Trade on tracks: Rail freight boosting trade, competitiveness

From Kenya’s flower farms to South Africa’s mineral heartlands, Africa’s rail freight sector is undergoing a quiet revolution powered by cold chain innovation, bold infrastructure investments, and a new generation of thinkers eager to reshape the continent’s logistics landscape. As exporters, policymakers, and financiers collaborate to overcome bottlenecks and modernise railways, the stakes are high: fresher produce, more competitive exports, and the promise of sustainable economic growth.

Moses Ndegwa, Supply Chain Manager – Flowers at AAA Growers, offered a firsthand perspective on the logistical realities and transformative potential of rail for the African continent and specifically for Kenya’s flower industry during the recently concluded Flower Logistics Africa 2025 in Nairobi.

AAA Growers operates four farms across Kenya, with two dedicated to flowers, two to vegetables. Their largest flower is in Rumuruti, about a four to five-hour drive from Nairobi. The distance and time-sensitive nature of flower exports have always posed a challenge.

“You can imagine transporting flowers from Rumuruti to Nairobi and Mombasa for sea freight,” Ndegwa explained. “After preparing flowers for two or three days, they are transported to Nairobi, where they may stay for another day or two for documentation, before being trucked to Mombasa, a journey that can take up to two days. This extended process can really affect the quality of the flowers.”

AAA Growers has experimented with sea freight. Yet, the complexity and duration of the traditional road route to Nairobi, documentation delays, and the road to Mombasa have highlighted the need for more efficient alternatives. The introduction of the Naivasha Inland Container Depot (ICD) and the Standard Gauge Railway (SGR) is now changing the game.

“With the Naivasha ICD, we can load flowers directly onto refrigerated rail containers. From Naivasha, it’s about two hours to prepare and dock the flowers, then they’re on their way to Mombasa the same day,” said Ndegwa. This shift not only streamlines the process but also reduces reliance on road transport, helping preserve the quality and freshness of Kenya’s exports.

“With the Naivasha ICD, we can load flowers directly onto refrigerated rail containers. From Naivasha, it’s about two hours to prepare and dock the flowers, then they’re on their way to Mombasa the same day.”
Moses Ndegwa, AAA Growers

On March 19, 2025, Kenya Railways Corporation (KRC) introduced a fleet of 16 refrigerated (reefer) wagons that can carry up to 32 twenty-foot equivalent (TEU) reefer containers from Naivasha and Nairobi Inland Container Depots to the Port of Mombasa via the Standard Gauge Railway (SGR).

Douglas Waga, Senior Operations Officer at KRC, who is also stationed in Naivasha ICD, emphasises the reliability and speed the railway now offers for reefer containers.

“When you bring your reefer container to Nairobi, we guarantee a transit time to Mombasa of just nine hours. From Naivasha’s Inland Container Depot (ICD), the journey to Mombasa takes a maximum of 10 to 11 hours,” Waga notes. This is a marked improvement over road transport, which can take up to two days for the same route.

Waga highlights the schedule integrity that underpins Kenya Railways’ operations: “Once a train is slotted, it departs from Nairobi or Naivasha and arrives in Mombasa at the scheduled time. Delays are rare, and this consistency is something we guarantee.”

Upon arrival at Nairobi or Naivasha, reefer containers are offloaded from trucks and connected to one of the dedicated plug-in points – 20 in Nairobi and 320 in Naivasha – ensuring uninterrupted refrigeration during transit and handling.

While running a dedicated express reefer train is not always feasible due to the need for block trains, Waga explains that reefers are efficiently managed alongside ordinary containers.

“At the final phase of loading, we prioritise the reefer containers. As soon as a reefer is loaded, it receives immediate clearance to depart for Mombasa. Upon arrival, it is the first to be offloaded and, if a ship is ready, transferred directly onboard. If not, it is placed on plug-in points at the port to maintain the cold chain.”

Waga also points to recent innovations that further remove the logistical headaches previously associated with manually attaching and detaching generators at each terminal.

“With these self-powered reefer wagons, the hassle of clipping and unclipping generator sets is eliminated. Once the wagon arrives, we can offload and proceed with other operations seamlessly,” he says.

These advancements, Waga asserts, are not just technical improvements but strategic steps towards making rail the preferred mode for perishable exports. The reduced transit times, operational reliability, and enhanced cold chain integrity offer compelling incentives for exporters seeking to move fresh produce efficiently from Kenya’s hinterland to global markets via the Port of Mombasa.

“From Nairobi, we guarantee a transit time to Mombasa of just nine hours. From Naivasha ICD, the journey to Mombasa takes a maximum of 10 to 11 hours.”
Douglas Waga, Kenya Railways Corporation

While operational improvements are making a difference, Racheal Mugure, General Manager at Tradewinds Logistics, points out that policy and infrastructure challenges remain for exporters.

Mugure emphasises that policy reforms and targeted incentives are critical, not just for logistics providers but also for the end-users, growers, and exporters. “Our shared goal is to make African roses more competitive and affordable in the global market,” she notes.

Lowering the cost of transporting flowers from farms to export hubs, whether by rail to the port of Mombasa or by air via Jomo Kenyatta International Airport, directly supports this aim. Reducing these costs enables growers to offer more attractive prices and helps overcome the perception that sea freight is less reliable for maintaining flower quality upon arrival.

Streamlining and centralising documentation requirements would significantly cut costs and administrative burdens. “If a single set of documents could serve the entire journey from farm to destination, it would be a game-changer,” Mugure asserts.

While government investment in infrastructure, roads, ICDs, and plug-in points for refrigerated containers is essential, Mugure stresses the importance of public-private partnerships. “Making the sector attractive for private investors will accelerate the development of logistics infrastructure and services, ultimately benefiting exporters and making African products more competitive globally,” she says.

Mugure acknowledges that while costs have come down compared to five or six years ago, rail freight is not yet as cost-effective as it could be. “We’ve made progress, but inefficiencies remain, especially at ICDs, where delays can lead to extra fees for truck detention and limited plug-in points for refrigerated containers,” she observes. For example, a reefer container may arrive at the ICD and have to wait for the next train, incurring additional charges and risking product quality due to insufficient cold chain infrastructure.

Improving efficiency at ICDs and across the logistics chain is paramount. Mugure calls for ongoing collaboration between the government, private sector players, and growers to address these challenges. “By working together, we can streamline processes, reduce costs, and ensure that African flowers, especially Kenyan roses, continue to thrive in global markets,” she concludes.

Mugure’s insights reflect a broader movement across Africa to modernise logistics, reduce costs, and enhance sustainability. With ongoing investments in cold chain infrastructure, digital customs systems, and innovative rail solutions, the continent is poised to further cement its role as a global powerhouse in cut flower exports.

“We’ve made progress, but inefficiencies remain, especially at ICDs, where delays can lead to extra fees for truck detention and limited plug-in points for refrigerated containers.”
Racheal Mugure, Tradewinds Logistics

Looking at the bigger picture of infrastructure investment, Gabriel Mbiti, Associate and Portfolio Manager at the Africa Finance Corporation (AFC), highlights the importance of strategic, sector-driven rail projects across the continent.

Headquartered in Lagos, Nigeria, AFC is a pan-African multilateral development institution established in 2007 by sovereign African states that provides debt and equity finance across five sectors, including transport and logistics. AFC is the lead project developer of the Lobito Corridor and has committed an initial $500 million to the project, with total investment expected to exceed $1 billion. The Lobito Corridor, also known as the Zambia-Lobito Rail Project, is a rail infrastructure initiative designed to connect Zambia and the Democratic Republic of Congo (DRC) to the Port of Lobito on Angola’s Atlantic coast, linking Zambia's northwest mining region to the southern DRC and Angola.

"We're not just building roads and railways; we're creating economic corridors," Mbiti explains. His vision extends beyond traditional infrastructure development, focusing on targeted investments that directly support critical industries like flower exports.

The challenge isn't just about constructing infrastructure, but designing it intelligently. AFC's approach involves deep government engagement and flexible financing models that transform conceptual plans into tangible projects. "We've worked with multiple governments to identify specific routes and segments that require intervention," Mbiti notes, highlighting their nuanced understanding of regional economic needs.

Particularly in Kenya, AFC is eyeing transformative projects like the Nakuru and Mombasa highways. These aren't just transportation routes, but economic lifelines that could revolutionise sectors like horticulture. "We continue to look at economies like Kenya as critical partners," Mbiti emphasises, underscoring their commitment to sustainable development.

The real innovation lies in their collaborative approach. Instead of top-down implementation, they're advocating for industries to drive policy changes. "The push has to start from key industries," Mbiti argues, suggesting that sectors like flower exports can be catalysts for broader infrastructural transformation.

What makes AFC's strategy compelling is its recognition that infrastructure is more than concrete and steel—it's about creating ecosystems that enable economic growth. By focusing on concession models and public-private partnerships, they're reimagining how infrastructure can be developed and financed.

"We're not just building roads and railways; we're creating economic corridors. We've worked with multiple governments to identify specific routes and segments that require intervention."
Gabriel Mbiti, Africa Finance Corporation

A key part of modernising Africa’s railways, according to Mehdi Dib, Deputy Executive at EPE Rail Electr SPA and Founder of Open Source Railway, lies in electrification and knowledge-sharing initiatives.

EPE Rail Electr SPA is an Algerian state-owned company specialising in the electrification of railway, metro, and tramway systems, including the installation and maintenance of overhead catenary lines and substations, as well as broader electrical infrastructure projects.

“At EPE Rail Electr SPA, we are deeply involved in electrification projects that aim to improve efficiency, reduce emissions, and support sustainable economic development,” Dib explains.

Yet, the journey toward widespread electrification is not without significant hurdles. Dib points out that the cost of electrifying long-distance lines in Algeria remains high, especially when compared to projects in Asia. The technical challenges are compounded by the harsh Sahara environment and a shortage of locally manufactured, high-integrity components, making these projects both technically demanding and capital-intensive.

“There’s also a pressing need for local expertise and harmonised standards to ensure long-term viability,” he adds.

Algeria is investing heavily in its rail infrastructure, with plans to expand the network to 15,000 kilometres by 2035 and major electrification contracts underway.

Recent projects include the electrification of key freight corridors, such as the Annaba-Djebel Onk railway, which is critical for boosting mineral exports and reducing transport bottlenecks.

To accelerate progress, EPE Rail Electr SPA has launched the Open Source Railway initiative, which champions open access to designs, tools, and technical knowledge. “By fostering collaboration and sharing across borders, we hope to accelerate digital and electrification progress in African rail networks and reduce costs through smarter, community-driven solutions,” he says.

“By fostering collaboration and sharing across borders, we hope to accelerate digital and electrification progress in African rail networks and reduce costs through smarter, community-driven solutions.”
Mehdi Dib, EPE Rail Electr SPA

As Africa’s economies strive for greater integration and efficiency, the continent’s rail freight sector is emerging as a critical lever for growth. Nowhere is this more evident than in South Africa, where the rail network is among the continent’s most developed-but, as industry insiders note, still brimming with untapped potential.

“South Africa’s freight rail industry is big, but we can do better,” says Nomathamsanqa G. Msomi, a Mechanical Engineer and Committee Member at the South African Society for Railway Engineering (SASRE). “We export a lot, especially minerals, but there’s room to balance imports and exports more strategically. If we maximise our mineral production and value addition, it will be easier for Africa to fully develop.”

Msomi, who is passionate about rail’s role in Africa’s future, believes the sector’s greatest opportunity and its most overlooked asset is the involvement of young people. “The rail industry has long been dominated by people who have seen only the old models of freight,” she explains.

“But as time goes by, things must change with the new generation. The involvement of youth will bring fresh ideas and new energy into rail. Gen Z, as we call them in South Africa, are the perfect generation to lead railway innovation in the coming years.”

While Kenya’s new rail projects have made headlines for moving perishables like flowers, South Africa’s railways remain closely tied to mining. “Mining is like a sister sector to railways, they work hand in hand,” Msomi says. “The progress of mining depends on efficient rail, and vice versa.”

But the sector is not standing still. Recent months have seen a push to attract private investment into South Africa’s railways. “There’s a big effort to bring in private partnerships,” Msomi explains.

“The private sector has its own way of doing things, and by working together with public entities, we can create a rail system that benefits everyone-from operators to the general public.”

“Mining is like a sister sector to railways, they work hand in hand. The progress of mining depends on efficient rail, and vice versa.”
Nomathamsanqa G. Msomi, South African Society for Railway Engineering

Bringing an entrepreneurial perspective to the sector, Willem Gous, CEO of The Human Entrepreneur, argues that fostering innovation and adaptability is essential for the future of African rail freight.

“Entrepreneurial thinking isn't just for startups. It's a critical life and work skill,” Gous explains. “It enables people, teams, and businesses to navigate the unknown, adapt quickly, and create new possibilities.”

He points out that the rail industry, in particular, faces a unique set of challenges. “Technology disruption, global instability, and local economic uncertainty in most countries mean that doing what they have done in the past 50, 25, or even the last 5 years will not address the coming disruption because it will most probably come from a place they did not expect,” Gous says. He stresses that the key to future-proofing rail freight lies in embedding innovation and opportunity-seeking at every level of the organisation. “It is about getting staff, teams, and whole organisations to think and be resourceful like entrepreneurs and make innovation and opportunity-seeking at all levels part of your business's DNA.”

Gous advocates for a shift in mindset within both public and private rail organisations, emphasising adaptability, resilience, creativity, resourcefulness, and a strong internal locus of control. By fostering these entrepreneurial qualities, he believes the rail freight sector can unlock new growth opportunities and become more agile in the face of uncertainty.

As the continent’s rail networks expand and modernise, the ripple effects reach far beyond the tracks-reshaping economies, empowering communities, and redefining Africa’s place in global trade. The journey of African rail freight is not just about moving goods faster; it’s about unlocking potential, bridging divides, and laying the groundwork for a more connected and prosperous future.