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Amid the competitive race of establishing a standard gauge railway network in the region, Uganda has gained momentum by recently launching the Tororo-Kampala SGR Construction project. The launching of this project was done by the country’s president, Yoweri Museveni.
Recently, Uganda’s infrastructure development plans received a boost in its realization. This comes after the East African nation signed a $3 billion deal with Turkey’s Yapi Merkezi. This deal will involve the construction of 272 kilometers of Uganda’s Standard Gauge Railway. “The ambitious railway plans to link Kampala to Malaba at the border with Kenyan SGR and provide a link to the Uganda rail network to the port of Mombasa on the Kenyan territory,” a report stated.
“This SGR project section is under construction as part of a bigger plan to develop an extra 1,700-kilometer electric rail system. This railway will transform the transport sector and enhance the flow of goods between regions in Uganda,” the report added.
Completion Date
The construction is to commence in November 2024 and would take 48 months to complete the project. The domestic expenditure together with credit from export finance organizations will be used to finance the project in Uganda.
Significance of the Project
When finished, transport costs will drop significantly. Generally, trade will be enhanced cutting the cost of moving goods from the inland origins to the costal ports. This will greatly enhance Uganda’s economy. Moreover, according to the President of Uganda, “This upcoming SGR project is a crucial part of a long-term plan. The plan is foreseen to address the congestion that is usually experienced in Ugandan roads.”
“The anticipated speeds of this SGR project are expected to be at 100km/h for the cargo trains and 120km/h for the passenger train. Moreover, the railway will boast an impressive capacity of up to 25 million tons of cargo annually,” reports indicate.
Yapi Merkezi a Major Contractor for SGR projects in East Africa
Yapi Merkezi that has started the construction after China Harbour Engineering Company (CHEC) could not proceed financing. The latter is a player who has a plenty of experience in East Africa infrastructure industry. “The Turkish firm is also responsible in the construction of the SGR in Tanzania which stretches at 1,219 kilometers from the port of Dar es Salaam to the land locked zones,” reports indicate. “Like Uganda’s SGR, Tanzania’s SGR seeks to open up regional trade through links to Rwanda and Burundi but has direct rivalry with Kenya’s transportation network for cargo traffic from the hinterland countries.” a report added.
Out of the African countries, Kenya was the first to embark on the construction of its SGR which it finalized in the Mombasa to Nairobi and by 2019 to Naivasha. On this aspect it has enhanced the movement of freights within Kenya, faster and a more efficient link to Uganda. Kenya and Tanzania have embarked on the implementation of SGRs as part of the strategic drive to foster the EAC’s objective of the development of a regional rail system facilitating integrated commerce centers.
The Project to Promote Local Ugandan Companies
According to the project coordinator of the Uganda SGR project, Wamburi made a statement,”I shall make sure that the project’s contractors source the materials first from the local companies. In fact, companies such as Roofings and Hima Cement are ready to supply construction materials for the project.”
Similar projects in East Africa
Reports have revealed positive data on the development of the SGR network in the region. These developments in Kenya, Tanzania, and now Uganda will all show that modern rail transport is a major key towards enhancing the transport infrastructure in this region. “The new Kampala to Malaba SGR networks will not only help shift from the rail reliance on roads but also enhance the cost of doing business through efficient transport of goods,” a report indicates. “This kind of collective effort in infrastructure modernization is important in enhancement of East Africa’s comparatives in trade, especially when the region is keen on attracting more investors,” the report added.
“It is also rather remarkable how Turkey increases its presence in Africa, especially given that Yapi Merkezi operates in this continent. Today, construction companies from Turkey dominate the African market, implementing more than $ 85 billion worth of contracts by 2023,” a report read.
Challenges Facing the Project
“Initially, this Standard Gauge railway project was intended to be an East African project.” “However, it faced quite a number of challenges mainly financing problems. Kenya did its section of the East African SGR project but was unable to connect it to Uganda, Rwanda, and Sudan,” the report added.
Project factsheet
Constructor/Contractor: Yapi Merkezi
Start date: November 2024.
Completion date: 2028.
Construction cost: $3 billion.
Location: Kampala to Malaba.
Cargo capacity: 25 million tons
Speed: 100km/h cargo trains, 120km/h passenger trains |
