China transfers control of key Belt and Road railways to three African nations

FILE PHOTO: China widens South America trade highway with Silk Road mega port
FILE PHOTO: Dragline excavators stand at the construction site of a new Chinese mega port, in Chancay, Peru August 22, 2023. REUTERS/Angela Ponce/File Photo
Source: REUTERS

China is transferring control of two major African Belt and Road railways to three African nations after years of training and observation in operating these infrastructure projects.

Chinese operators of the two Belt and Road Initiative projects in Africa handed over operations to the governments of Ethiopia, Djibouti, and Kenya.

The 752km (467 miles) Addis Ababa-Djibouti Railway, also known as the Ethiopia-Djibouti Railway, was handed over to the Ethiopia-Djibouti Railway Share Company (EDR) after six years of operation. Meanwhile, the China Road and Bridge Corporation (CRBC) transferred over 90% of the operations of the 480km Mombasa-Nairobi Standard Gauge Railway (SGR) to the Kenya Railways Corporation, with a full handover expected by 2025, the South China Morning Post reports.

The Africa Star Railway Operation Company (Afristar), a subsidiary of CRBC, has managed the SGR since 2017, according to the South China Morning Post. Kenya Railways has been gradually assuming operations since 2021. "We are going to complete taking over operations from Afristar in 2025. All operations will be fully run and operated by Kenya Railways," Philip Mainga, managing director of Kenya Railways, said in May.

Recently, it was reported that East African nations joined Kenya in a collaborative effort to secure funding for the expansion of the SGR, aiming to link Kenya with Uganda, South Sudan, Rwanda, and the Democratic Republic of the Congo. The over $5 billion China Eximbank-financed railway runs from the coastal city of Mombasa to the capital Nairobi, with an extension to Naivasha, northwest of Nairobi.

Abdi Zenabi, executive director of the EDR, lauded the $4.5 billion railway project by China Railway Engineering Corporation (CREC) and China Civil Engineering and Construction Corporation (CCECC) during its May 10 handover.

"The railway is more than just tracks and locomotives. It is a symbol of cooperation, friendship, and shared aspirations," Zenabi said. He noted that the railway, the first electrified transnational railway in East Africa, has opened new markets, attracted investments, and created job opportunities.

However, according to the report, observers mentioned that knowledge transfer remains "partial" to avoid giving away too much and potentially jeopardising future projects.

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