The Old

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25 SEPTEMBER 2008 Presented by

Kevin Whiteway

Managing Director

Rift Valley Railways

The Kenyan and Ugandan Railway Network

Rail Profile – Mombasa to Kampala

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Timboroa – 2844m (9352 Ft)

Concession Details

Total length of rail network – Km’s Part of Network to Concessioned KRC

2,210 1,920

URC

431 241

Freight volumes moved have been in decline since 2003 Number of - Wagons - Mainline Locomotives Other Locomotives - Employees

2,600 3,800 33 53 580

THE LAST 20 MONTHS

• Poor Business Planning on entry • Under-estimated condition of track and rolling stock • Poor administrative planning and procedures • Insufficient working operational cash • Capital programme not sufficiently targeted •

RESULT - UNDER ACHIEVED

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Where to

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Challenges

– Management and organizational structure review required – Long lead times to buy rail, spares and rolling stock – Meeting market expectations in short term – Track unstable and poorly maintained – Locomotive reliability poor – Wagon defects and “fitness for purpose” – Accidents and derailments – Sabotage and vandalism of rail infrastructure – Technical skills of staff in all Departments – Upgrade of workshops

LIGHT AT THE END OF THE TUNNEL

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5 Year Investment Plan

Track and Infrastructure US$,000 16,598 24,958 20,525 9,258 8,824 Wagons Locomotives 20,100 16,200 16,200 1,000 1,000 15,200 17,100 4,800 13,800 IT 1,500 1,500 250 250 250

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INNOVATIONS

• Better forward planning • Better use and turn around of assets • Introduction of longer trains • Better use of train paths • Keeping operational and safety advices current • Health, Safety and Environment Programmes • Skills upgrading of all personnel • Rosters that reflect the needs of the business • Improved incident response 25/04/2020 Rift Valley Railways 13

Infrastructure

– Culverts in Uganda – Bridge inspections and maintenance – Rail-over-road bridges – Floods and wash-away – Level crossings problems and signage – Rail Maintenance Plant and Equipment – Tunnels – Sleeper press and production 25/04/2020 Rift Valley Railways 14

•

PLANNED MAINTENANCE AND UPKEEP OF EXISTING ASSETS

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HELP REQUIRED

• • • • • • • •

Comply with agreed weight limitations Simplification of customs and revenue procedures Simplification of transit cargo procedures Pre advice that transit cargo is to travel on rail Cross border issues resolved - It is one railway Stopping the theft along the rail line Bureaucracy in all areas of enterprise to be streamlined Theft and encroachment on rail property

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OUR COMMITMENT

• • • • • • •

RELIABILITY MORE AND LONGER TRAINS TO FULLY UTILISE AVAILABLE TRAIN PATHS LESS BREAKDOWNS LESS DERAILMENTS REALISTIC PRICING SECURITY OF CARGO GOAL WITHIN 5 YEARS 40% OF IMPORT CONTAINERS

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We have the resources

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