Uganda Signs Historic Contract for Major Railway Line Construction with Yapı Merkezi

On October 14, 2024, Uganda took a crucial step in developing its transport infrastructure by signing a $3 billion contract for the construction of the Malaba-Kampala railway line. This ambitious project, entrusted to the Turkish company Yapı Merkezi, promises to revolutionize regional connectivity and stimulate economic growth in East Africa.

A Project of Considerable Scale

The Malaba-Kampala railway line, stretching 273 kilometers, represents a significant technical and logistical challenge. Erdem Arıoğlu, Vice Chairman of Yapı Merkezi, emphasized the importance of this project: “We are very proud to undertake the Eastern Route Railway Project, one of the largest projects signed by Turkish contractors abroad, which will connect Uganda to Kenya.”

The project includes:

  • A fully electrified standard gauge railway
  • A design speed of 120 km/h
  • 2 major stations and 4 medium stations
  • 1 marshalling yard and 3 freight terminals
  • An annual freight capacity of 25 million tons

General Katumba Wamala, Uganda’s Minister of Work and Transport, highlighted the strategic importance of this initiative: “This project will enhance regional trade and economic integration, marking an important milestone in Uganda’s transportation history.”

Indeed, once completed, this railway line will connect Uganda to the port of Mombasa in Kenya, providing crucial access to the Indian Ocean for this landlocked country. Furthermore, the Kampala-Kasese (Western Route) project, also entrusted to Yapı Merkezi, could eventually offer the Democratic Republic of Congo rail access to the port of Mombasa.

A Turning Point in Project Realization

Interestingly, this project has seen some twists and turns. Initially awarded to a Chinese company in 2015, the contract was cancelled by the Ugandan government due to financing issues. Yapı Merkezi then entered the picture, signing a Memorandum of Understanding in November 2022, followed by a detailed proposal in July 2023. Negotiations concluded in June 2024, and the Letter of Award was received on September 24, 2024.

This railway project represents much more than just transport infrastructure. It embodies the aspirations of Uganda and the region for better economic integration and sustainable growth. With an expected reduction in transportation costs, this project could have a significant impact on the economy of this landlocked country.

The signing ceremony, which was held in the presence of Turkish Ambassador H.E. Mehmet Fatih Ak and senior Yapı Merkezi officials, marks the beginning of a new era for transportation in East Africa. As construction is expected to begin this year, all eyes will be on this project that promises to redraw the economic map of the region.