The single-track line, which links eastern and northern Uganda to the port of Mombasa in neighbouring Kenya, has been out of use for nearly 27 years due to insecurity in northern Uganda and stiff competition from road freight.
The project includes the installation of steel sleepers by Sogea-Satom and will be completed in 2023. The improved line will be connected to the new Gulu Logistics Hub, a inland terminal with capacity for 200,000 TEU, which will help Uganda Railway Corporation to reduce the cost of transport and improve the movement of freight to and from South Sudan and Democratic Republic of Congo.
The EU is providing €21.5m of the total project costs under the 11th European Development Fund. The Ugandan government will provide the remainder of the funding.