President Museveni launches rehabilitation of Tororo-Gulu Railway line and establishment of Gulu logistics Hub

 

President Yoweri Kaguta Museveni has launched the rehabilitation of the Tororo-Gulu Railway line and establishment of Gulu logistics Hub in Gulu City.

The President noted that the railway will significantly reduce the cost of transport thus impact commodity prices.

On average hauling a 40 feet container of goods by road from Mombasa Port to Kampala is $3600 US dollars while by rail it costs $1800 US dollars and logistics costs account for about 50% of the value of goods and services in Uganda

“Railway transport is cheap and carries bulk goods which will save our roads from wear and tear,” the president remarked.

 

In October 2018, the EU and the Ugandan government signed the financing agreement for the grant to rehabilitate the 375km line that ceased operations nearly two decades ago. The railway line cuts across seven districts. Mr Patrick Kinyera, the Gulu secretary for works, said the rehabilitation would boost economic development.

When complete, the railway line will benefit communities in northern Uganda, South Sudan and DRC

 

The logistics hub is located on a 54 acres piece of land in Layibi division, Gulu Municipality. The land was allocated by the Uganda Railway Corporation and the project funded by the European Union together with UK`s Department for International Development (DFID) through Trade Mark East Africa (TMEA).

The US$29 million (Shs107.3 billion) hub is designed as a dry port with both rail and truck terminals. The project will contain warehouses, container terminals and general lifting equipment’s.

The facility shall be offering handling and storage services, space for stakeholders dealing with freight transport; freight forwarders, shippers and transport operators and accompanying services such as customs inspections, tax payment, maintenance and repair, banking and information communication technology.