East African Business Week

DAR ES SALAAM, TANZANIA - Presidents of Tanzania and Uganda have agreed to fast track the process of constructing the long awaited railway from Tanga to Kampala via Musoma port on Lake Victoria.
President Kaguta Yoweri of Uganda and Jakaya Kikwete early recently met in Dar Salaam over the construction of the Uganda-dedicated railway, they affirmed the process must be speeded up to ease transport of exports and imports of landlocked Uganda.
The Heads of State agreed to immediately form a ministerial task force comprising ministers of Transport, Finance and Foreign Affairs to find ways to speed up the construction and funding of the US$2.7 billion railway and ports project.
A statement issued by the Directorate of Presidential Communications said the two countries reached the decision at a one-day meeting between the Presidents in dare s Salaam.
The two countries have also agreed to expand the handling capacities of Tanga and Musoma ports in Tanzania, and build a new port in Uganda other than Port Bell to serve the new railway line. This railway will be dedicated to Uganda and by extension, to Southern Sudan and serve as the beginning of linking West and Africa from Uganda by railway.
The construction of this railway be will the fulfillment of the wishes of Tanzania's founder, the late Julius Nyerere, who wished to link Uganda directly to the Indian Ocean for ease of exports and imports of the latter. The railway will also open up the third gateway for Ugandan goods to the sea. Uganda's other alternative are the Mombasa-Kampala railway and the Dar-Mwanza to Kampala, also known as the Central Corridor.
Although the railway project was conceived during first phase Government, it's implementation was held up for various reasons and challenges that included finding funds for the project.
Tanga Port, the second biggest in Tanzania after Dar es Salaam, it currently has capacity to handle 500,000 tonnes annually of various cargoes, but utilizes only 76.5 capacity.
It is located on north eastern Indian Ocean coast close to the Tanzania/ Kenya border.
Most of the volume of goods through Tanga port, are imports which include liquid bulk and break bulk cargo, chemicals, machinery and vehicles.