China agrees to build East African rail line

Chinese and East African leaders agreed to build a railway from Mombasa to Nairobi and on to neighboring African states, Reuters reported. China Road and Bridge Corporation has been appointed to construct the initial Kenyan leg of the new line. The new railway will cut freight costs to US$0.08 US a metric ton per km from US$0.20 now. Officials previously put the price for the railway from Mombasa to Kenya’s western border with Uganda at US$5 billion, including financing costs. The deal is part of a regional effort to cut the high costs of trade between east African nations.