It has emerged that the Dar commuter train drains Sh2 million from TRL coffers daily as operational costs. PHOTO | FILE
In Summary
- Since the commuter train services started, TRL has incurred a loss of Sh668 million due to higher operational costs and minimal revenues
Dar es Salaam. When the
commuter train that operates between Ubungo and the city centre was
launched with fanfare on October 29, last year, hopes were high that it
was set to offer relief to passengers plying the route.
The train was also expected to reduce traffic jams between Ubungo and the city centre, which cost people and businesses precious time and fuel.
However, one year on, the 12-kilometre commuter train services are seen as a drain on both Tanzania Railways Limited and government coffers as Sh2 million is used every day to suppliment operational costs. This is because the TRL receives about Sh2 million as revenue from ticket revenue and spends Sh4 million.
Since the commuter train services started, TRL has incurred a loss of Sh668 million due to higher operational costs and minimal revenues, according to the Public Relations manager Midladjy Maez. Dr Harrison Mwakyembe told Parliament recently that the commuter services were launched in part to supplement TRL’s dwindling revenue because of suspension of trips to upcountry destinations.
“I’d like to tell the public and fellow MPs that the establishment of the commuter train routes in Dar es Salaam was not politically-motivated. Our aim was to provide services to the public and increase income for TRL,” Dr Mwakyembe told Parliament in July.
The commuter train, according to Dr Mwakyembe, has been contributing 50 per cent of TRL earnings. It also drains Sh2 million from its coffers for daily operational costs, according to Mr Maez. The commuter trains ferry between 4,800 and 5,000 passengers daily who pay an average of Sh400, according to Mr Maez.
“We normally get Sh2 million daily as revenue from passengers, but the running cost is Sh4 million per day,” he told in an interview recently.
“We are in a dilemma. Should we stop operating and by doing so deny passengers the key service? Should we continue incurring losses?” Mr Maez asked.
The train was also expected to reduce traffic jams between Ubungo and the city centre, which cost people and businesses precious time and fuel.
However, one year on, the 12-kilometre commuter train services are seen as a drain on both Tanzania Railways Limited and government coffers as Sh2 million is used every day to suppliment operational costs. This is because the TRL receives about Sh2 million as revenue from ticket revenue and spends Sh4 million.
Since the commuter train services started, TRL has incurred a loss of Sh668 million due to higher operational costs and minimal revenues, according to the Public Relations manager Midladjy Maez. Dr Harrison Mwakyembe told Parliament recently that the commuter services were launched in part to supplement TRL’s dwindling revenue because of suspension of trips to upcountry destinations.
“I’d like to tell the public and fellow MPs that the establishment of the commuter train routes in Dar es Salaam was not politically-motivated. Our aim was to provide services to the public and increase income for TRL,” Dr Mwakyembe told Parliament in July.
The commuter train, according to Dr Mwakyembe, has been contributing 50 per cent of TRL earnings. It also drains Sh2 million from its coffers for daily operational costs, according to Mr Maez. The commuter trains ferry between 4,800 and 5,000 passengers daily who pay an average of Sh400, according to Mr Maez.
“We normally get Sh2 million daily as revenue from passengers, but the running cost is Sh4 million per day,” he told in an interview recently.
“We are in a dilemma. Should we stop operating and by doing so deny passengers the key service? Should we continue incurring losses?” Mr Maez asked.
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