Economy

Uganda Plans to Build $600 Million Rail Line

The line will connect with a €2.7 billion ($2.9 billion) track that will link Uganda’s capital of Kampala to Malaba at the border with Kenya.

Uganda plans to build a rail line linking a town in the east to a proposed port on Lake Victoria for a combined $600 million, which will provide better logistics links through Tanzania to the Indian Ocean.

Feasibility studies for the 60-kilometer (37-mile) railroad linking Tororo, near the border with Kenya, to the proposed port in the nearby Busia District are complete, Perez Wamburu, the Standard Gauge Rail Project’s coordinator, said in an interview in the capital, Kampala.

The line will connect with a €2.7 billion ($2.9 billion) track that will link Uganda’s capital of Kampala to Malaba at the border with Kenya.

Ultimately, it would enable movement of cargo across the lake between the new harbor and Tanzania’s port of Mwanza, which is linked to the Indian Ocean hub of Dar es Salaam by a railroad.

Also Read: Uganda Signs $2.95 Billion Deal for SGR Extension to Kampala

Uganda considered the route after Kenya stalled a plan to extend its section of the line from Naivasha town to Malaba, Wamburu said.

Uganda, which mainly uses Kenya’s port of Mombasa, said it got assurance that Kenya would extend the line to their common border.

Uganda on Monday signed a deal with Turkey’s Yapi Merkezi Holdings AS to build the Kampala-Malaba line. The deal is the first phase of the country’s plans of more than 1,700 kilometers of standard gauge railroads, Wamburu said.

 

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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