UGANDA announced on Thursday that the construction of its long-delayed Standard Gauge Railway (SGR), worth $2.2bn, will finally begin this year. The news brings relief to importers and exporters in the landlocked country who have long struggled with exorbitant transportation costs.
In a statement, the Ministry of Works and Transport confirmed that the government of Uganda is in advanced discussions with Turkish firm M/s Yapi Merkezi to undertake the development of the SGR eastern route. The plan is to commence construction within this calendar year.
The SGR project in Uganda has faced significant setbacks over the years. In 2015, Uganda signed an agreement with Chinese firm China Harbour and Engineering Company Ltd (CHEC) to implement the project, contingent on the Chinese government providing the necessary funding. However, after unsuccessful negotiations with the Chinese for several years, Uganda terminated the agreement earlier this year and turned to Yapi Merkezi as an alternative partner.
The ministry stated that they are currently exploring alternative financing options from European sources, although specific funders were not mentioned.
The planned SGR line will span 273 kilometres (170 miles), connecting Uganda’s capital, Kampala, to the country’s border with Kenya. It is intended to link with Kenya’s existing Standard Gauge Railway, which ultimately leads to the seaport of Mombasa on the Indian Ocean.
Uganda expects the railway to significantly enhance the speed and cost-effectiveness of transporting key exports such as coffee and tobacco. Currently, the country relies on expensive and slow road connections, as well as a century-old narrow gauge rail line established by its former colonial power, Britain.