Construction of Uganda’s Dry Inland Port Hits Snag

September 28, 2013 3:46 pm0 comments by:
Heavy trucks parked at the proposed Malaba inland dry port in Malaba border

Heavy trucks parked at the proposed Malaba inland dry port in Malaba border

Kampala-Plans by Uganda, to have an inland dry port, have been ruined by numerous conflicts.
The Government of Uganda had planned to setup an inland dry port, in the eastern border town, of Malaba to ease the importation of goods.
Construction of the port was commissioned by President Yoweeri Kaguta Museveni in 2010 and was to be completed by the end of 2011.
Great Lakes Ports Limited the company which was to undertake the US$5 billion venture had stated that the port would enable goods that usually take 15 days between Mombasa and Malaba to arrive in only four days.
But the port which was to be established hardly a kilometer away from the Malaba border post soon ran into trouble with Uganda Revenue Authority which had also spent US$14m on setting up a 24-hour customs point.
Uganda Revenue Authority argued that opening up an inland port would cause additional costs for imports and create a monopoly which is disadvantageous to the country.
The final blow to the project is a high court injunction.
The injunction issued by Mbale high court, stems from a suit filed by a businessman who had sold the 250 acre piece of land to Great Lakes Port Authority.
The businessman contends in the suit that he was allegedly coerced by Great Lakes Port Limited to sell his land below the market price.
Both parties are currently battling the case something that has made the project to stall for close to four years now.
The project site, in Malaba is overgrown with grass and a small section of it is now being used as a park for heavy vehicles.
The idea of an inland dry port for Uganda has been around for over a decade. Initially it was mooted as the Kampala Inland Dry Port but did not materialize in 2004 after government failed to raise the US$10 to US$15 million for it.
Kenya has Inland dry ports in Eldoret, Kisumu and Nairobi.

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