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PUBLISHED ON April 7th, 2015

Africa train travel project getting billions from favoured country benefactor

While the Kenyan portion of the new Standard Gauge Railway (SGR) is in part already under construction, the Ugandan portion of the project between the Kenya, Uganda, Rwanda, and South Sudan section will only reach up to the Ugandan border from where separate work contracts and funding will be needed to cross the “Pearl of Africa.”

Information received over the Easter weekend speaks of Uganda President Museveni himself witnessing the signing of US$3.2 billion deal with the China Harbour Engineering Company, which will be handling the engineering and procurement side of the project.

The main line of the new railroad will cross Uganda and link the border with Kampala. From there, the line is expected to move on to the border with Rwanda, while the dormant line from Kampala to Kasese will also be upgraded. In addition, a branch line will go north to connect the South Sudanese border town of Nimule, from where the section to Juba and beyond then has to be constructed under separate contracts.

Questions have already been asked about the route to the Nimule border point, as the Rift Valley Railways operated a narrow gauge line which already extends to Gulu, only a short distance from the South Sudanese border, and with special reference being made to the planned LAPSSET railway. This new SGR line will connect the port of Lamu with both Ethiopia and South Sudan and will no doubt compete for cargo volumes with the branch line from Uganda to South Sudan.

Only a few days ago, Tanzania also reaffirmed their plans to launch the construction of a new SGR line from Dar es Salaam to connect to their lake-side port city of Mwanza and also on to Kigali and Bujumbura. Should all projects be completed as the promotors suggest, this would add three major rail lines from the Indian Ocean ports to the hinterland in the space of just a few years. In the opinion of some experts, this is too many to provide sound financial returns, while in the opinion of others, it is too few to open up the respective countries for more trade opportunities.

Source: Eturbonews.com

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.

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