After several years of delays for various reasons, Uganda officially commenced the long-anticipated construction of the 272-kilometer Standard Gauge Railway, a modern railway link connecting Kampala to Malaba at the border with Kenya.
Valued at 10 trillion shillings, the project will be executed in phases.
Upon completion, President Yoweri Kaguta Museveni stated that the modern network will connect to Kenya’s port of Mombasa, thereby enhancing regional trade connectivity.
He emphasized that this railway will significantly lower transportation costs, facilitating the movement of goods from inland areas to coastal ports.
This improvement is expected to enhance Uganda’s trade capabilities and stimulate overall economic growth.
The construction is carried out by Turkey’s Yapı Merkezi, with work set to begin in November 2024 and end with an estimated duration of 48 months. Funding for the project will come from domestic resources and credit from export finance institutions.
The broader vision includes establishing a 1,700-kilometer electric railway system throughout Uganda, which is anticipated to transform the transport sector and optimize the movement of goods across the region, marking a significant advancement for Uganda’s economy.
While flagging off the project, the President noted that the SGR will also reduce travel time from the Port of Mombasa to Kampala to just 24 hours or less, compared to the current 14 days required by the metre-gauge railway.
The cargo train will have a capacity of 1,000 tonnes and will operate at a speed of 100 kilometers per hour, while the passenger train will reach speeds of 120 kilometers per hour.
Museveni also mentioned that the government is exploring the construction of airports to further accelerate economic growth and promote tourism.
In a post on his X account formerly twitter, he remarked, “Our transport system is irrational. Roads are overcrowded with cars and cargo. This leads to slow movement, increased traffic, and damaged roads. To solve this, cargo must move to railways and waterways, while petroleum products will be transported through pipelines”.
He stressed that the government is already working on other investment and business cost-pushers such as electricity.
“Once we have cheap transport, cheap electricity, our labour is still not expensive, all will be well, as we deal with the issue of cheaper capital,” the President noted.
President Museveni underscored the SGR’s critical role in Uganda’s long-term development strategy,by tackling logistical issues, the project aims to enhance Uganda’s competitiveness in regional trade.
The Minister of Works and Transport, Edward Katumba Wamala, announced that the Standard Gauge Railway (SGR) project is designed to enhance the country’s connectivity to the Indian Ocean coast. He noted that the SGR railway is expected to cut transportation costs by 50%, reducing the expense of moving a cargo container from Mombasa Port to Kampala from the current range of $3,200 to $3,500 down to approximately $1,600 to $1,700.
After the completion of the Malaba-Kampala segment, the SGR project will extend towards the South Sudan border via the Northern Route, as well as the Western Route, the Democratic Republic of Congo, Rwanda, and Burundi. The entire SGR network is projected to span 1,700 kilometers.
This new railway system is anticipated to ease the persistent congestion on Uganda’s roads. With expected speeds of 100 km/h for cargo trains and 120 km/h for passenger trains, the SGR will provide efficient and dependable transportation.
Its capacity to manage up to 25 million tons of cargo annually highlights its potential for significant impact.
Yapı Merkezi, a prominent contractor in East Africa, has taken over the project following the withdrawal of China Harbour Engineering Company.
The Turkish firm is also spearheaded the construction of Tanzania’s SGR, covering 1,219 kilometers from Dar es Salaam to the landlocked regions.
Similar to Uganda’s SGR, Tanzania’s railway aims to bolster regional trade by connecting with Rwanda and Burundi.
The competition between Kenya and Tanzania’s rail networks for cargo traffic from inland countries remains fierce.
Kenya’s SGR, which was completed between Mombasa and Naivasha in 2019, has already improved freight movement within the country. Uganda’s railway is set to further strengthen this network, promoting regional integration.
SGR Uganda Project Coordinator Perez Wamburu emphasized the intention to source materials locally, which will benefit Ugandan businesses. Companies such as Roofings and Hima Cement are ready to participate in this initiative.
The advancements in the Standard Gauge Railway (SGR) across Uganda, Kenya, and Tanzania highlight East Africa’s dedication to upgrading its transportation infrastructure.
According to reports, these initiatives are expected to transition reliance from roadways to railways, thereby lowering expenses and improving operational efficiency for enterprises. This unified endeavor enhances the region’s appeal to international investors.