Uganda Railways Corporation (URC), the state-owned entity responsible for developing, operating and maintaining the country’s railway, marine and associated transport infrastructure, is progressing with key rehabilitation projects aimed at boosting freight and passenger services. The Corporation’s current operations and development plans reflect a focus on addressing longstanding infrastructure and operational challenges.
URC is currently moving approximately 250,000 tonnes of cargo per year, primarily consisting of heavy goods such as steel coils and billets. This figure remains below the annual target of 540,000 tonnes, which URC attributes to the condition of existing infrastructure. On the passenger side, the Corporation runs four weekday trips between Kampala and Mukono, transporting around 2,000 passengers per day, equating to roughly 48,000 passengers monthly. Plans to scale both freight and passenger volumes are closely tied to ongoing and upcoming infrastructure upgrades.
One of the flagship projects is the rehabilitation of the Tororo–Gulu metre-gauge railway line. The project, which commenced in July 2023, has achieved significant progress. As of April 2025, physical works on-site are 44.45% complete, with 82.78% of the required track materials—such as ballast—already delivered. In financial terms, the project stands at 65.6% completion, with total works completed amounting to 62.5% of the contract value.
In addition, URC is implementing the East African Community Railway Rehabilitation Support Project, supported by a USD 298 million facility from the African Development Bank. The project is focused on improving the efficiency of the Kampala–Malaba corridor and related infrastructure. This includes the construction of the Kampala–Kyengera and Port Bell railway lines, which will use concrete sleepers to support improved cargo and passenger movement. Ten new locomotives are to be procured, each capable of pulling more than 33 loaded wagons, along with 100 new wagons to expand carrying capacity.
Passenger experience is also part of the investment plan. The project includes the development of new Park & Ride stations at Namanve and Kyengera, as well as the modernisation of halts at Kireka, Namboole and other points along the line. The automation of level crossings within the Kampala Metropolitan Area is also scheduled, aimed at enhancing road safety where rail infrastructure intersects with roadways. In parallel, refurbishment works are planned for multiple key stations, including those at Kampala, Mukono, Jinja, Tororo, and others.
URC’s marine transport capacity is also being expanded through the construction of a new multipurpose cargo vessel and a service tugboat. These vessels will allow URC to increase cargo movement across Lake Victoria from the current 880 tonnes per route to approximately 1,500 tonnes. The project also makes provision for spare parts to support the maintenance of the rolling stock fleet.
Despite progress, URC continues to face several operational challenges. These include irregular financing, insufficient and aged rolling stock, outdated infrastructure, land encroachment, and high operational costs. Connectivity issues with regional partners in Kenya and Tanzania and incidents of vandalism further complicate operations. To address these constraints, a range of interventions has been initiated.
URC is actively pursuing the recovery of UGX 23 billion in compensation from the Uganda National Roads Authority and UGX 243 billion from the sale of Nsambya land, in line with directives from the Presidency. These funds are expected to provide essential financial relief and support the implementation of core projects.
Efforts to restore operational capacity include the immediate repair of nine locomotives and 300 wagons, at a cost of UGX 6 billion. A further UGX 6.6 billion has been allocated for the procurement of 300 saddles, enabling an increase in monthly freight volumes by up to 24,000 tonnes. To improve safety and reliability, UGX 500 million per month is being directed towards urgent track maintenance.
Fuel management reforms are also in progress. Storage facilities in Kampala, Jinja and Tororo are undergoing rehabilitation, and the Corporation is working to clear a UGX 2 billion fuel debt. Plans are in place to establish a UGX 10 billion reserve fund to support ongoing operations.
Regional cooperation remains a priority. URC is reinstating quarterly technical committee and CEO-level engagements with Kenya Railways and Tanzania Railways Corporation. It also plans to operationalise the existing Tripartite Agreement to resolve inefficiencies in cross-border operations. The Gulu Logistics Hub is another key focus area, with preparations underway to mobilise rolling stock ahead of the anticipated completion of the Tororo–Gulu line.
Internally, the Corporation is working on building institutional capacity. Measures include the introduction of performance contracts for senior staff, structured training programmes, and the development of a leadership pipeline. URC is also reviewing its real estate portfolio, with the intention to develop a commercial master plan that will attract investors and help finance network expansion without increasing the burden on the national budget.
A more customer-focused approach is being introduced through structured engagement forums and the implementation of digital tools such as real-time cargo tracking, e-booking, and ticketing systems. These changes are supported by a national communications and marketing drive aimed at improving the Corporation’s public image and encouraging wider service uptake.
As part of its broader transformation agenda, URC is finalising a five-year strategic and business plan covering the period 2025/26 to 2029/30. The plan includes settling domestic arrears amounting to UGX 8 billion, which encompasses staff entitlements and retirement obligations.
While challenges remain, Uganda Railways Corporation seems to be taking steps to improve its operational resilience and expand its service offering. Upon completion of the current infrastructure and rolling stock improvements, the Corporation aims to move more than 600,000 tonnes of cargo per year and substantially increase its daily passenger capacity, marking a significant shift in Uganda’s rail transport landscape.
