Uganda signs contract with Turkish firm Yapi Merkezi for new railway project

In a significant move to enhance regional trade, the Ugandan government has signed a contract with the Turkish construction firm Yapi Merkezi to construct a 272-kilometer (169-mile) segment of the Standard Gauge Railway.

This project is part of a larger plan for a 1,700-kilometer electric rail line aimed at improving trade connections and reducing transportation costs, as stated by Uganda’s Standard Gauge Railway project coordinator, Perez Wamburu.

During the signing ceremony, Bageya Waiswa, the permanent secretary of Uganda’s Ministry of Works, highlighted the project’s importance, asserting that it would facilitate better trade opportunities for the nation.

Uganda plans to finance the railway construction using its own funds, supplemented by credit from export credit organizations. The project is expected to be completed within 48 months from the commencement date.

The new rail section will link the capital, Kampala, to Malaba, situated at the border with Kenya, thus connecting landlocked Uganda to Kenya’s rail network and, ultimately, to the Indian Ocean seaport of Mombasa.

Previously, Uganda had entered into an agreement in 2015 with the China Harbour and Engineering Company Ltd (CHEC) to execute this project, contingent upon securing funding from the Chinese government.

However, after several years of unproductive negotiations, Uganda decided to terminate that agreement last year and engage with Yapi Merkezi, which is also involved in a similar railway project in neighboring Tanzania.

This latest development marks a crucial step in Uganda’s efforts to boost its infrastructure and improve trade links in the region.

Also Read

Navigating Climate Action: Impacts of shipping carbon tax on African economies

DSV acquires Schenker in €14.3 Billion Deal