Kenya – Uganda rail operator Rift Valley Railways (RVR) has begun an extensive renovation of its locomotive overhaul facility in Kampala at a cost of $284 million.

According to company officials, the cargo congestion issues at the Mombasa port is as a result of a lack of sufficient maintenance for locomotives and rolling stock.

Part of the funds will go to the Nalukolongo Railway Workshop in Kampala which will be receive a much needed renovation at a cost of $410 000 and is expected to be completed by December 2012. This will make locomotives and wagons more readily available for use.

The workshop is currently not operating at its full potential which is proven by the fact that it only rehabilitated 54 wagons, which is well below the target of 365.

“We have had a shaky start, with five years that for all intents and purposes were wasted. But RVR now has $284 million in the bank and there should be a marked difference within the next 12 months,” Group Chief Executive Brown Ondego said during the handover of the facility to civil contractor Roko Construction.

According to RVR general manager Geoffrey Busuulwa, the workshop increase the rate at which locomotives and wagons are repaired and brought back into service.

RVR has received $284 million from six development finance institutions that include the African Development Bank, International Finance Corporation, Dutch Development Bank and the Belgian Investment Company for Developing Countries.