URC says it inherited a backlog of deferred maintenance estimated at Shs1.5 trillion, which is being sorted slowly. Photo / File
Benon M. Kajuna took office on January 31 as the new Uganda Railways Corporation (URC) managing director, replacing David Musoke Bulega, who had served in acting capacity for two years.
Before his appointment, Kajuna was the Ministry of Works and Transport director of transport.
His appointment, however, coincided with audit queries in the Auditor General’s report, among which highlight URC as one of the worst state enterprises. He spoke to Monitor'sPhilip Wafula about his plans and how he plans to turn URC around.
You have been in office for five months now. How is it so far?
It has been well. Most of our plans are work in progress. You know, rail is 40 percent more cost-effective than roads for bulk cargo. It is the smartest way to move fuel, steel, cement, and produce.
A modern rail system can protect roads from damage caused by heavy trucks, hence reducing the country’s Shs1.2 trillion annual road maintenance bill.
It can also reduce imported inflation and stabilize prices by lowering transport costs.
This, however, can only be achieved if deliberate efforts and investment are made.
Has there been any investment effort made so far?
When URC resumed operations following the termination of the Rift Valley Railways concession in 2018, we inherited a backlog of deferred maintenance of about Shs1.5 trillion for critical infrastructure such as tracks, vessels, ports, locomotives, and wagons.
URC was left with insufficient capacity to undertake its mandate. Yes, investments have been made since 2018 to kick-start the restoration process.
In 2022, $50m was secured for emergency works on the Mukono-Malaba railway section to make it motorable. In 2023, construction of the Kampala-Mukono section commenced, and works were concluded in 2024. Before the rehabilitation, the two sections were in a bad state, often causing derailment and trains to capsize.
Now that there is some investment, what are your key priorities to turn around URC?
When I took up this role, I knew the existing challenges and needs. I, therefore, came up with several strategies for the turnaround. One of the strategies is to strengthen relations with our counterparts at Kenya and Tanzania railways corporations.
Our mandate is fully dependent on these two entities. We have commenced engagements geared towards sorting out existing inter-rail challenges.
URC operates old rolling stock-wagons and locomotives due to many years of neglect and lack of appropriate spare parts. We have commenced the procurement of 10 new locomotives and 100 wagons.
We are also looking at procuring 300 saddles and repairing 300 wagons and nine locomotives. With these in hand, we project to grow cargo from 25,000 tonnes to 120,000 tonnes per month, even as this is still small compared to Kenya and Tanzania.
The facilities will contribute to enhanced capacity to move both imports and exports.
The biggest cost centre for us is fuel. If not managed well, we run a risk of incapacitation.
To improve fuel management, we have commenced the repair of our fuel storage facilities to close all existing gaps and reduce disruptions from fuel shortages.
We are also developing a master plan to guide the commercialization of URC’s real estate assets.
Benon M. Kajuna says that whereas URC still has a lot of challenges, there has been some good progress, especially in terms of investment. Photo / File
How is the passenger train service performing?
Greater Kampala suffers from extreme congestion, affecting productivity. In May 2024, the passenger train service was rehabilitated to extend service from Namave to Mukono, 26 kilometres from the city center.
Now, we serve 2,500 Ugandans daily between Kampala and Mukono, and the numbers are growing.
The only limitations we have are the facilities used. Currently, we only have five coaches, each with a capacity to transport 600 passengers. However, this is about to change.
Government secured financing under the East African Railway rehabilitation project to, among other things, procure new passenger facilities. Under the same project, the Portbell – Kampala – Kyengera lines will be upgraded to concrete sleepers.
With funding from the European Union, a feasibility study has been undertaken to introduce passenger services along the Kyengera – Bujuuko and Kyengera – Mukono sections.
We project to move between 200,000 and 250,000 passengers daily.
What are you doing about complaints on the quality of URC’s wagons?
The old locomotives, wagons, and coaches have indeed affected our service delivery. To remedy the challenges, we have commenced the procurement of new locomotives and wagons.
We also have plans to build a multi-purpose water vessel with a capacity of 1,500 tonnes of cargo to transport containers and other types of cargo.
What other key challenges is URC facing?
The high cost of fuel and lubricants, old rolling stock, the existing railway network is short and some of it in bad state – only 268 kilometres of the ideal 1,000, limited funding to run operations, expensive spare parts, encroachment, lack of a cargo tracking system, vandalism, high operating costs, skills and knowledge gaps among others.
On safety, do you have a plan to entirely mitigate train and road user accidents?
Accidents usually happen at level crossings and along the railway line. We are in the process of installing automated level crossing systems at all crossings to enhance safety. In addition to this, we are going to fence off all built-up areas along the railway line to keep away walkers and encroachers.
Our investigations, however, attribute majority of these accidents to failure to follow guidelines. For example, why would someone use the railway line as a walkway? Last week, a truck was hit by a train while it was parked on the line. This behaviour is unacceptable.
The Auditor General highlights URC as one of the worst-performing state enterprises. What is your plan to turn this around?
URC is highlighted as one of the worst-performing state enterprises by the Auditor General. How do you intend to turn around this performance?
Financial, yes, URC is registering losses due to the challenges earlier cited. However, regarding economic viability, URC offers the ability for businesses to transport both imports and exports at reduced costs, hence lowering the cost of production.
When this is done, the final consumer of those products is also charged fairly, which ultimately improves the quality of consumers’ lives.
Uganda’s journey to economic transformation requires a reliable, affordable, and efficient transport backbone.
Railways are no longer optional; it is an economic necessity. We are focused on delivering a modern, high-performing railway system that reduces the cost of doing business, supports job creation, and connects Uganda more efficiently to the region.
