Future of Rail Transport in Uganda: Uganda Railway Corporation Outlines Key Developments and Upgrades
World Business Journal talks to Benon M. Kajuna, MD of Uganda Railway Corporation, about recent advancements in revitalising the railway system, including significant infrastructure upgrades, new asset acquisitions, and the launch of the first phase of the Standard Gauge Railway (SGR) project. The critical challenges that must be surmounted to restore the company to profitability are also addressed in the discussion.
What are the latest updates on the 10-year transformation plan?
Key developments include the rehabilitation of the Meter Gauge Railway (MGR) from Malaba to Kampala and the Mukono-Kampala line. The northern line from Tororo to Gulu is 50% complete, connecting to the Gulu Logistics Hub.
We have 4 mainline locomotives for the Malaba to Mombasa route. Infrastructure projects include rehabilitating sections from Malaba to Mukono, Kampala to Port Bell, and Kampala to Kyengera, alongside upgrading stations and fencing 20 km to Namanve. We aim to enhance water transport between Port Bell and Jinja and are pursuing a dry dock project for waggon rehabilitation on Lake Victoria.
We are currently procuring additional rolling stock, including 10 new locomotives, developing a railway transport master plan, an Enterprise Resource Planning system, automated train control, and a Railways Training School for skills development.
Has construction work started on the Standard Gauge Railway (SGR) project?
We have advanced over $83M to Yapi Merkezi for mobilisation and initial preparations for the 272 km electrified railway from Malaba to Kampala, designed for passenger speeds of 120 km/h and cargo speeds of 100 km/h.
Mobilisation will take approximately 6 months as we secure financing for the construction, estimated to cost $2.7B.
SGR will be built in phases: the first phase covers eastern Uganda from Malaba to Kampala; the second phase extends from Kampala to western Uganda, linking to DRC’s port and Rwanda through Mirama Hills; the third phase runs from Tororo to northern Uganda, connecting Gulu to South Sudan and DRC via Pakwach.
Kenya has constructed the line from the port of Mombasa to Naivasha, aiming to connect to Malaba and Uganda.
This project will transform Uganda into a regional transport hub, reducing costs and transit times while boosting investments and trade.
What are the most significant barriers to growth that URC is currently facing?
We are operating below capacity due to the damage caused by the concession, leaving us with a $409M maintenance backlog.
Our operating ratio is $2.50 spent for every $1 earned, which is unsustainable. We currently transport 250,000 tonnes annually, but need 550,000 tonnes to break even. I am optimistic about government support and hope to break even in 3–5 years if funding continues at this pace.
