By KT Reporter
The Gulu Logistics Hub, envisioned as a transformative trade facility for northern Uganda and its neighbouring countries, is operating below half its intended capacity.
During a workshop on “Promotion of Gulu Logistics Hub” at the hub site on Wednesday, the officials noted that despite substantial investments and strategic planning, the hub’s full potential remains untapped, mainly due to infrastructural setbacks.
Geoffrey Okaka, the Assistant Commissioner of Field Services at Uganda Revenue Authority, URA, revealed that the facility receives only 50 trucks of goods per month, yet it can handle 100 trucks daily.
Lino Criel Icila, the Secretary General of the Uganda Clearing Industry and Foreign Association, noted that a significant impediment to the GLH’s full functionality is the absence of cranes for loading and offloading goods from containers, as the verification bay, which is used for standard verification with other stakeholders, like the Bureau of Standards, the National Drug Authority, also for security concerns.
Icila argued that the most critical infrastructure that can sustain the hub and its construction should be fast-tracked is the railway line, as it will support the hub’s multimodal transport operations.
He said once in place, it is hoped the railway will help in the movement of containers directly from Uganda to either the DRC or South Sudan, decongest ports, and reduce the burden placed by heavy trucks on roads.
Icila suggested that when the hub starts operating at full capacity, it should have machines that do packaging and repackaging, processing, and standardisation for export, to support the bulky agricultural products produced in the region and the country at large.
Because of operating way below its capacity, Icila explained that it is not easy to determine how much revenue the hub generates in a month, as it is not a direct import zone.
Anna Nambooze, the Country Director of TradeMark East Africa, Uganda, and South Sudan country offices, stressed that the railway line is critical for the functionality of the hub because it would reduce the cost of transportation and the distance of transporting goods by road by 150 kilometres.
The GLH was designed to handle up to 60,000 containers annually, serving as a pivotal node for trade between Uganda, South Sudan, and the DRC. By providing facilities such as bonded warehouses, customs inspection areas, and container handling services, the hub aims to reduce transportation costs and improve efficiency for regional traders.
Maksudi Zizi, the Deputy Commissioner in charge of Trade Facilitation at the South Sudan Revenue Authority, expressed optimism about the hub’s potential to combat smuggling in her country if all infrastructure is in place.
“It is now a step towards combating smuggling and diversion of goods along the northern corridor, and it will also tighten the ties between the countries along the corridor,” Zizi said.
She is optimistic that the hub will be a game-changer because trade between Uganda and South Sudan is set to undergo a significant transformation following the launch of the hub.
“This hub will make the clearance of our cargo much easier. As the South Sudan Revenue Authority is still relying on support from Trade Mark and the East African Community, we are now going to have a wonderful partner and counterpart, Uganda, supporting and strengthening our ties through cooperation in various operations,” she added.
Bageya Waiswa, the Permanent Secretary of Ministry of Works and Transport, in a speech read by Simon Kagumire, the Principal Logistics Officer at the ministry, said the government had substantially completed the rehabilitation of 234 km of the main MGR line from Malaba to Kampala, and rehabilitation of the northern MGR line of approximately 382 km from Tororo to Gulu is ongoing.
He added that the government plans to construct approximately 1,700 km of the Standard Gauge Railway (SGR) that will be developed in phases, starting with the eastern route from Malaba to Kampala, 273 kilometres, including railway branch lines to major industrial facilities.
Other standard gauge railways to be developed include the northern line from Tororo to Gulu to Nimule, 465 km, with a spur from Gulu-Pakwach-Vurra 297 km.
“The feasibility studies for the northern, Western, and Southern SGR lines are ongoing, and the plan is to start construction of these lines before 2026,” he said.
The Gulu Logistics Hub is designed as a dry port with both rail and truck terminals. Construction commenced in May 2020.
The project was funded by the European Union together with the UK’s Department for International Development (DFID), through Trade Mark East Africa (TMEA) at 30 billion shillings.
URA started operating the logistics hub in January 2024 and gazetted it as a legal customs clearing station in June 2024-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
