Shs 93.5 Billion Needed to Revamp Train Services

The Uganda Railway Corporation is seeking for more than Shs 93.5 billion to revamp railway services in Uganda. The money is needed within six months for both minimum repair and maintenance of assets, the corporation’s chief civil engineer, Geoffrey Obala told MPs.

The corporation also hopes to use the money to support operations including staff costs, and insurance for staff and assets which are the major operational costs.

Obala appeared before Parliament’s National Economy Committee that is interfacing with various sectors to discuss their needed stimuli to respond to the disruptions caused by the coronavirus pandemic.

Obala told the MPs that the COVID-19 pandemic heavily impacted on the railway operations, and it came at the time the corporation was grappling with a shortage of funding.

Once availed, Obala said, the money will improve cargo volumes handled by the corporation from 18,000 metric tons to 60,000 metric tons and eventually 120,000 metric tons.

About Shs4.5 billion will be used on minimum repairs on the railway line from Kampala to Malaba to improve line stability and reduce transit times, accidents and deliver more cargo.

It also hopes to use more than Shs 1.6 billion to carry out minimum repairs to locomotives and wagons to improve haulage capacity, plus another Shs 300 million to rehabilitate fuel tanks at Kampala and Tororo to provide additional storage capacity for fuel imports as well as enhance the goods in transit insurance.

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