Govt Moves to Replace 1992 Railway Law, Open Passenger Rail to Private Investment

Uganda's Ministry of Works and Transport is spearheading the development of a new railway law designed to modernize the sector by separating regulatory functions from operational responsibilities. This initiative aims to replace the outdated Uganda Railways Corporation (URC) Act of 1992, which currently allows the corporation to simultaneously regulate and operate railway services. The proposed legislation seeks to establish a clearer framework where the ministry would oversee regulation, while URC would focus exclusively on operations.

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We are reviewing this Act to make it a Uganda National Railways law, where we regulate Uganda Railways Corporation and the railway corporation remains only in operation.

Under the new legal structure, private investors would be permitted to engage in passenger rail services and operate railway workshops. However, cargo operations are slated to remain outside these private investment arrangements. Bindeeba Barbara Cynthia, Assistant Commissioner for Rail Transport Regulation and Safety at the Ministry of Works and Transport, explained that this separation is crucial for addressing existing gaps in the railway system. It is expected to enhance oversight of safety standards and regulatory compliance, moving Uganda's framework closer to international practices where regulation and operations are distinct.

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The corporation has been an operator and a regulator at the same time.

The proposed legislation has undergone stakeholder consultations and is currently being prepared for submission to the Cabinet. The ministry anticipates completing the Cabinet process by the end of October, with the aim of enacting the new law within the current financial year, pending further approval stages. This reform comes as Uganda Railways Corporation actively works to improve safety across its network, particularly following several incidents at railway crossings. Michael Lagara, URC's Acting Chief Operating Officer, noted the corporation's launch of a nationwide public awareness campaign on railway safety in response to these occurrences.

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We are ready to take it to Cabinet anytime. We think by the end of October we are done with Cabinet and move it for the final approval.