Uganda has officially signed a significant agreement with Turkish construction firm Yapi Merkezi Holdings to build a 272-kilometer railway.
This landmark deal was finalized on Monday, marking an important development in improving transportation infrastructure in East Africa.
The new railway is designed to enhance both speed and cargo capacity. It aims to strengthen Uganda’s connections to crucial regional trade routes, including access to the Indian Ocean seaport of Mombasa.
The agreement was signed in Kampala by Uganda’s Works Ministry Permanent Secretary Bageya Waiswa and Yapi Merkezi Holdings Vice Chairman Erdem Arioglu.
Uganda’s Minister of Works and Transport, Gen. Edward Katumba Wamala, and Turkish Ambassador Fatih Ak were also present during the signing ceremony.
Bageya highlighted that the Standard Gauge Railway (SGR) project will significantly reduce transportation costs.
He emphasized the project’s potential to facilitate trade across the region, benefiting not only Uganda but its neighboring countries as well.
The new railway will extend from the Malaba border post with Kenya to Uganda’s capital, Kampala.
This infrastructure upgrade is expected to provide faster and more efficient cargo transport compared to the existing meter-gauge system.
The current meter-gauge railway has a narrower track width of 1,000 mm, while the SGR will utilize a broader gauge of 1,420-1,460 mm.
This change will lead to improved logistics and trade dynamics in the region.
Initially, China Harbour Engineering Company was contracted to build the railway, but after eight years of delays, Uganda opted for Yapi Merkezi.
This decision reflects Uganda’s commitment to moving forward with its infrastructure plans.
