Uganda is making significant strides in its effort to enhance trade competitiveness and reduce transport costs on the Northern Corridor through a comprehensive overhaul of its meter gauge railway. The Spanish construction company Imathia Construction has completed the replacement of steel sleepers with concrete beams on the Namanve-Kampala section of the line. This marks a crucial milestone in the project, with the expectation that the section will be handed over this month. The initiative, led by Uganda Railways Corporation (URC), aims to address the inefficiencies in rail transport, with the Malaba-Namanve meter gauge track reaching fair condition. However, concerns persist among importers, exporters, and shippers due to a shortage of rolling stock, leading to 90 percent of traffic on the Northern Corridor being carried by road. The $233.2 million funding from the African Development Bank and $100.7 million from the African Development Fund will support the construction and purchase of rolling stock, including locomotives, wagons, and coaches.
As part of the project, Uganda plans to acquire three thousand horsepower locomotives by 2026 and increase the number of government-owned wagon ferries from two to four. The initiative aligns with URC's goal of shifting cargo transportation from road to rail, aiming to move six million tonnes annually. In addition to rail infrastructure improvements, Uganda is reviving the Tororo-Gulu City route, currently under construction, connecting to the Gulu Logistics Hub. The hub, strategically located for markets in Congo and South Sudan, is set to be rail-linked and completed in March 2022.