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UG Standard - Latest News

Chinese, Korean Firms in Running for Uganda Railways’ Shs175.8 Billion Contract

Uganda Railways Corporation evaluates bids for Shs175.8 billion locomotive deal to boost freight volumes and revamp railway network

by LILIAN MUWONGE | UG STANDARD REPORTER
17/03/2025
in Business, News
Reading Time: 2 mins read
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KAMPALA

Passengers disembark from Uganda Railways Corporation locomotives at Kampala's main railway station, as the country revamps its rail network
Passengers disembark from Uganda Railways Corporation locomotives at Kampala’s main railway station, as the country revamps its rail network
  • Uganda Railways Corporation (URC) is evaluating bids from Chinese and South Korean firms for a $48 million (Shs175.8 billion) deal to supply 10 new diesel-electric locomotives.

The tender, which closed on March 7, drew bids from four companies, including China Shandong International Limited, CRRC Qishuyan Company Limited, Sung Shin Rolling Stock Technology Limited from China, and South Korean firm Dalian Lambo Machinery Manufacturing Co., Ltd.

According to URC spokesperson John Linonn Sengendo, the new locomotives will be deployed on the Tororo-Gulu route, which is currently under rehabilitation, as well as supplement the existing equipment on the main line from Malaba to Kampala.

“The contractor has given December this year as the deadline to handover the complete project, which is 10 months from now,” Mr Sengendo said, referring to the rehabilitation of the Tororo-Gulu line.

The rehabilitation of the 375km Tororo-Gulu line, funded by the Ugandan government at Shs199.9 billion ($54.14 million), is expected to be completed by December 2025.

The project includes drainage improvement, construction of new culverts and lining of side drains, earthworks, relocation of utilities, rehabilitation of five steel girder bridges, and railway track relaying including ballasting.

The URC is also working to overhaul the 265km Malaba-Mukono track, as part of a five-year push to revamp the railway, funded by the African Development Bank.

The project, worth $301 million, includes the procurement of wagons, a multi-purpose water vessel, rehabilitation of railway stations and ports infrastructure, and procurement of diesel multiple units, automation of level crossings, and construction of concrete sleeper lines.

According to URC managing director Benon Kajuna, the corporation currently transports only 250,000 tonnes of cargo annually, a significant decline from the one million tonnes moved in 2006.

The decline in cargo volumes is partly due to aging infrastructure, which is being addressed under the African Development Bank-funded project, Mr Sengendo said.

The railway line is part of the East African Community’s Northern Corridor, which links the capital, Kampala, to Kenya’s seaport at the coastal city of Mombasa.

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Tags: AfricaChina Shandong InternationalCRRC QishuyanDalian Lambo Machinery ManufacturingEast africalocomotivesrailway rehabilitationSung Shin Rolling Stock Technologytransport infrastructureUgandaUganda Railways CorporationUrc

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