In November 2024, Uganda embarked on a transformative journey with the commencement of its Standard Gauge Railway (SGR) project, marking a major step toward modernizing the nation’s transportation infrastructure and strengthening regional trade. This ambitious initiative is closely linked to Kenya’s Standard Gauge Railway, forming a seamless trade corridor that enhances economic integration across East Africa.
The first phase of Uganda’s SGR involves the construction of a 272-kilometer electrified railway line from the eastern border town of Malaba to the capital city, Kampala. This segment is a critical component of a broader 1,700-kilometer network that will eventually connect Uganda to neighboring countries, including Rwanda, the Democratic Republic of Congo, and South Sudan. By integrating with Kenya’s SGR, which runs from Mombasa to Naivasha, the project is set to create a continuous railway link between Uganda and the Indian Ocean, significantly reducing transportation costs and transit times for goods moving between the two countries.
Following years of planning and negotiations, the Ugandan government finalized a landmark €2.7 billion contract with the Turkish construction firm Yapı Merkezi in October 2024. This shift from previous discussions with Chinese contractors highlights Uganda’s commitment to advancing the project. Yapı Merkezi, who has experience in railway construction in Tanzania, brings expertise that aligns with the regional push for efficient rail transport systems.
The groundbreaking ceremony, officiated by President Yoweri Museveni in Tororo on November 21, 2024, underscored the SGR’s strategic role in modernizing Uganda’s infrastructure. President Museveni emphasized how the railway would complement Kenya’s SGR, making Ugandan exports more competitive by providing a faster and more cost-effective route to the Port of Mombasa. This development directly addresses previous inefficiencies in cargo transportation, which relied heavily on road networks.
Designed to support freight and passenger services, Uganda’s SGR will have the capacity to transport up to 1,000 tonnes of cargo per trip. This capability mirrors Kenya’s SGR freight operations, which have played a crucial role in decongesting roads and lowering logistics costs. The electrified railway also aligns with regional sustainability goals, reducing the environmental impact of transport.
Beyond its logistical benefits, Uganda’s SGR is expected to create over 600,000 job opportunities during construction, including 30,000 direct employment positions. This employment boom will stimulate local economies along the railway corridor, echoing the economic impact witnessed in Kenya during the construction of its SGR. Additionally, Uganda’s funding model, which blends domestic resources with export credit financing, mirrors Kenya’s approach, aiming for financial sustainability while mitigating debt risks.
The Malaba-Kampala section is expected to be completed by late 2028. It will fully integrate with Kenya’s SGR to enhance the efficiency of the Northern Corridor. Once operational, this railway link will reinforce Uganda’s position as a key player in East Africa’s trade network, boosting exports, improving supply chains, and fostering deeper economic ties with Kenya and beyond.
Uganda’s SGR is more than just a national infrastructure project—it is a critical piece of East Africa’s broader economic puzzle. As tracks are laid and connections strengthened, this railway stands as a testament to the region’s vision for a more integrated, efficient, and prosperous future.
This article was published by Githua Kihara, an editorial consultant for FEAFFA’s Freight Logistics Magazine. For any inquiries, please contact us via email at editorial@feaffa.com or freightlogistics@feaffa.com, or reach out to Andrew Onionga directly at onionga@feaffa.com / +254733780240.
