Kampala, Uganda | NOW THEN DIGITAL — Uganda Railways Corporation has taken a significant step towards reviving the Kampala-Dar-es-Salaam railway route by receiving 20 refurbished flatbed wagons. These wagons were overhauled by the Ugandan company MOFR Engineering Solutions Ltd at a cost of just over 1 billion Shillings (approximately 288,000 US Dollars). The funding was provided by the Central Corridor Transit Transport Facilitation Agency (CCTTFA).
The Works and Transport Minister, General Edward Katumba Wamala, announced the government’s goal of increasing railway cargo transportation from the current 40,000 to 200,000 tons annually within two years. Currently, nearly 90% of cargo destined for Uganda is transported by road, which is the most expensive means of transport. Minister Katumba Wamala urged the business community to embrace the railway system to reduce the cost of doing business in the country.
However, some transporters and importers expressed concerns about high railway tariffs compared to the Mombasa route, despite the incentives offered by the Tanzanian government. Stuart Mwesigwa, Director of Business Management at Roofings, one of Uganda Railways’ major customers, called for a reduction in tariffs, especially given the railway’s increasing clientele.
Minister Katumba Wamala assured the private sector that as railway infrastructure improves and usage increases, costs will decrease. The private sector also called for solutions to other challenges affecting trade between Uganda and Tanzania, such as communication and the acquisition of work permits.
The government is also working to increase water transport capacity between Mwanza in Tanzania, and Kampala and Jinja, which includes the renovation of the MV Kaawa and the retrieval of the sunken MV Kabalega. Cooperation and investment in infrastructure are seen as vital to the success of cargo transport via rail and waterways in the region.
The Executive Secretary of CCTTFA, Flory Okonge Okandju, urged Uganda to expedite its infrastructure program, emphasizing the importance of completing the system. He commended Tanzania for its investments in water and railway transport projects, encouraging Uganda to follow suit to prevent cargo congestion at the ports.
Minister Katumba Wamala agreed that much needs to be done to avoid port congestion and emphasized the importance of the private sector increasing its use of the railway network, which is currently underutilized.
The Ugandan officials called on CCTTFA to extend financial assistance to rehabilitate more railway equipment, as there are approximately 500 pieces awaiting refurbishment. Sarah Nambasa, the Corporation Secretary of URC, noted that the refurbished wagons will improve cargo movement options for Ugandans and mentioned other facilities in development to support the expected increase in cargo transport by train.
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