Turkish firm Yapi Merkezi, contracted by the Ugandan government to build the 273-kilometer Standard Gauge Railway (SGR) from Malaba to Kampala, has delivered heavy construction machinery to the site and is set to begin work.
Finance Ministry Permanent Secretary and Secretary to the Treasury Ramathan Ggobi explained that delays occurred as the contractor mobilized equipment, contributing to the slow start.
“We have released the first batch of funds, and the contractor has brought in the machinery,” he said, cautioning against politicizing the matter. “Remember, Uganda is landlocked—they had to transport that heavy equipment inland.”
The delays may push back the completion date, increasing overall costs.
The railway construction was launched by President Yoweri Kaguta Museveni in November last year, with an expected timeline of 48 months from November 2024. Despite the launch, progress has been slow.
Uganda signed the €2.7 billion (about UGX 10.8 trillion) deal with Yapi Merkezi in October last year.
The railway will connect Kampala to Malaba, passing through Butaleja, Namutumba, Luuka, Iganga, Mayuge, Jinja, Buikwe, Mukono, and Wakiso. It is part of a broader plan to strengthen East African trade routes. During the groundbreaking ceremony in Tororo, the President emphasized improving infrastructure to eliminate inefficiencies and support economic growth.
He noted that while other sectors have grown, transportation remains inefficient and costly.
“Our transport system is irrational—roads are overcrowded with vehicles and cargo, causing traffic, damage, and delays. Cargo must shift to rail and water transport, while petroleum should use pipelines,” Museveni said.
He added that transporting a 20-foot container from Mombasa to Kampala by rail would cost 50% less than by road. “Roads should mainly serve passengers; cargo should move by train.”
The SGR is a key part of Uganda’s national infrastructure strategy, aiming to modernize the transport network, streamline logistics, and enhance regional trade. It also aligns with the East African Community Railway Plan and the Northern Corridor Integrated Projects, connecting Uganda to Mombasa, South Sudan, Rwanda, and DR Congo.
This development is expected to strengthen ties with East African neighbors. Museveni thanked the Turkish government and Yapi Merkezi for their role in Uganda’s infrastructure progress.
At the signing of the contract, Eng. Waiswa Bageya, Permanent Secretary at the Ministry of Works and Transport, said the SGR would be financed through domestic and partner resources, following an EPC/T (Engineering, Procurement, and Construction Turnkey) model for timely delivery and risk control.
“The EPC/T model ensures completion on time and shifts risks to the contractor,” Bageya noted.
The Malaba-Kampala section is part of a larger plan covering 1,724 kilometers of rail. The next phases include:
Northern Line: Tororo to Gulu and Nimule (465km), with a spur to Pakwach and Vurra at the DR Congo border (297km).
Western Line: Kampala to Bihanga, Kasese, and Mpondwe (383km), with a spur to Hima Cement.
Southern Line: Bihanga to Mirama Hills on the Rwanda border (280km).
Vice President Jessica Alupo, who attended the launch, said the railway will attract investors, create jobs, and boost the economy.
Minister for Works and Transport Gen. Katumba Wamala said that in 2014, East African Community Presidents agreed each member would develop their own SGR section. Kenya has advanced to Naivasha and plans to extend to Malaba via Kisumu.
Tanzania has also progressed significantly, building SGR sections with the same Turkish firm. Operational segments include Dar es Salaam–Morogoro (300km) and Morogoro–Makutupora (422km), with the Makutupora–Tabora (294km) under construction. In August 2024, Tanzania launched a 541-km SGR from Dar es Salaam to Dodoma, costing $3.1 billion.
Katumba said the SGR is a priority under Uganda’s Vision 2040 and the NRM Manifesto.
Turkish Ambassador Mehmet Fatih AK described the railway as a transformative project, creating tens of thousands of jobs and boosting Uganda’s global competitiveness.
Erdem Arioglu, Vice Chairperson of Yapi Merkezi Holdings, said the 273-km line will be vital for trade and mobility, with a capacity to carry 25 million tonnes of cargo annually.
Benefits include increased trade, lower transport costs, job creation, better safety, reduced travel time, improved quality of life, and lower emissions.
A standard gauge railway (SGR) has rails spaced 1,420–1,460 mm apart. It is faster, more stable, and capable of carrying heavier loads than the meter gauge system (1,000 mm).