With support from European Union and Department for International Development (DFID), TradeMark Africa together with Ministry of Works and Transport and Uganda Railways Cooperation are set to construct an $8.8m Trade Logistics Hub in Gulu, a move expected to stimulate trade in the region.

Officials told ChimpReports on Tuesday the main objective of the Hub is to contribute to reduced barriers to trade for both Northern Uganda and the neighbouring countries of South Sudan and the Democratic Republic of Congo

This Gulu Logistics Hub (GLH) will serve the trade corridors of Kampala – Gulu – Elegu/Nimule – Juba Trade Corridor; and Gulu – Pakwach Goli/Pader/Lira/Vurra DRC Trade Corridor.

The proposed developments include the container yard; railway siding; container freight station; warehousing complex; vehicle holding area and traffic flows; access roads, truck stop (parking); administration building; container light repair workshop; customs office; perimeter wall; security gate and guardhouse.

Trademark East Africa Acting Managing Director Damali Ssali said the hub will provide functions such as container and break-bulk, handling and storage facilities, space for stakeholders dealing with freight transport (freight forwarders, shippers and transport operators) and the provision of accompanying services such as customs inspections, tax payment, maintenance and repair, banking and information communication technology connections.

“The hub is expected to improve capacity of transport infrastructure in Northern Uganda to serve markets in South Sudan, Northern Uganda and parts of DRC; enhance efficient management of freight transport through Northern Uganda and improve capacity to handle containers and other cargo in Gulu,” said Ssali in a recent meeting with ChimpReports.

It also will provide for efficient humanitarian assistance; reduction in poverty; and increase in exports.

In recent years Uganda has played a vital role as a distribution hub for South Sudan and the Eastern Democratic Republic of Congo (DRC).

A World Bank study (Uganda Diagnostic Trade Integration Study) highlights that importers in South Sudan and DRC keep supplies in bonded facilities in Kampala, and bring them into either country as and when needed, but with assurances of shorter lead times.

As a result, Uganda has seen transit volumes grow, which has led to the emergence of a distribution industry especially in Jinja and Kampala.

Yet, the route to South Sudan and DRC passes through Northern Uganda, which is one of the country’s four administrative regions, with Gulu as its regional capital.

The region serves as a border between Uganda and South Sudan.

Exports 

The Northern Corridor trade route to Juba, through the border at Elegu, passes through Northern Uganda.

The region also borders parts of Eastern DRC with significant trade taking place through the border region of Arua.

Despite these large numbers, there is no distribution hub in the Northern Uganda.

This means truck drivers operating in neighbouring areas such as Kenya, DRC, South Sudan and Rwanda can always obtain commodities for export from one place.

Currently, truck drivers delivering imports to Uganda return with empty containers, undermining efforts to grow the country’s export sector.

For example a truck delivering cosmetics in Uganda from Mombasa can return to the coast with grain. However, the driver needs to pick the grain from one place which saves time.

The northern region depends on other distribution hubs established around Kampala and Jinja, or on goods moving directly to their destination markets through Northern Uganda.

Officials said the operationalisation of the Gulu Logistics Hub is therefore expected to address some of the issues that hamper distribution of cargo in Northern Uganda South Sudan, parts of DRC.

They also expect efficient management of freight transport through Northern Uganda and improved capacity to handle containers and other cargo in Gulu.

Source Chimp Reports

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.