Uganda Takes Major Step Forward in Railway Development

In a significant move to enhance regional trade and transportation, Uganda has signed a contract with Turkish construction company Yapi Merkezi for the construction of a 272-kilometre railway section. This project forms part of Uganda’s ambitious plan to establish a 1,700-kilometre Standard Gauge Railway (SGR) line, aimed at bolstering the country’s economic connectivity with its neighbors and beyond.

Photo credit: allAfrica.com

Perez Wamburu, the coordinator of Uganda’s Standard Gauge Railway project, shared that the agreement focuses on building the first segment of the planned electric railway line. The construction of this initial section is estimated to cost approximately 2.7 billion euros, or around $3 billion, with work set to commence in November. Once completed, this rail segment is expected to significantly reduce transport costs, improve the efficiency of moving goods, and provide Uganda with a direct connection to the Indian Ocean via the Kenyan port city of Mombasa.

Photo credit:Railways Africa

The construction, scheduled to last for 48 months, will be financed through a combination of Uganda’s own funds and credit from export credit agencies. Bageya Waiswa, the Permanent Secretary of Uganda’s Works Ministry, highlighted that this project represents a critical investment in the country’s infrastructure, positioning Uganda as a central hub for trade in the East African region.

The Standard Gauge Railway project is poised to reshape Uganda’s role in regional commerce, making it a key player in facilitating trade routes between East Africa and global markets. As Uganda embarks on this transformative journey, the collaboration with Yapi Merkezi signals a step toward modernizing its transportation infrastructure and strengthening economic ties with neighboring countries.