Uganda Plans $600M Rail Line to Boost Logistics Through Tanzania

AFRICAN BUSINESS AND ECONOMYOctober 15, 2024 at 5:01 PM UTC

TLDR

Uganda plans to construct a $600 million rail line from Tororo to Lake Victoria port, enhancing logistics links to the Indian Ocean.
The 60-kilometer railroad will connect Tororo to Busia District as part of a larger $2.9 billion track linking Kampala to Malaba at the Kenyan border.
This rail network will boost cargo movement across Lake Victoria, linking Uganda's harbor to Tanzania's Mwanza port, connected to Dar es Salaam.

Uganda is planning to build a $600 million rail line linking the eastern town of Tororo to a proposed port on Lake Victoria.

This infrastructure project aims to improve logistics links through Tanzania to the Indian Ocean. The 60-kilometer (37-mile) railroad will connect Tororo, near the Kenyan border, to the new harbor in Busia District.

The new line will be part of a larger €2.7 billion ($2.9 billion) track that links Uganda’s capital, Kampala, to Malaba at the Kenyan border. The rail network will facilitate cargo movement across Lake Victoria, connecting Uganda’s harbor to Tanzania’s port of Mwanza, which is linked by rail to Dar es Salaam, a major Indian Ocean hub.

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Key Takeaways

Uganda considered this alternative route after Kenya delayed plans to extend its rail line from Naivasha to Malaba. However, Kampala has received assurances that Kenya will eventually complete the extension. On Monday, Uganda signed a deal with Turkey’s Yapi Merkezi Holdings AS to build the Kampala-Malaba section, marking the first phase of Uganda’s 1,700-kilometer standard gauge rail network plans.

Uganda

Kenya

Tanzania

Regional Connectivity

Economy

Indian Ocean

Logistics

Transport