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Home Business & Economy

Uganda plans Tanzania railway export route

Uganda plans railway link to Tanzania to expand mineral exports and cut transport costs through Dar es Salaam port

by Editorial Staff
1 week ago
in Business & Economy
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Construction workers installing railway tracks on a Standard Gauge Railway project in East Africa aimed at improving regional export transport links.

Workers lay railway tracks as East African governments expand rail infrastructure to improve regional trade corridors and mineral export routes

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Keypoints:

  • Uganda plans railway link to Tanzania
  • Project aims to boost mineral exports
  • AfDB reviewing potential project funding

UGANDA is planning to connect a new railway line under development to Tanzania’s rail network, potentially creating an alternative export corridor for minerals such as gold, copper and iron ore, according to a government document reviewed by Reuters.

The proposal marks a significant expansion of Kampala’s infrastructure ambitions as the country seeks to diversify trade routes and reduce reliance on existing logistics corridors through Kenya.

Strategy to diversify export access

Uganda currently ships most of its commodity exports through Kenya’s port of Mombasa. The newly disclosed railway proposal indicates authorities are pursuing multiple regional transport links to strengthen export resilience, lower freight costs and improve market access as mineral production rises across East and Central Africa.

Railway to pass through mineral-rich regions

According to a document from Uganda’s Ministry of Works and Transport, the planned railway would begin at the Tanzania border, run through southern and south-western Uganda, and end at Mpondwe, a key border town connecting Uganda to the Democratic Republic of Congo.

Officials say the line is designed to unlock mineral-rich areas in both Uganda and Tanzania while providing direct access to Tanzania’s port of Dar es Salaam.

‘The main objective of the project is to connect the vast and mineral-rich regions of both countries to the port of Dar es Salaam whilst saving time and transportation costs,’ the ministry document stated, as reported by Reuters.

The corridor could eventually expand beyond bilateral trade if neighbouring countries integrate their transport systems.

Complementing Kenya railway connection

Uganda has already announced plans to link its Standard Gauge Railway (SGR) project to Kenya’s railway network, which remains under construction. That initiative is intended to strengthen access to Mombasa, East Africa’s busiest maritime gateway.

By pursuing an additional connection to Tanzania, Uganda appears to be adopting a dual-corridor strategy, giving exporters alternative routes and reducing dependence on a single port.

Transport analysts say such diversification could improve efficiency, enhance regional competition among ports and stabilise supply chains for exporters.

African Development Bank weighs financing role

The ministry document indicated the African Development Bank (AfDB) could support early stages of the project, including preparatory and feasibility work.

An AfDB official confirmed to Reuters that the lender is considering Uganda’s request for funding support.

‘The bank may consider financing the project, depending on the outcomes of the studies, if the project is found to be bankable,’ said Epifanio Carvalho de Melo.

A spokesperson for Uganda’s Ministry of Works and Transport was not immediately available for comment when contacted by Reuters.

Regional integration ambitions expand

The document also suggested the Democratic Republic of Congo could eventually link its rail infrastructure to the project, potentially transforming the route into a wider regional logistics corridor connecting Central Africa to Indian Ocean ports.

Such developments align with broader continental efforts to improve cross-border infrastructure under the African Continental Free Trade Area (AfCFTA), which aims to boost intra-African commerce through improved connectivity.

If completed, the railway could significantly reduce transit times for minerals and other exports while lowering transport costs for landlocked economies across the region.

For Uganda, the initiative reflects a long-term strategy to position itself as a regional logistics hub connecting resource-rich inland economies to global shipping routes — a shift that could reshape trade flows in East Africa over the coming decade.

Tags: AfDB financingDar es Salaam portEast Africa infrastructuremineral exports AfricaTanzania rail networkUganda railway project
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Editorial Staff

Editorial Staff

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