The architects of Brazil's railway turnaround will bring cutting-edge technology to RVRI's three-point rehabilitation program for the national railways of Kenya and Uganda
Rift Valley Railways Investments (Pty) Ltd (RVRI), the operator of the national railways of Kenya and Uganda, announced today that it has signed a management and technical services agreement with leading global rail group América Latina Logística (ALL).
Under the terms of the agreement, ALL will provide key support to RVRI’s five-year, three-point rehabilitation and investment program designed to deliver long-term improvements in the safety and efficiency of rail operations across Kenya and Uganda. The first 24-month phase of the program began in November 2010.
“I can think of no better partner with whom to embark on this important and ambitious program than América Latina Logística,” said Brown Ondego, Executive Chairman at RVRI. “We chose ALL because they are leading rail operators who have proven their mettle in turnaround scenarios, including the much-studied privatization of Brazil’s national railway.”
Based in Brazil, América Latina Logística is the largest independent company of its kind in Latin America, where it operates railways and highways serving clients across multiple countries.
Under the terms of the agreement, ALL will provide RVRI with key management and operational staff and will oversee the transfer of its proven technologies.
“Critically, this agreement will see ALL provide us with access to proprietary technologies developed by ALL, including proven rail management software systems,” noted Ondego. “Moreover, this agreement is structured so that ALL’s compensation is directly linked to specific operational and financial goals at RVRI. We are bringing in the best emerging-markets rail operators to Kenya and Uganda, where we look forward to a repeat of the successes they have accumulated in the past decade since Brazil privatized its rail sector.”
Under the three-point rehabilitation program, RVRI will begin tackling the problem of derailments by replacing worn-out rails in key areas, Ondego noted, saying RVRI is finalizing its order for new rails with global suppliers.
ALL will also help RVRI kick-start a comprehensive program to address back-due maintenance on locomotives to improve reliability and enhance hauling capacity. The third plank of the rehabilitation program will substantial investment in information technology (IT) systems throughout RVRI with longer-term gains in mind.
ALL has already proven a trustworthy partner for RVRI, having worked with the company to develop the five-year investment and rehabilitation plan. The group’s first assignment will be the recruitment of key RVRI staff to enhance the existing management team.
“We made a promise to the citizens of Kenya and Uganda when we set about this process this past summer. This important partnership with ALL is the first concrete step toward re-building the national railway our clients truly deserve,” concluded Ondego.
For more information, please contact:
Brown Ondego, Executive Chairman
RVR Investments (Pty) Ltd
P.O. Box 62502
Tel: +254 (0) 20 20 444 76 - 9
Rachel Kariuki, Consultant
D68, Norfolk Towers, Kijabe Street
Tel: +254 (0) 20 239 6899
Mobile: +254 (0) 721 668660