Uganda Railways Corporation Evaluates Bids for Locomotive Supply Deal

Uganda Railways Corporation is reviewing bids from Chinese and South Korean firms for a $48 million deal to supply locomotives. The project includes rehabilitating the Tororo-Gulu line and upgrading the Malaba-Mukono track. The aim is to boost cargo transport efficiency, which has declined significantly due to aging infrastructure.

The Uganda Railways Corporation (URC) is currently assessing bids from Chinese and South Korean companies for a contract valued at $48 million to supply ten new diesel-electric locomotives. This tender closed on March 7, and the participating firms include China Shandong International Limited, CRRC Qishuyan Company Limited, Sung Shin Rolling Stock Technology Limited, and Dalian Lambo Machinery Manufacturing Co., Ltd. from South Korea.

John Linonn Sengendo, URC’s spokesperson, stated that the new locomotives are intended for use on the rehabilitated Tororo-Gulu route and to enhance the existing fleet on the main line from Malaba to Kampala. He mentioned that the contractor is expected to complete the project by December, marking a ten-month timeline for delivery.

The rehabilitation of the 375-kilometer Tororo-Gulu line, financed by the Ugandan government at a cost of Shs199.9 billion (approximately $54.14 million), is projected to be finalized by December 2025. This comprehensive project will include improvements to drainage systems, the construction of culverts, and the refurbishment of bridges, as well as railway track renewal and associated earthworks.

Additionally, URC is planning significant upgrades to the 265-kilometer Malaba-Mukono track as part of a five-year enhancement strategy supported by the African Development Bank. This $301 million initiative encompasses the procurement of wagons and a multi-purpose water vessel, improvements to railway stations, and the automation of level crossings among other components.

Benon Kajuna, URC’s managing director, highlighted a concerning decline in cargo transport, with only 250,000 tonnes moved annually compared to one million tonnes in 2006. This decrease has been attributed to outdated infrastructure, which the African Development Bank-funded project aims to modernize. The railway is a vital component of the East African Community’s Northern Corridor, linking Kampala to the coastal seaport of Mombasa in Kenya.

The Uganda Railways Corporation is actively pursuing modernization through the procurement of new locomotives and infrastructure rehabilitation. With substantial investments from both national funding and the African Development Bank, these initiatives aim to rejuvenate freight transport capabilities and improve operational efficiency. The completion of these projects is expected to enhance connectivity in the region and stimulate economic growth, particularly in cargo volumes.

Original Source: www.pmldaily.com