Uganda launches Standard Gauge Railway Project

Late last week, Uganda launched a significant US$3 billion Standard Gauge Railway (SGR) project that will connect the country to the Kenyan border, with the potential to enhance trade throughout East Africa. President Yoweri Museveni officially inaugurated the construction of the first phase of the 272-kilometer (169-mile) railway stretching from Malaba to Kampala.

Once completed, the railway will have the capacity to transport 1,000 tons of cargo per trip, significantly improving transportation efficiency, accessibility, and service delivery.

Museveni emphasized that this project will strengthen trade relations between Uganda and its neighboring countries. He pointed out that inadequate infrastructure is estimated to reduce trade volumes in Africa by 40 percent, resulting in the continent’s share of global trade being less than 5 percent, with intra-African trade below 15 percent.

In contrast, other continents enjoy trade shares ranging from 40 percent to 60 percent.

He highlighted that the lack of connectivity in Africa’s infrastructure – encompassing seas, railways, roads, and aviation – hinders trade and compels countries to depend heavily on foreign markets. “By connecting Uganda to the entire region, we aim to boost regional trade, enabling us to trade directly within Africa instead of relying on distant markets,” he stated.

The project, which will include an electric railway line and all necessary infrastructure, is expected to be completed within 48 months.

Upon completion, the SGR will:

1. Enhance regional integration and international trade.
2. Lower transport costs from 0.155 per tonne-km to 0.05 per tonne-km.
3. Decrease travel times from Kenya’s port of Mombasa to Uganda’s capital, Kampala from 10-14 days to just one day.
4. Reduce road wear and maintenance costs.

Recently, Uganda signed a US$3 billion contract with Türkiye’s Yapı Merkezi for this ambitious initiative. The strategic goal of the project is to connect Uganda’s rail network to Mombasa, thereby improving regional trade connectivity.

The broader vision includes establishing a 1,700-kilometer (1,056-mile) electric railway system across Uganda. This modern infrastructure is anticipated to transform the transport sector and facilitate the movement of goods throughout the region, marking a vital advancement for Uganda’s economy.