Kampala, Uganda | NOW THEN DIGITAL — The Uganda Railways Corporation has received 20 refurbished flatbed wagons, a development aimed at revitalizing the Kampala-Dar-es-Salaam railway route. These wagons, refurbished by the Ugandan company MOFR Engineering Solutions Ltd, were financed by the Central Corridor Transit Transport Facilitation Agency (CCTTFA) at a cost of just over 1 billion Shillings (approximately 288,000 US Dollars).
General Edward Katumba Wamala, the Minister of Works and Transport, expressed the ambition to boost railway cargo transportation from 40,000 to 200,000 tons annually within two years. Presently, the majority of the cargo destined for Uganda travels by road, a costly mode of transportation for both the business community and the government.
Minister Wamala encouraged the business community to embrace the railway system, which could help reduce the cost of doing business in the country. However, transporters and importers raised concerns about high railway tariffs compared to the Mombasa route, despite incentives offered by the Tanzanian government.
Stuart Mwesigwa, Director of Business Management at Roofings, a major customer of Uganda Railways, advocated for tariff reductions, particularly as demand for Uganda Railways’ services grows.
Minister Katumba Wamala assured the private sector that as infrastructure improves and the private sector’s use of the railway system increases, costs will naturally decrease. The private sector also urged the Ugandan and Tanzanian governments to address other trade-related challenges, including communication and the acquisition of work permits.
The Chairman of Uganda National Transport Alliance, William Busulwa, stressed the importance of overcoming challenges like communication and work permits to boost trade between Uganda and Tanzania.
Minister Wamala highlighted ongoing plans to increase water transport capacity between Mwanza in Tanzania and Kampala and Jinja. Renovation work on MV Kaawa is set to commence soon, and efforts are underway to retrieve MV Kabalega, which sank in 2005.
Executive Secretary of CCTTFA, Flory Okonge Okandju, called for an expedited infrastructure program along the central corridor to prevent port congestion. Minister Wamala acknowledged the need to ensure that ports on Lake Victoria and within Uganda do not become congested with cargo and encouraged increased utilization of the railway network by the private sector, which is currently underutilized.
The Ugandan officials also urged the CCTTFA to extend financial assistance for the rehabilitation of additional equipment, with around 500 pieces awaiting refurbishment at the URC yards.
Sarah Nambasa, the Corporation Secretary of URC, noted that the refurbished wagons would enhance cargo movement options for Ugandans and that the URC was working on additional facilities to support the expected increase in cargo transport by train. These efforts include the conversion of the Kampala Goods Shed into an inland depot.
Today, the Minister of Works and Transport, @GenWamala accompanied by @mr_bageya has commissioned 20 flatbed wagons rehabilitated by the @ccttfaorg. The wagons are meant to strengthen the capacity of URC to serve transporters using the Central Corridor better. pic.twitter.com/kTCBtkwHON
— UGANDA RAILWAYS CORPORATION (@RailwaysUganda) October 20, 2023
