Investors at Sino-Uganda Mbale Industrial Park have urged the government to consider extending a railway siding into the park and also establish a freight yard in bid to boost import and export trade.
A railway siding is a short branch line connected to the main railway track, designed to facilitate trade, among others.
The government is currently rehabilitating the Tororo-Gulu railway line (375km) at a cost of Shs200 billion, and its completion, according to the contractor, China Road and Bridge Corporation, is scheduled for February 2026.
The investors argue that the extension of the railway into the industrial park in Mbale will facilitate movement of imports such as raw materials and the export of finished products for various enterprises in the park.
‘The Ugandan government is currently upgrading the railway mainline from Mombasa Port into Uganda. We request the government to consider extending a railway siding into the park to enhance operational efficiency,’ Mr Laurent Zhang, the administration manager of the park, said.
Mr Zhang made the remarks on Tuesday while meeting government officials from Uganda Revenue Authority (URA) and Uganda People’s Defence Forces (UPDF).
Agencies inspect park
Mr Cassette Ignatius Wamundu, the manager of Intelligence at the tax body, led the URA delegation, while Brig Gen David Gonyi, UPDF Air Force Chief of Staff, led the officials from the army.
Mr Zhang added that the capacity of the park’s current 50MW electricity substation is nearing saturation, adding that it is insufficient to meet the power demands of existing enterprise expansion and new enterprises being established at the park.
‘We request the relevant government departments to expedite the approval and construction process for the planned 240MW substation project, providing a solid energy guarantee for the park’s sustainable development,’ he said.
Mr Moses Wanjala Owino, the manager of enforcement and border control eastern region, said URA is committed to facilitating the investors in the clearance of their imports such as raw materials, and clearing their exports.
Mr Owino said the traders in the country can now buy locally made items in line with the government policy of Buy Uganda Build Uganda (BUBU) from the factories within the country.
‘For instance, more than 50 items are being produced in this park and are quality products. So, we call upon the people who still cross the border to source some of these items here locally at a very low price,’ he said.
He said they will continue guarding the border against any illicit cross-border trade that impacts negatively on the local production.
‘When goods are being brought in illegally, it distorts the market, and the fact that some of them are not paying taxes, they tend to be cheap, and it affects the production capacity of those industries,” Mr Owino said.
The eastern Uganda-Kenya border stretches over 800 kilometres, presenting a vast expanse that is difficult to monitor effectively.
Smugglers exploit this vastness, taking advantage of porous border areas, informal crossing points, and remote regions to carry out their activities.
Brig Gen Gonyi said the biggest challenge facing BUBU policy is that Ugandans still believe goods from abroad are better than the ones produced locally.
‘And yet in the actual sense, from what we have seen, we have found that the products produced in the park are actually much better than the ones that are smuggled in from the neighbouring countries,’ the UPDF Air Force Chief of Staff, said.