This archive report was first published on 3 January 2022.
Located in the northern region of Uganda, Gulu was once a no-go area due to the Lord's Resistance Army rebels. However, the town has risen from the ashes and is now a key business hub between Uganda and South Sudan.
The Gulu Logistics Hub, a $29 million project funded by the European Union and the United Kingdom Foreign, Commonwealth and Development Office, is set to revolutionize trade in the region. The hub aims to lower transport costs and trade barriers faced by Ugandan traders who export goods to South Sudan and the Democratic Republic of Congo.
Ugandan transporters who ply the Gulu-Juba route are optimistic that the logistics hub will increase their profits due to a significant reduction in the distance and time their trucks spend on the road. 'This logistics hub will be a huge boost to my business as it will now be possible to transport goods four times a week instead of spending three weeks transporting one consignment from Mombasa to Juba,' said Amos Mugabi, a Kampala businessman who owns trucks that transport goods to South Sudan.
The hub, being implemented by TradeMark East Africa, is expected to be operational in 2022. The first phase of the construction of the hub is 100 percent complete, with the exception of a two-kilometre access road that connects the hub to the Gulu-Juba road. The Uganda National Roads Authority is yet to compensate the land owners for the works to commence.
Once operational, the Gulu Logistics Hub is expected to reduce transport costs per tonne of containerized cargo by an average of 20 percent while increasing cargo trucks' round trip time by an estimated 30 percent. The hub has the capacity to handle 60,000 containers annually, with the first phase handling 20,000 containers and the second phase handling 40,000 containers.
The new facility will provide container and break-bulk, handling and storage facilities, including bonded and non-bonded warehouses, as well as provide space for stakeholders dealing with freight transport. The hub will also provide accompanying services such as customs inspections, tax payment, maintenance and repair, as well as banking and information communication technology connections.
