South Africa firm seeks URC partnership
CAPTION: Some of the products of Africa Jambo Group on display at a workshop recently. (File Photo)
By Our reporter
KAMPALA – Africa Jambo Group, a South Africa-based engineering firm, has expressed interest in partnering with Uganda Railways Corporation to refurbish the railway sector. Through its subsidiary, Magnitude Rail Engineering, the group is one of the firms rebuilding Tanzania’s railway network. It is the leading Tanzania-based railway engineering company specialized in design, manufacturing, modification, and rehabilitation of railway rolling stock.
With over 100 years of experience, Africa Jambo Group has requested a Public Private Partnership (PPP) with URC, the state-owned enterprise that manage, develope, and operate railway and marine services in Uganda.
URC was formed in 1977 after the breakup of the East African Railways Corporation. In 2006, URC was handed over to the Rift Valley Railways Consortium, but in 2017, the government terminated the deal due to poor performance, and URC resumed direct control in 2018.
“The Uganda Railways Corporation (URC) currently faces a severe freight capacity crisis, with roughly 70 percent of its national wagon fleet sidelined due to asset degradation, lack of roadworthiness, and legacy configurations,” reads a proposal addressed to the Board of Directors, URC and copied to the Minister of Works and Transport.
In a document seen by East African Vanguard on Friday October 16th 2026 tilted Strategic Public-Private Partnership (PPP) for Rolling Stock Modernization, Workshop Upgrading, and Local Capacity Building outlines a fast-tracked, highly cost-effective PPP.
“Magnitude Rail Engineering proposes to rehabilitate and convert URC’s dilapidated container and freight wagon fleet to Association of American Railroads (AAR) specifications. Instead of executing capital-intensive foreign procurements, this program will salvage the robust original structural steel skeleton frames (underframes) of sidelined wagons and completely rebuilding the superstructure,” it reads.
CAPTION: Some of the products of Africa Jambo Group on display at a workshop recently. (File Photo)
Adding, “Upgrade to pneumatic AAR air brakes, and install automatic AAR Knuckle Couplers. Crucially, this operations model avoids overseas outsourcing. By upgrading URC’s existing railway workshops with modern industrial machinery and embedding international rolling stock experts alongside URC’s artisan labour force, this project establishes a sustainable, localized manufacturing ecosystem in Uganda.”
It further reads, “We provide turnkey wagon solutions that enhance operational efficiency, increase freight capacity, and meet international safety and engineering standards across Tanzania and the SADC region. Magnitude Rail Engineering is committed to transforming rail transport across Africa by delivering innovative, reliable, and high-performance engineering solutions that drive economic growth and regional integration.”
According to the investor, rebuilding an existing steel frame skeleton saves approximately 40 percent to 50 percent of the cost of importing a completely brand-new container wagon.
“This proposed rehabilitation and conversion project offers a pragmatic, high-impact solution to URC’s rolling stock deficit. By merging the structural value of Uganda’s idle asset frames with modern AAR technologies and enhanced workshop capabilities, the nation can quickly restore a highly reliable, cost-efficient freight network. We welcome the opportunity to advance this initiative. We propose an initial technical workshop site visit and a joint inventory assessment within the next 30 days to finalize structural counts and frame viability metrics,” it further reads.
Should PPP materialise, the investor intends to use the first two months to audit existing skeletal frames and machinery installed in fouth months.
