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Uganda Railways Closes Tender for 10 New Locomotives to Boost Rail Capacity Uganda Railways Closes Tender for 10 New Locomotives to Boost Rail Capacity

On 7 March 2025, the Uganda Railways Corporation (URC) announced the closure of its tender for the supply of 10 brand-new diesel-electric locomotives. This procurement marks a significant milestone in Uganda’s efforts to modernize its railway infrastructure under the East African Community (EAC) Metre Gauge Railway Capacity Building Project. The initiative, funded by the African Development Bank (AfDB), aims to enhance the efficiency and capacity of Uganda’s rail network, a critical component of the country’s transport and logistics system.

The tender process attracted considerable interest, with 34 companies issued bidding documents. Ultimately, four companies submitted bids in compliance with the tender requirements. The bidding companies include:

  • China Shandong International Limited
  • CRRC Qishuyan Company Limited
  • Sung Shin Rolling Stock Technology Limited
  • Dalian Lambo Machinery Manufacturing Co., Ltd

This procurement is part of a broader strategy to revitalize Uganda’s railway system, which has long been a vital link for both domestic and regional trade. The acquisition of new locomotives is expected to significantly improve the reliability and efficiency of rail transport, reducing costs and enhancing competitiveness for businesses across the region.

Comprehensive Upgrades Under the EAC Metre Gauge Railway Project

The purchase of the locomotives is just one component of the EAC Metre Gauge Railway Capacity Building Project. The initiative encompasses a range of infrastructure and operational upgrades designed to modernize Uganda’s rail network. Key elements of the project include:

  • Procurement of wagons and a multi-purpose water vessel: These additions will enhance cargo handling capacity and improve multimodal transport options.
  • Rehabilitation of stations and port infrastructure: Upgrades to key facilities will ensure smoother operations and better service delivery for passengers and freight customers.
  • Procurement of Diesel Multiple Units (DMUs): These units will provide more efficient and flexible passenger transport options.
  • Automation of level crossings: This measure will improve safety and reduce delays at rail crossings.
  • Construction of concrete sleeper lines: New lines will be built from Kampala to Kyengera and Port Bell, enhancing the durability and capacity of the rail network.

These comprehensive upgrades reflect Uganda’s commitment to creating a modern, efficient, and sustainable railway system that meets the demands of a growing economy and population.

Driving Regional Connectivity and Economic Growth

Uganda’s railway modernization efforts are part of a broader push to strengthen regional connectivity within the East African Community. The improved rail network will facilitate the movement of goods and people across borders, reducing transport costs and boosting trade. For African travel and logistics professionals, these developments present new opportunities to leverage rail transport as a cost-effective and reliable alternative to road transport.

The procurement of new locomotives and the associated infrastructure upgrades are also expected to have a significant impact on Uganda’s domestic economy. By improving the efficiency of freight and passenger services, the railway system will support key sectors such as agriculture, manufacturing, and tourism. Additionally, the project is likely to create jobs and stimulate investment in related industries, further contributing to economic growth.

Opportunities for African Travel and Logistics Professionals

The modernization of Uganda’s railway system offers exciting opportunities for African travel agents and logistics providers. The enhanced rail network will provide a more reliable and cost-effective option for transporting goods and passengers, opening up new possibilities for regional tourism and trade. Travel professionals can capitalize on improved passenger services to promote rail-based tourism experiences, while logistics companies can benefit from reduced transport costs and faster delivery times.

For Uganda, the acquisition of 10 new diesel-electric locomotives represents a critical step toward achieving its vision of a modern, efficient, and sustainable railway system. By investing in infrastructure and technology, the country is positioning itself as a key player in the East African transport network, with far-reaching benefits for businesses and communities alike.

As the EAC Metre Gauge Railway Capacity Building Project progresses, Uganda’s rail sector is set to play an increasingly important role in driving economic growth and regional integration. For African travel and logistics professionals, these developments highlight the potential of rail transport as a cornerstone of the continent’s future connectivity and prosperity.