Uganda’s infrastructure development plans received a boost in realization after the east African nation signed a $3 billion deal with Turkey’s Yapı Merkezi to construct 272 kilometres of Uganda’s Standard Gauge Railway. The railway plans to link Kampala to Malaba at the border with Kenyan sgr and provide a link to the Uganda rail network to the port of Mombasa on the kenyan territory. The project is under construction as part of a bigger plan to develop an extra 1,700-kilometer electric rail system that will transform the transport sector and enhance the flow of goods between regions in Uganda.
Completion date
The construction is to commence in November, 2024 and would take 48 months to complete the project. The domestic expenditure together with credit from export finance organizations will be used to finance the project in Uganda. When finished transport costs will drop significantly and trade will be enhanced cutting the cost of moving goods from the inland origins to the costal ports thus enhancing Uganda’s economy.
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Yapı Merkezi that has started the construction after China Harbour Engineering Company (CHEC) could not proceed financing; is a player who has a plenty of experience in East Africa infrastructure industry. The Turkish firm is also responsible in the construction of the SGR in Tanzania which stretches at 1,219 kilometers from the port of Dar es Salaam to the land locked zones. Like Uganda’s SGR, Tanzania’s SGR seeks to open up regional trade through links to Rwanda and Burundi but has direct rivalry with Kenya’s transportation network for cargo traffic from the hinterland countries.
Out of the African countries, Kenya was the first to embark on the construction of its SGR which it finalized in the Mombasa to Nairobi and by 2019 to Naivasha. On this aspect it has enhanced the movement of freights within Kenya, faster and a more efficient link to Uganda. Kenya and Tanzania have embarked on the implementation of SGRs as part of the strategic drive to foster the EAC’s objective of the development of a regional rail system facilitating integrated commerce centres.
Similar projects in east Africa
These developments in Kenya, Tanzania, and now Uganda which all show that modern rail transport is a major key towards enhancing the transport infrastructure in this region. The new Kampala to Malaba SGR networks will not only help shift from the rail religious reliance on roads but also enhance the cost of doing business thru efficient transport of goods. This kind of collective effort in infrastructure modernization is important in enhancement of East Africa’s comparatives in trade, especially when the region is keen on attracting more investors.
It is also rather remarkable how Turkey increases its presence in Africa, especially given that Yapı Merkezi operates in this continent. Today, construction companies from Turkey dominate the African market, implementing more than $ 85 billion worth of contracts by 2023.
Project factsheet
Constructor: Yapi Merkezi
Start date: November 2024.
Completion date: 2028.
Construction cost: $3 billion.
Location: Kampala to Malaba.
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