The Ministry of Finance, Planning, and Economic Development has disbursed $75 million (270 billion shillings) to Standard Gauge Railway contractor Yapi Merkezi.
This funding will kick-start initial preliminary works for the 273-kilometer SGR project, launched by the President of Uganda in November 2024.
The project is expected to take four years to complete.
The project supervisor of Standard Gauge Railway has introduced the contractor Yapi Merkezi and Project consultant SSF Joint Venture to stakeholders in Tororo and Buikwe districts.
The contractor has started mobilizing equipment and workforce to carry out engineering designs and design the railway route.
They will also construct labor camps, concrete batching units, and identify sources of local materials.
A Game Changer for Uganda’s Economy
The entire 1,725-kilometer SGR project aims to ease the movement of goods between the port of Mombasa in Kenya to Kampala, Uganda’s capital, and subsequently to DRC, South Sudan, and Rwanda.
The SGR is a strategic investment that will cut cargo transport costs by half, from $120 per tonne.
It will also reduce the time spent moving goods from five days to 24 hours.
This will transform Uganda into a land-linked country, rather than a landlocked one.
Employment Opportunities and Economic Benefits
The SGR construction will offer employment opportunities to Ugandans during the construction and completion phases.
Residents in Tororo will benefit from the project, with the contractor setting up a monitoring yard in Malaba town council.
An international Railway station will be built at Kasoli, along with an inland container depot.
The contractor will also set up a railway sleepers factory in Tororo to produce sleepers for the 273-kilometer long line.
Multiplier Effect and Stakeholder Support
The multiplier effect of the project is enormous, and there is a need for concerted effort from all stakeholders.
This includes political, technical, traditional, religious, media, suppliers, and business persons.
The government has both political and financial commitment towards the Standard Gauge Railway project.
Opportunities for Ugandans
As the project expands, there is a need for every Ugandan to reflect on how to fit into the $12.8 billion project.
This can be through labor supply, goods, and services.
The project comes with advanced technological expertise, and young people should take advantage of it to equip themselves with skills in the railways sector.
