бұрын
Some focus on the NATION, and some focus on their STOCK PORTFOLIO.
@djfreddiereddie
@djfreddiereddie Жыл бұрын
Even Amtrak in USA doesn’t make any profit !!! Majority of lines in US are private with monopoly! Meanwhile Ruto messed up tho Railway was built and running well before truckers killed rail transport!!
@ashutoshtare9079
@ashutoshtare9079 Жыл бұрын
The car manufacturers and the oil corps never let usa have a mass transit. While Europe, China and India built huge networks of it.
@alanlight7740
@alanlight7740 Жыл бұрын
America's passenger rail is not profitable. But America's rail freight is some of the most profitable in the world.
@andia968
@andia968 Жыл бұрын
you look from a business man point of view, that is it has to make money. The problem with this thinking is public infrastructure is not meant to make money but to serve people and to stimulate economy which in turn will result in economy growth and as a result government tax revenue will be bigger . How about dam,highway, bridges. Should government make profit out of those? Those three above lose money but is needed to stimulate economy. China has been doing this method sucessfuly since 40 years ago started with normal rail network. Public transport is subsidized by government to provide affordable transportation for people. Isnt that what government supposed to do? To serve people and not to make money out of them ( business man thinking) China is not purely capitalistic. Using US logic than all fast railroad will never be built at all. It is no wonder why public transportation in US poor .Take a look at NYC subway and compare it to nanning (a 3rd tier city in china) subway. The contrast is like heaven and earth.
@Bloodlinedev
@Bloodlinedev Жыл бұрын
@@andia968 Thank you, that is on point
@rncmv
@rncmv 5 ай бұрын
@@alanlight7740 "America's passenger rail is not profitable." passenger railway service is never profitable; it is not even supposed to be profitable; only in screwed Gringo minds
@bestdrip3377
@bestdrip3377 Жыл бұрын
Entire premise of the video is that infrastructure should pay for itself, which is very often far from the truth.
@gunsumwong3948
@gunsumwong3948 Жыл бұрын
Yep every public road is free to user in every country but the local government has to maintain it for ever.
@LCTesla
@LCTesla Жыл бұрын
On a national level it should pay for itself, in terms of direct and indirect benefits. My understanding is that is also in question. It's all just running way too far ahead of places like Kenya being worth connecting on this scale.
@stevensmith2078
@stevensmith2078 Жыл бұрын
Your comment is largely true. The question is whether the cost, including the losses, is worth it. If it still costs more to move cargo from Mombasa to Nairobi than from Shanghai or Miami to Mombasa, when cargo transported by truck is cheap (much cheaper than by truck), then there is no advantage and Africa will remain uncompetitive in trade, which is the tried and tested path to economic strength. Simple arithmetic can be applied to see if the price was too high, the loan term too short, the truck lobby too strong, and the passengers too few to cover maintenance and operating costs. Kenya should have built this basic infrastructure themselves.
@gunsumwong3948
@gunsumwong3948 Жыл бұрын
@@stevensmith2078 That is the difference between the western and Chinese attitude towards roads and rails. Hundreds of trucks and the fuel cost plus the deterioration of the road and the vehicle can never be cheaper than by rail. If it is the other way then it is to do with pricing of the services. The most important benefit of the new infrastructure is the economic development it brings. The land value surrounding every station is guaranteed to rise possibly 10 times. New towns and cities could be developed. The new tax revenues from the passengers and the freight earned by the government are real benefit but are not on the SGR's book. The gain in economy associated with the SGR is impossible to calculated. The SGR spawns a new rail industry that provides hundreds and thousands new jobs in management, operating, signalling, maintenance, training centres and repair shops. The technology transfer itself is also substantial because Kenya now has to master the complete system. When China tried to buy the Germany's HSR system the cost of technology transfer was same as the HSR itself. A BRI project is win win arrangement. If China loses out that means the host country wins more. The overall result still fulfils the spirit of the BRI. China is doing a lot of things for free in Africa. It built schools, water supply systems, hospitals, sport stadiums, a CDC centre and the African Union Head Quarter as gifts. Most free donation of Chinese vaccines end up in Africa. Since 1963 China has been sending medical teams to provide free medical services initially to Algeria and later to many African countries. Today there are 45 to 50 medical teams still operating. It might have nothing to do with it but the African continent with 54 countries put together still has less infected cases and covid deaths than the US. It has been like that since the covid started! Kenya is building the SGR itself. China is assisting in whichever department Kenya needs help. You may have not seen the youtubes videos of Kenyans being trained in their SCR trains manufactured in Chinese factory or the drivers trained in China's HSR system. In a nutshell a lot of China's own HSR lines do not make profit and a few wouldn't even be able to pay for the electricity consumed but China is still building them to suit its development plan which could be 10 to 15 years ahead. You can dispute it but the Chinese experience is to be come better off the first step is to have the infrastructure available.
@stevensmith2078
@stevensmith2078 Жыл бұрын
@@gunsumwong3948 The SGR is a great idea. Infrastructure needs to be built (and maintained) first. I promote that and that is not the problem. The problem is that the basic infrastructure, which is not complicated, should be built by Africans. The complicated technology of the trains is built in China, which is fine in the short term. Are Kenyans, Africans engineering the trains in China and getting technology transferred? This is what Africans should require and what China did. Do you disagree? Learning to drive a train is not transfer of knowledge and is less than flying an airplane (as if pilots flying Boeing and Airbus planes is knowledge transfer. Delete that nonsense from your post). The issue is one of cost of the line, it not going to where the demand is, the loan repayment period being too short, etc. Please keep the propaganda. My comments are not anti-Chinese, or pro-West. They are pro-Africa and I will continue to point out issues where they exist.
@modemmann303
@modemmann303 Жыл бұрын
Interesting. Thanks! :)
@leehsu2414
@leehsu2414 Жыл бұрын
China's High Speed Railway is losing big money every year. But, see how China has become? As a Chinese, I would rather my country loose money for building something useful to improved human condition, whether for Chinese or not. This is a much better way to spend the money on weapons.
@simonjaz1279
@simonjaz1279 Жыл бұрын
China has become less wealthy and has a shrinking population and no allies with contant rebellions to install a democratic government while it also has camps for certain Muslim groups? Yeah great
@joeferreira657
@joeferreira657 Жыл бұрын
Railways opened up economy's all over world,people can travel quicker, long-term binifits for country, quicker safe transport. Amazing engineering connecting two city's, eventually will be paid for.
@jeffitachi2589
@jeffitachi2589 Жыл бұрын
I am a Kenyan and I disagree with most parts of this report.The SGR rail project has more prons than cons.Since its launch more than 7.8 million passengers have been ferried by it , transportation cost and time has been reduced by close to half,more towns and industries have popped up along the railway line just to mention but a few.It's not a must for it to make profit immediately for it to be considered successful.Easier movement of goods and services means more taxes collected by the government thus in the end Kenya will pay the loan back.The relationship between Africa and China will be even stronger in years to come ✌️
@user-gc1hg9sp9k
@user-gc1hg9sp9k Жыл бұрын
I think this guy are underestimated about indirect impact of railway on kenya economy And funny thing is this guy is complaining a railway run at loss while interstate highway that connect US aren't even make a single profit and cost billion dollar to maintain and expand
@jeffitachi2589
@jeffitachi2589 Жыл бұрын
@@user-gc1hg9sp9k Yeah well said facts 100 percent.This guy doesn't understand economics very well or just ignorant
@itgamingke
@itgamingke Жыл бұрын
Same views here
@AGP335
@AGP335 Жыл бұрын
The SGR is a good thing, no doubt. However the main point of the report, especially from the perspective of the Wall Street Journal, a fianance-focused news organisation, is to say that from China's perspective, the SGR was a short-sighted choice. They did not finance it out of charity; it was believed that the railway would be profitable immediately, an unrealistic expectation, and since their money will not come back as quickly as hoped, consequently (along with other financially dubious projects) they are scaling back their belt-and-road plans. I think the SGR was a good thing to build anyway, and will pay dividends in the years to come, cause the Mombasa Road certainly won't get any faster any time soon!
@kagz100
@kagz100 Жыл бұрын
Passengers don't pay the loan
@Geezerelli
@Geezerelli 24 күн бұрын
We tried that in Kalifornia for much more money and it got about one mile😂
@DinoCon
@DinoCon 9 ай бұрын
Question for all the people who actually use it: do you think that extensions from certain stations along the route, even small ones, could help improve ticket sales?
@AR21
@AR21 Жыл бұрын
Better than IMF loans which keep poor countries poor.
@daveygiturwa8598
@daveygiturwa8598 Жыл бұрын
Also western loans require regime change or coup's so as to be given👎👎
@AR21
@AR21 Жыл бұрын
@@daveygiturwa8598 👏👏 on point👌
@georgepresley5120
@georgepresley5120 Жыл бұрын
Do your research on IMF and save us your ignorance. IMF doesn't fund grand projects..they help countries manage balance of payment difficulties and chip in when international financial crises happen
@AR21
@AR21 Жыл бұрын
@@georgepresley5120 please do your research too.. Most countries can’t get out of the debt trap from IMF Neither are good but. At least China gives people a bridge or railway. The public can use!
@georgepresley5120
@georgepresley5120 Жыл бұрын
@@AR21 IMF can't give you a bridge or a road but it's the institution you will run to when you fail to pay for that bridge or road. The Chinese give you expensive loans with conditions that only benefits them. The SGR was funded by the Chinese,built by the Chinese and with Chinese materials. Even the staff running the SGR is Chinese
@adrianooliveira9144
@adrianooliveira9144 Жыл бұрын
Maybe you guys from the "first world" think just you deserve a comfortable transportation. Saying $200M loss in 2020 is a bit dishonest when you forget to mention the pandemic. Imaging that there were no roads between those two cities could be ingenuous not to justify the investment. But no, it's just the eternal racism rich country people and WS journalism throw away. An investment of this magnitude takes years to pay itself and to work on. What a terrible article!
@kevincui1631
@kevincui1631 Жыл бұрын
Exactly. The writer should be in shame
@pbworld7858
@pbworld7858 Жыл бұрын
Exactly. These privileged few enjoy good transport (except the Americans who might get a HSR next century), and yet they just don't want to see poorer countries develop. It's in their mindset that poorer countries stay poor.
@AGP335
@AGP335 Жыл бұрын
You're completely missing the point. WSJ is a FINANCE and INVESTMENT focused media organisation. The main focus of the article is not to say that the SGR is a failure objectively; it's to report that the project was expected to be profitable, and ultimately wasn't, and serves as a case study of to explain why the Chinese government is now scaling back its BRI plans. You see? You're just choosing to take offense from this factual report, which gives no opinion on development or transport quality, as that's not what the report is about.
@HTeo-og1lg
@HTeo-og1lg Жыл бұрын
@@AGP335 . Sorry, I have to call you out on this. WSJ is not just "a Finance and Investment focused media". Truth be told, it is has been at the heart of US domestic politics, as well as geo-politics in recent (circa since 2008) years. It uses pseudo economics metrics to be fanboys of QE 1 , 2, .... when Bernanke, Yellen, and Powell wanted to gather a "posse" to justify them. Now, the "mis-deeds" are coming home to roost, as we are at the cusp of an inflation beginning with only a reportedly 8.9%. Anyone who thinks that WSJ is not un-objective in their opinion pieces disguise as reporting, kindly note that I have a planet to sell at a price you can well afford. Interested?
@JaimeWarlock
@JaimeWarlock Жыл бұрын
Agree. I live in Kenya and I am seeing huge number of benefits from the SGR to the locals. This goes way beyond cargo revenue.
@alexanderivkin7086
@alexanderivkin7086 4 ай бұрын
When was the last time USA built a 600km railway out of nothing? 1880? This railway in Kenya is just the first step to finally industrialize Africa by force, so that their stone age life will change. You can not feed and deliver goods to 1,5 billion africans with stone-age methods or undermaintaned colonial infrastructure. This is why it´s very important that China controls everything, so that Africans can´t destroy what was built for them.
@handl3_me
@handl3_me Жыл бұрын
I'm thinking🤔 maybe it needs time to grow, nothing happens overnight.
@jouvertalandwa5337
@jouvertalandwa5337 Жыл бұрын
You always talk of big bad china yet France in Africa is the worst thing to ever happen to Africa
@bloggtalk5085
@bloggtalk5085 Жыл бұрын
thank God they have zero influence in kenya although they are one of biggest lenders to kenya
@user-gc1hg9sp9k
@user-gc1hg9sp9k Жыл бұрын
@@bloggtalk5085 and yet they say china is debt trapping kenya lol
@bloggtalk5085
@bloggtalk5085 Жыл бұрын
@@user-gc1hg9sp9k propaganda.$3.8b debt on a $110b economy is not drowning
@user-gc1hg9sp9k
@user-gc1hg9sp9k Жыл бұрын
@@bloggtalk5085 especially those debt are in form of infrastructure project, I would say that indirect benefit are outweight the cost of the project. Even the raise of land value alone could potentially cover the entire project
@H3LLS3NT4SS4SS1N
@H3LLS3NT4SS4SS1N Жыл бұрын
France?! What the west African’s did to themselves for Portuguese coin was awful and extremely destructive and has destabilized the entire region ever since! The actions of the agents of Belgian king Leopold II in the Congo were insane, aggressively inhumane and near genocidal! but surely the worst influence on Africa has been that of the Arabs and the Islam they imported to Africa. When one looks at the countries of Africa today, the Islamic countries have far worse human rights, violence, development and governmental stability. An excellent example is Nigeria: it’s mostly Christian southern realm is largely stable and relatively well developed, but it’s mostly Muslim northern realm is dilapidated and overrun with violent jihadist groups. The lands of North Africa should be wealthy, stable, developed and powerful since they are close to the trade hubs of the Mediterranean, Suez Canal and west Asia, as well as having a climate desirable for the production of many valuable crops, large and stable populations, easy access to fisheries, diverse and vibrant histories of advanced societies as far back as 900BC, and even large reserves oil and other hydrocarbons! Instead, they are lower-middle income countries with oppressive, authoritarian police state regimes, abysmal conditions for women, SLAVERY even today, weak educational systems, weak government institutions, huge populations of migrants attempting to flee and creating humanitarian crises and political disasters for the European states unlucky enough to have them flooding their shores in cheap inflatable rafts, rampant corruption and rampant violent Islamic terrorism. ALL of these problems can be directly traced back to the influence of Islam, sharia, etc. on the people and the state.
@elkiq95
@elkiq95 Жыл бұрын
Western propaganda. The SGR will pay itself. It's just hard times due to Covid and Ukraine war plus drought. The Railway is a great success.
@guydreamr
@guydreamr 2 ай бұрын
Do you have a source for any of those statements?
@petergreen5337
@petergreen5337 Ай бұрын
❤well said
@bruceboyer8187
@bruceboyer8187 Ай бұрын
Tomorrow tomorrow, it's always a day away..😅
@leonardpearlman4017
@leonardpearlman4017 Ай бұрын
How long does it take to pay for a big war?
@rtzx12570
@rtzx12570 2 ай бұрын
The Exim bank is a central govt owned bank. It is a policy bank not a profit generating bank. As trade increases over time it will benefit Kenya and the region as well as china. The current state railway in China does not make money but it is not designed too. The PRC makes 2 to 3 Bn dollars a day in surplus trade and the better the infrastructure into central Africa is over time the further this will increase. They have signed mineral deals with Uganda and they will with DRC as well in the future.
@shannonhalford3507
@shannonhalford3507 Жыл бұрын
Mirroring " investments " all over the Continent of Africa-see the pretty sparkly object-do you want it-it's yours! Without crunching the numbers, & being realistic regarding what would really be needed to pay back " a loan ". Have to read the small print, what natural resources secure the loan?-collateral. I am NY Toms very British future wife, Veteran, Middle East & Continent of Africa GREAT VIDEO!!
@scasey1960
@scasey1960 Жыл бұрын
CalTran in California USA requires 80 % of the revenue to come from State & Federal funds. Although a ticket from San Jose to San Francisco cost $20, the real cost of the ticket is $100 (the same as an Uber drive). Can you analyze other US railroad projects and actual revenue models? Africa seem the same as the US.
@seanbryan1739
@seanbryan1739 Жыл бұрын
USA didn’t borrow money from China to build it. California is the richest state. Use your head, see the difference
@physiocrat7143
@physiocrat7143 Жыл бұрын
US railways were funded substantially by land grants.
@pkwong1940
@pkwong1940 Жыл бұрын
Kenya needs to shout to the World there is no BRI debt trap. Tell the World what Kenya's debt is to China compared to outstanding loans owed to the western nations, the World Bank and the IMF. Why is there no mention of these debts owed to western nations, the World Bank and the IMF?
@itgamingke
@itgamingke Жыл бұрын
Ikr they want to make Kenya look like it struggles to pay its loans back to China when our relations go way back
@daveygiturwa8598
@daveygiturwa8598 Жыл бұрын
Tru👌👌🙌🙌
@unlockwithjsr
@unlockwithjsr Жыл бұрын
This is a US channel, what do you expect?
@riteshpandey814
@riteshpandey814 Жыл бұрын
Because Chinese give at 4% and IMF at 1 or 0.5%
@AMGW11
@AMGW11 Жыл бұрын
@@riteshpandey814 Of course I expected an Indian to say something negative about China.
@shogged
@shogged Ай бұрын
Can’t judge a railway by its first phase. Hope they can find a way to expand the network and create more opportunities for growth
@w0ttheh3ll
@w0ttheh3ll Ай бұрын
China's EXIM bank agreed to fund an extension running to the Ugandan border a month ago. Construction is planned to start this year.
@germaned.lealnino631
@germaned.lealnino631 Ай бұрын
I think china has figured out a way to make friends round the world without war. I hope Kenya expands their partnership with China.
@rh-bd6wv
@rh-bd6wv Жыл бұрын
18 months ahead of schedule! Bravo!
@funfab9146
@funfab9146 Жыл бұрын
What bravo Kenya is in China debt trap this What china want
@rh-bd6wv
@rh-bd6wv Жыл бұрын
@@funfab9146 No offense intended. Here in America, we see so many projects go over-budget, beyond schedule and/or unfinished, it was encouraging to hear about a project going better than expected. As to debt, we have more than our share of experience with that as well.
@feels.like.coffee
@feels.like.coffee Жыл бұрын
The irony of 'Wall Street Journal' talking about how being in debt is a bad thing, but if you take one look at wall street...
@LokiTheGodofMischief
@LokiTheGodofMischief Ай бұрын
It's only ok when they issue vulture funds to other countries or take money from Americans through predatory laons
@petergreen5337
@petergreen5337 Ай бұрын
Precisely
@redbaron6805
@redbaron6805 Ай бұрын
@@petergreen5337 Debt isn't a bad thing if you have revenue or a business plan to pay it back. Debt is bad when you have no bid contracts on a project that has no business case at all to ever be viable. It is astounding you can't figure out the difference...
@tomwitte3277
@tomwitte3277 Жыл бұрын
9 month later you talked about end of belt road= wrong it's moving right along. great video what a tool
@TheMrFishnDucks
@TheMrFishnDucks Жыл бұрын
Wonder if it will ever be fully built and how it would work then 🤔🤔
@itgamingke
@itgamingke Жыл бұрын
Kenyans love SGR and use it daily for cargo and passenger services. So far they're making profits which keeps increasing yearly. The only problem is that the train can't go upto Naivasha inland depot since it was shut down by the new president with claims that's it was a waste of money to move cargo away from the port to farther inland but it made it easier for Uganda to get their cargo faster from Kenya
@munenejoe6682
@munenejoe6682 Жыл бұрын
not true
@itgamingke
@itgamingke Жыл бұрын
@@munenejoe6682 ofc I can't speak for every single Kenyan but it's clear the majority have no problem with SGR
@livenlearn1
@livenlearn1 Жыл бұрын
If you look it up, you will find that it is not profitable. The executive order requiring use of the railway was meant to help make it profitable.
@KIM-xl6zs
@KIM-xl6zs Жыл бұрын
@@munenejoe6682 the sgr has never paused even for a day, so stop lying dummy
@waynehewett4017
@waynehewett4017 Жыл бұрын
How can they be making a profit if the railway is losing 200 million dollars a year ? Plus still have to pay back 3.3 billion dollars plus interest ? So how is that in any way making a profit ?
@oldbrain394
@oldbrain394 Жыл бұрын
Kenyans love the railway, what wrong with you guy.
@tonydulnuan7564
@tonydulnuan7564 Жыл бұрын
Stop criticizing China. It has been doing better to the world specially in Africa than the entire western countries.
@salam9025
@salam9025 Жыл бұрын
Is that a pink Himalayan salt lamp behind you? Does it work to infuse negative ion in the room?
@abheekkbose
@abheekkbose Жыл бұрын
Would be great to understand a bit more on the financials. If the SGR made a 200M loss, then how is it that the debt decreased to 3.3B? Is it possible that SGR paid back 300M and therefore made a 200M loss?
@sriarrow
@sriarrow Жыл бұрын
Oh man! I didn’t expect such comment. It’s operational loss. In addition to their loan.
@krishnanunnimadathil8142
@krishnanunnimadathil8142 Жыл бұрын
Loan repayments are treated as balance sheet items not income statement items. The interest on loans issued is recorded as an expense however. But, in government accounting, they may sometimes take cash payments for loans as part of annual expenditure itself. That’s why they often record “surpluses” and “deficits” as opposed to “profits” and “losses”. Would be worth digging further into the public documents. It may be a USD 200 million “deficit” and not a “loss”. That said, continuous “deficits” are not a good thing either; the money has to come from somewhere!
@itgamingke
@itgamingke Жыл бұрын
China and Africa(Kenya) bond is different from what the media things it is. All the major infrastructure projects done in Kenya we've had a helping hand from the Chinese in cooperation with our local companies and government organizations
@margyrowland
@margyrowland Ай бұрын
$3.6B sounds like a very efficient project.
@gingermintrose
@gingermintrose Жыл бұрын
Smaller and more agile projects! Some projects are successful, and some do not. The most important thing is to constantly assess sustainability. B&R will continue calibrating its business model, and more studies, feasibility tests, reviews, and ROI evaluations will be good in the long run.
@nimrodchokwe711
@nimrodchokwe711 Жыл бұрын
The British built the first railway from Mombasa to Uganda for free. After independence, all they had to do was to maintain and upgrade the rails like the ones in European countries!
@alexandermutune6131
@alexandermutune6131 Жыл бұрын
There is nothing they did for free.What about all the resources that were extracted from the interior & transported using the line to service the thriving British industries at the time?
@mfululizowak9899
@mfululizowak9899 Жыл бұрын
@@alexandermutune6131 were we educated enough to know what to do with those said resources? Lol
@mfululizowak9899
@mfululizowak9899 Жыл бұрын
Imagine!!! And we just FAILED. This was also supposed to be an electric train but cause corruption is the national language, we got a slower train. 🥴
@alexandermutune6131
@alexandermutune6131 Жыл бұрын
@@mfululizowak9899 The resources can stay until the owners are well educated to utilize them.
@mfululizowak9899
@mfululizowak9899 Жыл бұрын
@@alexandermutune6131 lol...the same owners who would sell their own people for tortoise shells, liquor and sweets? How do you know our ancestors, who didn't know the value of ish, didn't sell those resources for dumb stuff again?
@electrapo1184
@electrapo1184 Жыл бұрын
The cost of building the SGR in Kenya was inflated by double the cost. This is what happens when even the president is purely corrupt.
@markisto8655
@markisto8655 Жыл бұрын
I'm surprised none of the Kenyans defending the rail wants to mention that, or even the government's failure to make public the SGR contract.
@pietrojenkins6901
@pietrojenkins6901 Жыл бұрын
Total BS .
@WEIGHTLoseCoach_1
@WEIGHTLoseCoach_1 Жыл бұрын
Best video for internet good brother
@kichini275
@kichini275 Ай бұрын
The biggest issue with this line is that it's a single track. You can only get so many trains on it.
@HellenofTroy897
@HellenofTroy897 Жыл бұрын
The road to industrialization is painful. Initial outlays are expensive and take time to reap off from. Ruto's hasty decision to revert port operations fully to MSA is an indication that his vision is not about industrialization and increasing cooperation between regional countries but is really about winning the support of MSA voters. Shortsighted and Sad!
@sirkama2395
@sirkama2395 Жыл бұрын
Enemy of progress
@MKL614
@MKL614 Жыл бұрын
They always hope for bad things to happen in Africa the same way they predicted so much Doom with Corona Virus,it wasn't true
@africaglobal.
@africaglobal. Жыл бұрын
Western people . They don't want Africa to develop.
@NicksDynasty
@NicksDynasty Ай бұрын
I'm sure it has increased the value of land around stations and making it a great place to develop. Travelers can get to and from those cities at a faster and more comfortable rate
@diojan4610
@diojan4610 Ай бұрын
The government's task is to create opportunities to its people. The problem with this documentary is emphasized more on profit not on the opportunities and convenience of its population. Profit should be set aside first. This is how the WEST works.
@pleongv1
@pleongv1 Жыл бұрын
Railway is a public infrastructure which meant not to be profitable … the economic expansion and growth will indirect benefits the tax coffers of Kenya
@tinatuja
@tinatuja Жыл бұрын
SGR is doing way better now as a transportation mode than when initially launched. Businesses are picking up after Covid. It should also be noted that the initial Mombasa- Nairobi stretch has definitely proved Kenya and indeed East Africa needs the Railway system and should be implemented in stages.
@u-know-this
@u-know-this Жыл бұрын
Big question completed by who. ? The new government has just damaged almost 70% of its revenue by recongesting mombasa who will pay for the current SGR and the New construction our government decisions are horrible as they are based on emotions not financial knowledge
@unsatisfyingbasis7163
@unsatisfyingbasis7163 Жыл бұрын
@@u-know-this and you do know that the president has a PhD and is probably more learned than you so I dont think it was out of emotion.
@jefmweds
@jefmweds Жыл бұрын
@@u-know-this it's very absurd for someone like you support government intervention in free market economy. The SGR if a good option for transporters will definitely come back rather than forcing people to transport their cargo on it. This was against the free market economy concept and was doomed to fail irrespective of which government comes to power. Let me ask you why people do what they're asked not to do and don't do it if another way of persuading them is implemented? The government was wrong on the directive
@The2wanderers
@The2wanderers Жыл бұрын
@@jefmweds Free road access is a distorting subsidy, so you're not talking about a "free market." Having a road that is tax funded compete with a railroad that is expected to pay for itself is going to result in the road appearing cheaper. A mandate to use the train might have been an excessively heavy handed way of dealing with this, but if you want a truly free market comparison, you'd have to remove the fuel subsidy (which has been done now, but recently enough that it wouldn't affect usage statistics shown in the video) and set up road tolls that recover both capital and maintenance costs on the roads. As a final step, you'd want to look into externalities. If long distance road transport is a significant contributor to local congestion in Mombasa, you basically have everyone paying for trucking by wasting their time and fuel in traffic, which is another form of subsidy.
@jefmweds
@jefmweds Жыл бұрын
@@The2wanderers I'm looking at efficiency on sgr as compared with the road transport. With time transporters will move to sgr as some fie details are ironed out.
@mhairsto24
@mhairsto24 Жыл бұрын
At least they're doing something. America has no plans to upgrade our transit networks in a meaningful way.
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