How American trains opened up their economy

[vc_row][vc_column width=”2/3″][vc_column_text]A large two engined train was crossing America. After they had gone some distance one of the engines broke down. “No problem,” the engineer thought, and carried on at half power. Farther on down the line, the second engine broke down, and the train slowed to a dead stop. The engineer announced:
“Ladies and gentlemen, I have some good news and some bad news. The bad news is that both engines have failed, and we will be stuck here for some time. The good news is that you decided to take the train and not fly.”

I spent a lovely summer in the village of Pewaukee, Wisconsin in the United States, which has a population of 8,236. It is part of the bigger city of Pewaukee that itself has a total population of 13,195 as at the last census in 2010. Tucked away in a corn and soya bean growing topography in central Wisconsin, the nearest large city is Milwaukee which lies about 17 miles East and Chicago which is a fast ninety minute drive to the south. The central focal point of the village is Lake Pewaukee which is about the size of our own Lake Elementaita and is surrounded by million dollar homes. The lake therefore attracts residents to its shores during the weekend and the local authorities have ensured a well maintained pier exists for the public to walk along, bring their chairs and sit, swim and generally enjoy free safe and secure access to a public asset. There are also clean public toilets and changing facilities and I once found a man in a waterproof overalls waist deep in the water cleaning out the waterfront area near the pier. Pewaukee is fairly safe and front doors are often left unlocked and the local police’s idea of excitement is catching a wayward driver doing 35 miles per hour in a 25 mile per hour zone. Enough said. The serenity is, however, often interrupted by the ear splitting warning horn of cargo trains that often traverse through the village as the railways tracks are part of the wider interstate web of railway track that opened up the United States to progress, new population settlements and vibrant trade in the 19th century.

On one lazy, languorous afternoon we sat by the lake and watched a cargo train trundle past. It took all of five minutes. But five minutes is 300 seconds of a long, rumbling iron snake carrying containers arranged in a double stack on wagons. So we did some quick back of a grease stained serviette calculations. Having lost count after about 30 wagons (the relentless heat and humidity does wear one down when conducting a mind numbing activity like counting train wagons) we figured that the train was easily carrying 200 containers. Assuming that a Kenyan truck on the nail biting treacherous Mombasa to Nairobi journey carries one 40-foot container, this particular train we were observing could easily eliminate 200 trucks from the road, just like that. It goes without saying that 200 trucks off Mombasa road would also mean far less damage to the road and, heaven be praised, less traffic on that critical East African artery. But surely I’m exhibiting bouts of insane fantasy so let me get back to reality.

The railroad system in the United States can be traced to the dawn of the 19th century and was primarily built to haul cargo and later, as more railway lines were built on the back of a rapidly developing financial system in Wall Street that provided funding options, passenger trains emerged. The railroad system thus opened up significant trade opportunities for manufacturers of goods as they could find and reach new markets in a cost effective manner. Towns soon started popping up along the railway routes as the trains needed skilled craftsmen to repair the steam locomotives which developed difficulties along the journey. It is also noteworthy that by the mid 19th Century, over 80% of farms in the Corn Belt (from Ohio to Iowa states) were within eight kilometres of a railway. Access to markets had led to the creation of many large scale farming communities.

Like any industry, the railways in the United States have gone through great highs and spectacular lows. Competition from trucks did affect the railway in the mid 20th century particularly with the rapidly developing interstate highway system. However deregulation of much of the industry in the early seventies removed the stumbling blocks that had made it economically unviable thus making the American freight railway system one of the best in the world.

Which brings me to our Chinese driven standard gauge (SGR) railway that is currently under expedited construction. I did a little research and was pleased to see that actually I wasn’t exhibiting bouts of insane fantasy. A typical freight train on Kenya’s SGR, once complete, will consist of 54 double stack flat wagons and measure 880 metres long. 54 double stack wagons converts to 108 containers. Poof! 108 trucks gone just like that off our roads, assuming of course that the wagon is carrying two 40 foot containers rather than 20 foot ones.

It bears some reflection as to what role the SGR can play in the reversal of the importation pressures placed on the shilling. Since our oil will have its own pipeline to take it to the port when it is eventually extracted, our higher capacity trains should not return to the Mombasa port empty. As American history shows, the railroads were a core component of the growth of the economic powerhouse as they were used to crisscross raw material and finished goods to domestic markets. What impact will having the faster delivery mechanism called SGR have on future production of agricultural and finished product in Kenya? I want to believe that this is being given careful consideration within the facilitative roles of Ministries of Agriculture as well as Industrialization. Otherwise both these engines of facilitation will have catastrophically failed.

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Twitter: @carolmusyoka [/vc_column_text][/vc_column][vc_column width=”1/3″][/vc_column][/vc_row]

Young Entrepreneurs That Walk The Talk

Entrepreneurship is the last refuge of the trouble making individual. ~ Natalie Clifford Barney

Ted* came to work in my team as an intern in early 2007. Back in those days, working in a financial institution such as Barclays was the alpha and omega of a professional career. He was a stroppy 22 year old, with hair that was at least 3 inches too long and shirts whose cuffs that were at least 3 inches too short of the wrist line. He was a breath of fresh air in an environment of monumental performance pressure underpinned by a staid, insipid office culture. About a month before the first anniversary of his employment, as he had successfully transitioned into a full time job, he came to talk to me about taking a few months off to tour the United States.

“What?” was my incredulous reply. “Yeah, I want to just go around the States, maybe I’ll go to Mexico as well. I just want to figure stuff out,” he said nonchalantly. “But what about your career, I mean, you’ll have this inexplicable black hole in your CV which can’t be addressed with the words ‘backpacked through the United States for the sake of it’ as a line item,” I whined. It didn’t matter. Ted left for the United States, and threw in a couple of months backpacking through Europe as well. When he got back, he decided to start up a business doing websites for companies, as he was now crystal clear that he never wanted to work for anyone again.

Last week, I spent a morning in the offices of Kevin*, a twenty six year old entrepreneur whose business it is to collect electronic data from the online community, make sense of it and then help businesses make strategic decisions by distilling the information into language that decision makers can understand. Kevin has travelled around the world in the last two years providing insights at global conferences as a leading voice on African social media tactics and tips.

For two straight hours I sat with Kevin and two of his team members, getting completely blown away by the quality of data that they are able to collate using people’s Instagram, Facebook and Twitter feeds as sources of what would look like rubbish data to the untrained eye, but is actually valuable information on the experience of products and services by Kenyan consumers. Kevin only has one permanent employee in his office. The rest of his team work on contract from wherever in Kenya that they can link up to a fast internet connection. His clients are multinationals and top tier local corporates who are now starting to understand the benefits of getting unsolicited real time customer experiences to improve on their product offerings.

In a classic serendipitous twist, Kevin’s landlord is Ted, who has now become the consummate entrepreneur. At twenty nine years old, Ted now has 26 employees providing web design, branding and social media marketing solutions to multinational and local organizations in the banking, FMCG and not for profit sectors. I walked through Ted’s offices, where young fellows with 5 inches of Afro, cuff less shirts, loud blaring music and a completely relaxed, colorful environment created extraordinary client solutions on large Mac computers. It turns out that Kevin needed space to set up his business, and Ted gave him a corner desk and unfettered access. “It’s all about how we work together, Kevin thinks differently and thinks big, as a result he has helped us on some of our work and we’ve done some projects together,” Ted told me later. In his playbook, having different people share his rented office space provides opportunity for getting different perspectives on how to do business. Paul is another twenty something entrepreneur sharing Ted’s space. “We liked his vibe and he liked ours so we gave him space as well,” Ted says of Paul. There is a refreshing openness in the way Ted operates with his sub-tenants and a strong culture of leverage from synergistic relationships within the workspace. His big break in providing customized Facebook pages for clients came through a famous Kenyan musician who had come to see his previous music industry production tenant. Ted and his team were trying out their new product and offered it to the musician who had nothing to lose. The marketing manager of a large FMCG multinational saw the page, loved it and commissioned Ted’s company to do one for them. The rest as they say is history as their highly visible work sold itself off its virtual platform.

There are many Ted’s and Kevin’s in Kenya. They have chosen to buck the trend that our education system has tried to force down our collective throats which trend says that cramming, passing exams, going to university and looking for a job is the ultimate route to Canaan. These young men, and the people that they work with are making a big difference in the way that their corporate clients are doing business and understanding a client demographic that is both fluid and fickle. They are providing a service on their own terms, not constrained by the astoundingly boring confines of office environments that stifle creativity.

For every Chicken-gate, Angloleasing-gate and Maize-gate tenderpreneur we have in Kenya, there are at least ten thousand young people who want to make an honest living doing what they are madly passionate about. They fight a system that has conditioned our society into thinking it’s all about passing a standard eight sieve into a smaller form four sieve into an even smaller university sieve that spits out graduates expecting to be absorbed into a small workforce. The chaff that remains at the top of the sieves is browbeaten into defeatism and a self-fulfilling prophecy of doom. I’m glad that Ted bucked the trend and walked out of employment despite my pathetic exhortations against his mad ideas. 26 employees are happier for it.

*Not their real names
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Twitter: @carolmusyoka