Mumias Sugar Company (MSC) has assured dissatisfied cane transporters that their contracts with the company is valid until expiry of agreement date.
The promise comes in the wake of a string of standoffs between transporters and the management over a month long deadlock sparked by a decision by the company to advertise for fresh bidders.
Acting Managing Director Coutts Otolo has, however, said that fresh bidding process advertised in local dailies recently would still hold water.
“We have resolved to streamline affairs by honouring all ongoing contracts but this does not mean that we have thrown out the fresh bids we advertised recently... we shall synchronise things properly,” he said yesterday.
A section of cane transporters have intermittently disrupted transportation services in the recent past over fear of losing their transport contract and this has consequently impacted adversely on the miller’s crushing capacity.
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Otolo said the company has settled on a two prong strategy that includes the rationalisation of supply chain distribution services that include transport and reduction of production costs.