URC seeks $42m to re-open Kasese line

Jun 03, 2004

Uganda Railways Corporation (URC) is looking for $42m to re-open the Kampala-Kasese Railway

By David Muwanga

Uganda Railways Corporation (URC) is looking for $42m to re-open the Kampala-Kasese Railway, a top company official has said.

“The line still has potential with an internal rate of return of about 25%, including cement from Kasese, imports like sugar, salt, rice and petroleum products, Eng. Daudi Murungi , the managing director of URC, said recently.
Murungi said at the recent National Technology Conference that oil prospects in western Uganda had made the repairs urgent.

“Studies have shown a requirement of $42m but if a decision is made to rehabilitate it using re-conditioned hand sleepers and rails, it could bring down the cost to between $15m and $20m,” he said.
Murungi said the lucrative sections of Uganda’s railway network were due for concession with Kenya Railways in order to have a wider market and remove bottlenecks.

“The concession has advanced whereby reports for Kenya and Uganda railways are ready and marketing of the railways has began,” he said.
Murungi said legislation in Kenya and Uganda was being prepared and would be presented to parliaments of both countries for a new railway statute in Uganda and amendment of the Kenya Railway Statute.

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