Rift Valley Railways will invest $14 million in the revamped Tororo-Pakwach line as part of efforts to improve cargo transit times.

Part of this money will finance ballasting of the 500 kilometre long line, corrections to the track’s geometry and strengthening to increase its carrying capacity.

The line, first built in the 1960s, was designed for light trains and fell out of use more than 20 years ago as the government battled successive internal rebellions in northern Ugandan.

Commercial operations resumed on the line last week after a $2 million rehabilitation programme by RVR.

READ: RVR to reopen Tororo-Pakwach route

This came as Uganda prepared to construct an extension to the South Sudanese capital Juba under a major regional rail project that will see East Africa lay a new standard gauge track running from Mombasa to Kigali and Juba. It also comes as Gulu emerges as a new trans-shipment centre for South Sudan bound cargo.

RVR’s director for external affairs and strategic communications Cosma Gatere said that the company is in the process of concluding financing before starting to work on the second phase.

“What we are doing now (re-commissioning) is to operationalise the first phase, but as soon as we have a financial arrangement for phase two and three, work will commence. It is estimated that phase two will cost about $14 million but estimates for phase three will come as we go along,” Mr Gatere said.

RVR has also replaced 73 kilometre of railway between Mombasa and Nairobi at a cost of $19 million and rehabilitated nine major culverts in Uganda between Busembatia in Tororo and Jinja at a cost of $4.9 million.

RVR chairman Ngugi Kiuna said the rebuilding and re-commissioning of the railway line points to the potential of public-private partnerships in developing African solutions to address the continent’s infrastructure challenges.

“While it is important to capture and celebrate key milestones in our shared ambition to provide East Africa with an efficient rail transportation service, it is important to mention that we are only celebrating the first phase of a three-phase plan for this railway line,” Mr Kiuna said.

Speaking during the re-launch of operations in Gulu, President Yoweri Museveni said it was time the people of northern Uganda engaged in commercial agriculture due to the availability of cheaper alternative transport to the markets across the East African region.

“This railway is old; we are going to repair and improve it… But you must use this railway,” President Museveni said. “The easiest activity for you now is to engage in (commercial) agriculture so that each homestead has something to sell and improve their lives.”

The Tororo-Pakwach route is expected to boost commerce between Kenya, Uganda and South Sudan as well as eastern DR Congo, linking such towns as Tororo, Mbale, Kumi, Soroti, Lira, Gulu and Pakwach as traders will have a direct and cheaper alternative to transport their goods.

It is also expected to open up an alternative route to the Northern Corridor, connecting strategic trade routes with South Sudan, which is now a major trade and investment destination for partner states of the East African Community, as well as connect the country’s oil rich areas in the Albertine region easing the burden on the existing and yet to be constructed transport infrastructure required for the developing Uganda’s oil sector. 

READ: Why EA countries chose more costly route for standard gauge railway line

Uganda is anticipating starting commercial oil production of an estimated 3.5 billion barrels by 2017.

Mr Kiuna said that RVR has already purchased 20 locomotives from a US supplier and will be delivered in February, before doubling them by June 2014.

RVR, founded in 2006 was granted a 25-year mandate to operate railway services on 2,350 kilometres of track services in Kenya and Uganda.