Uganda Railways Corporation [URC] has re-entered the transportation of coffee for export after an eight-year absence, with the first consignment leaving Kampala for the Port of Mombasa this week in a move officials say could cut logistics costs for farmers and exporters while easing pressure on highways.
The last train carrying Ugandan coffee to Mombasa ran in 2018. Since then, all export consignments have moved by road through the Northern Corridor. That changed on Tuesday when URC dispatched a block train of 29 containers loaded with coffee beans destined for international buyers.
According to URC spokesperson Mr Linnon Ssengendo, the consignment comprised 28 twenty-foot containers and one 40-foot container, with a total cargo weight of 606.60 tonnes.
Had the exporter chosen road transport, the same volume would have required about 17 heavy-duty trucks, assuming an average payload of 36 tonnes per truck.
Managing Director Benon Kajuna described the movement as a test case and a signal of intent.
‘This was the first train. We are pursuing other exporters. This successful trip is an indication that we are back and can move the cargo,’ he said.
The financial difference was stark. At prevailing road rates of about $2,900 (Shs10.4m) for a 20-foot container and $3,300 (Shs11.8m) for a 40-foot container, moving the consignment by truck would have cost an estimated $84,500 (Shs304m).
By rail, URC charged $735 (Shs2.6m) per 20-foot container and $990 (Shs3.4m) for the 40-foot container from Uganda to Mombasa. That brought the total rail freight cost to $21,570 (Shs77.6m), calculated as $735 multiplied by 28 plus $990 for the single 40-foot unit.
The saving of more than $62,000 (Shs223.4m) on a single shipment highlights why exporters have long pushed for a revival of rail.
Beyond cost, URC argues that rail consolidates cargo into one movement, reduces road congestion along the Kampala-Malaba-Mombasa highway, lowers carbon emissions per tonne-kilometre, and minimises risks associated with multiple truck trips, such as accidents, delays at weighbridges, and pilferage.
‘This is a good development in terms of diversifying our cargo portfolio, while also making Ugandan exports more competitive and contributing to economic development,’ the corporation said in a statement.
The return to transporting coffee comes at a time when Uganda’s coffee sector is under pressure to deliver higher volumes more efficiently to remain competitive in a global market that is increasingly sensitive to both price and sustainability credentials.
Uganda’s coffee exports and why logistics matter
Coffee remains Uganda’s leading agricultural export and one of its top foreign exchange earners. The country primarily produces two varieties. Robusta, which grows in the lowland districts of central, western, and eastern Uganda, accounts for the bulk of output. Arabica is grown in the highland areas of Mt Elgon, Rwenzori, and southwestern Uganda and commands premium prices.
Over the last decade, the government and industry have targeted production of 20 million 60-kilogramme bags by 2035, up from about six to seven million bags in recent years.
Coffee earnings fluctuate with global prices and weather, but the crop consistently ranks among Uganda’s top three export commodities alongside gold and oil-related products. Key destinations include Italy, Germany, Sudan, Spain, the United States, and increasingly markets in the Middle East and Asia. Most of Uganda’s coffee leaves the country through Mombasa, with a smaller portion moving south through Dar es Salaam.
That dependence on the Northern Corridor road has been a persistent challenge. Trucking is expensive, and the cost is passed down the value chain to farmers. Delays at the Malaba and Busia border points, fuel price volatility, and road maintenance also add uncertainty. For a bulky, low-margin commodity like green coffee, transport can make the difference between profit and loss.
This is why the revival of rail is being closely watched by exporters, cooperatives, and development partners.
URC’s re-entry does not mean an immediate shift of all coffee exports to rail. The network still faces capacity constraints, last-mile connectivity challenges, and the need to align schedules with port operations. The corporation says it is now engaging other exporters to build regular block trains and that the tariff structure will be reviewed to remain competitive with road transport.