Business 29 April 2026 Daily Monitor (Uganda)
$300m Investment: Can URC Revive Uganda's Ailing Railways?
Uganda Railways Corporation (URC) is spearheading a revival of the nation's railway network with $300 million from the East African Railway Rehabilitation Support Project, aiming to restore it as a key driver of economic growth. Recent upgrades have boosted cargo volumes, with ambitions to double or triple them in the coming years. Source: https://www.monitor.co.ug/uganda/business/markets/-300m-bet-will-urc-this-time-deliver-the-long-promised-railways-revival--5441190
Uganda’s railway system, once a vital link to the Kenyan coast, had fallen into disrepair due to neglect, underinvestment, and failed concessions. Tracks were encroached upon, locomotives rusted away, and freight shifted to overburdened roads.
The tide is turning with the $300 million (Shs1.1 trillion) East African Railway Rehabilitation Support Project (EARRSP). URC’s senior public relations officer, Linnon Ssengendo, describes this as a pivotal moment to transform the network into a modern transport artery supporting national development.
The decline accelerated after a 2006 25-year concession to Rift Valley Railways, which failed to invest adequately. By 2018, when the government reclaimed control, URC faced over Shs1 trillion in backlog maintenance and a dilapidated system.
Progress began in 2022 with a $51 million rehab of the Mukono-Malaba line, key for Mombasa port access. The Kampala-Mukono stretch followed in 2023, alongside new locomotives. Cargo has surged from near zero in 2018 to over 350,000 tonnes yearly, targeting 700,000-1 million tonnes soon.
EARRSP targets the 265km Malaba-Kampala corridor, at 54% completion by March 2026. Major spends include $114.52 million for track upgrades and $43.4 million for 10 locomotives, wagons, and tankers. A breakdown crane and multi-modal assets like a Lake Victoria vessel and port rehabs at Port Bell and Jinja Pier are also planned.
A new Railway Training Institute on 22 acres in Tororo will build local skills. The project promises jobs for over two million across 12 districts and commuter services to ease Kampala-Jinja road congestion.
Rail offers efficiency gains: lower fuel use, less highway damage, fewer accidents, and reduced emissions—crucial for landlocked Uganda’s trade. It’s a bridge to a future Standard Gauge Railway, slashing Mombasa-Kampala transit from 52 to 24 hours and costs to $800-900 per container.
Success hinges on rising cargo volumes, lower costs, and faster times, potentially making Uganda a regional logistics powerhouse.
Source: Daily Monitor (Uganda)