Uganda is planning to construct a US$ 3.2bn railway line that will join Kampala through Malaba to Nimule in South Sudan. This will be in part of the Standard Gauge Railway construction project already under way to connect East African countries.
The railway project in Uganda has received a major boost following the signing of Engineering Procurement Construction (EPC) agreement last week by Uganda’s president-Yoweri Museveni and China Harbour Engineering Company Limited (CHEC).
China has approved financing the 476-km line, which includes providing detailed designs of the railway.
Museveni said that once the railway line is complete, cargoes from the ports will be transported at a faster and cheaper rate.
The Standard Gauge Railway construction project was agreed on by four countries; Kenya, Uganda, Rwanda and South Sudan and it will be a vital infrastructure project for the Northern Corridor.
China Communication Company is undertaking construction of the Kenyan part of the Standard Gauge Railway, in a project that will see 40% of work sub-contracted to local companies.