<p>LAPSSET Standard Gauge Railways (SGR) is the fourth key component of the corridor. It will start from Lamu to lsiolo and then branches at lsiolo to South Sudan and lsiolo to Ethiopia while another section will run from Nairobi to lsiolo, and the latter would bridge LAPSSET corridor and Northern corridor. The costs for construction of LAPSSET Corridor Railway and procurement of rolling stocks are estimated at approximately US$ 7,100 million comprising of  civil works US$ 3,480 million, tracks US$ 1,200 million, rolling stock US$ 1,220 million, signal and telecom US$ 520 million, buildings and other infrastructure USD$ 300 million.. The railway has overall ElRR of 15.6% for all sections combined and is above the threshold of 12% thus feasible.</p>
<p>Feasibility study and preliminary engineering designs of LAPSSET Standard Gauge Railway were completed. So far, bilateral agreements were signed between Kenya and Ethiopia and South Sudan in respect to this railway development. Ethiopia is currently undertaking the development of its side Moyale-Addis Ababa in three different stages.</p>
<ul>
<li>Construction of Addis Ababa-Modjo section of about 120 km part of the Addis-Djibouti railway is complete</li>
<li>Pre-Feasibility study has been completed for Modjo-Hawassa-Moyale section, and funding being sought to undertake feasibility and preliminary design. </li>
</ul>