Document of

The Worlcl Bank

FOR OFFICIAL USE ONLY

Report No. 4429-UG

UGANDA

TRANSPORT SECTOR MEMORANDUM

December 21. 1983

Eastern Africa Projects DepartmentTransportation Division I

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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UGANDA

TRANSPORT SECTOR MEMORANDUM

CURRENCY EQUIVALENTS

Currency Unit = Ugandan Shilling (USh)

US$1.00 = USh 100.0 (First Window)

US$1.00 = USh 250.0 (Second Window)

On August 23, 1982, the Government introduced a dual exchange rate coupledwith a 5% devaluation of the official (Window One) exchange rate. Theexchange rate in the Second Window is market-determined through a weeklyauction and subject to wide fluctuations; it has fluctuated from USh 300 tothe Dollar in August 1982 to USh 240 to the Dollar in January 1983, andcurrently starts at USH280 to the (dollar. Conversions in the TransportSector Memorandum have been made at: the First Window rate, which isapplicable to all external assistance projects.

ABBREVIATIONS

EAA - East African Airline!sEAC - East African CommunityEAR - East African Railway CorporationKR - Kenya RailwaysTCAO - International Civil Aviation Organization

MOW - Ministry of WorksPED - Ministry of Planning and Economic DevelopmentPTC - People's Transport CompanyUAC - Uganda Airlines CorporationURC - Uganda Railway Corporation-TC - Uganda Transport CompanyUCTU - Uganda Cooperative Transport Union

Fiscal Year

July 1 - June 30

UGANDA

TRANSPORT SECTOR MEMORANDUM

Table of Contents

Page No.:

Summary and Conclusions (i)

CEAPTER I

Economic DeveloDment and the Transport Sector ............. ...... 1

- Introduction Setos................................... 1- Productive Sectors ....... .............................. - Transport Flows ...................................... 2- Transport and Energy . ............................... . 3- Landlocked Position of Uganda ........ *............... 4- Transit Traffic .................. ........................ 4

C-HAPTER II

Transport Facilities .......... ...... . ....... ......... 5

A. The Road Subsector ................ . . .. . .o...o. . 5- Road Transport Industry .... , ......... ..... ........ 7- Transport Regulation .... ................ o.. . . . . . e. .. . . . 8- Freight Transport ...... ...... . ...... ...... .,. 8- Passenger Transport ...... ...... .. .. .. ... . 9- Railway Transport ..................... . ....... .. . 10

i) Organization .................... , ............... 10ii) Facilities .......... ...0.0...... ..O 4 .............. ...... 11iii) Traffic ............ .. , 12iv) Future Needs and Assistance ... o.....*.......... 13

B. Water and Air Transport ....... .................. 14i) Water Transport ......................... . . . 14

ii) Air Transport ...... .... .. ......... , . . 15

CHAPTER III

A. Institutional Structure for the Sector ... ........ 17B. Transport Policy and Planning ............ ....... 18C. Investment Plan ....................... . 20

This report was written by Mr. Le Blanc, based on visits to Uganda duringMay/June and September 1982, and April 1983 and updated by Mr. B. Bostrom

after a visit to Uganda in October 1983.

Table of contents (continued) - 2 -

CHAPTER IV Page No.:

Problems and Recommendations , ......... 21

A. Lack of Qualified Manpower ............. 21B. Low Level of Salaries .................................e 21C. Need to Improve the Transport Information System 22D. Transport Sector Management ............................. 22E. Need to Concentrate Future Investment in Rehabilitation

and Maintenance of Infrastructure and Equipment: .23F. Need for Foreign Exchange to Purchase Spare Parts. 23G. Financial Management of the Sector .. ............I ........ 24R. Coordination with Kenya ................................. 24I. Summary of Recommendations ................... .......... 25

ANNEX I - International Transport Routes .............. ........ 27

ANNEX II - Traffic ................ . .............................. 28

ANNEX III - Administration and Staffing 29

(i) Administration .................... , .... . 29(ii) Staffing ................... ...... ...... 29

ANNEX IV - Past Bank Group Assistance. 31

ANNEX V - Tables 1-11 ................................ 32-42

CHART: Organization of the Ministry of Works

Maps: IBRD 16719IBRD 16790IBRD 16792IBRD 17320

(i)

Summary and Conclusions

i) This memorandum is the first attempt at an overall review by theBank Group of the transport sector in Uganda in over twelve years. Itsmain objective is to take stock of the current situation, to identify andrecommend solutions to the main problems faced by the sector, and topropose short and long term strategies to facilitate the recuperation oftransportation in Uganda. The report is based on the findings anddiscussions of four missions which visited the country in 1982 and early1983. The analysis and content of the TSM is, however, limited by thepaucity of the data available and as a result, the perspective has had tobe more qualitative than quantitative.

ii) Uganda's principal resource is agriculture, from which it derivesmore than 90% of its foreign exchange. The decline of this sector has hada significant impact on the overall economy, including transport, sinceagriculture contributes to over one half of the gross domestic product.Industrial production also shows a negative growth since 1972 andproduction levels were only a fraction of earlier (1966-74) levels.Industrial value added in 1980 represented only 40% of its peak 1972 leveland accounted for less than 5% of total GDP. Those industries which areoperating are doing so at very depressed capacity levels.

iii) Coffee, the most important cash crop, is grown in the fertilecrescent around Lake Victoria. A network of radial roads leading intoKampala has developed over the years and these are inter-connected withfeeder roads such that the road coverage is good with no major gapsexisting. The rail system also provides adequate internal service and ispotentially the most economic and efficient system to handle import/exporttraffic.

iv) The transport system is now in disarray following a decade ofneglect and lack of proper maintenance. The Government has accorded therehabilitation of the transport sector a very high priority along withagriculture and industry. Uganda also serves as a major transit countryfor goods destined to and from Burundi, Rwanda, eastern Zaire and southernSudan and the disruptions which have occured during the 1970's and follow-ing the liberation war have had serious economic repercussions on theseneighbouring countries as well. The speed at which this rehabilitationwill take place is, however, greatly influenced by the Government's abilityto mobilize resources. It also depends on rebuilding and staffing properlythe institutional and administrative structures of Government in the sectorand in formulating and implementing a strategy to reinstate at minimum costin time and resources the once adequate transport system.

v) Wnile Government has stated explicitly that its policy is to re-habilitate rail transport and maintain and rehabilitate its road network,it has not clearly defined how to achieve these goals. There is noofficial transport policy on which to base decision making. In addition,because of severe staff shortages, the Ministries of Transport and Planningand Economic Development have not been able to coordinate the investmentsrequired to rehabilitate the sector.

(ii)

vi) The major problems and recommendations whicL are discussed in thepaper are as follows:

a) the lack of sufficient qualified transport staff;

b) the low level of salaries which affect motivation of Govern-ment workers;

c) the need to improve the transport information system;

d) the deficiencies of teansport sector management;

e) the need to concentrate future investments on rehabilitationand maintenance of infrastructure and equipment;

f) the need for foreign exchange to purchase spare parts;

g) the lack of proper financial discipline in transport para-statals; and

h) the need to improve the level of transport coordination withKenya.

vii) The paper is divided into four chapters. The first chapter dealswith economic development and the transport sector. I.t looks at the roleof transportation in Uganda and the shortcomings of the sector.. The secondchapter examines transport facilitie's by mode and gives some indica-tion ofoverall performance. The third chapter focusses on transport sec- tormanagement and coordination. It looks at the institutional structure ofthe sector and indentifies the probLems which affect both the short.andlong-term outlook of the sector. It also deals with transport policy,planning and coordination . Chapter four is a summary of the problems andrecommendations-and how, in the Bank-Group's opinion, they should betackled.

UGANDA

TRANSPORT SECTOR MEMORANDUM

Chapter I

Economic Development and the Transport Sector

Introduction

1.1 Uganda is a landlocked country in the upper basin of the Nileastride the Equator, bounded by the Sudan on the north, Kenya on the east,Tanzania, Lake Victoria and Rwanda on the south and Zaire on the west. Thetotal area of the country is 236,000 km2, about the size of the UnitedKingdom, of which about one seventh is swamps and lakes, and most of theremainder is a plateau about 1,700 Di above sea level. Neither its temper-ate climate nor its topography pose major impediment to transport. Thepopulation estimated at 12.6 million in 1980 is growing at a rate of about2.6% per annum. Population density averages 54 persons per km2.

1.2 During the last decade the economy of the Republic of Uganda hasseen a reversal from growth to decline with rapid deterioration under theAmin regime (1972-1979) and the subsequent liberation war. The result isthat real GDP in 1982 was only two-thirds of the 1971 level and per capitaincome fell by 48% in real terms over the same period, to US$240. Only inthe last two years has economic activity begun to gradually re-establishitself. An immense task of moral, institutional and physicalreconstruction, however, still lies ahead.

Productive Sectors

1.3 Uganda is essentially an agricultural economy and the agricul-tural sector contributes 75 percent of GDP, 95 percent of the country's ex-ports and provides a livelihood to about 93 percent of the population. Thecoffee is grown in an area radiating about 200 km around Kampala and alongthe fertile crescent bordering Lake Victoria (see map IBRD 16790). Cof-fee's share in export receipts increased from 53 percent in 1971 to over 95percent in 1981, despite a decline in official coffee exports from 191,000tons in 1970 to 174,000 tons in 1982. The coffee growing areas areadequately served by roads and the major flows are all towards the centralprocessing plant in Kampala from where exports are shipped by rail or roadto the port of Mombasa. Tea exports; from areas in the west (IBRD Map16792) only amounted to 2400 tons in 1982.

1.4 Cotton, the other major export crop, experienced a dramatic de-cline in output from 413,000 bales of lint in 1969/70 to less than 22,500bales in 1980/81. Cotton growing areas are shown on map IBRD 16719 and arewell served by both road and rail systems.

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1.5 The production of foodcrops for domestic consumption is the mostimportant activity of the agricutural sector and in 1980 amounted to about10.3 million tons increasing to 13.5 million tons in 1982. While in thepast, food production in Uganda was primarily for subsistence and localmarket sales, there has been in recent years a development ofinter-regional trade in foodcrops and unofficial exports to neighbouringcountries as a result of the 1977 deregulation of producer prices forfood. As Kampala and other major urban areas increase in size, thedistance travelled to bring foodcrops to these markets is increasing.Since the above mentioned production figures represent an average of onlyabout 50% of the peak production years, and in view of the increasingdemand for transport to move these crops to markets, it is obvious that thepresent inadequate transport system will have to be improved if it is toaccommodate future increasing demand.

1.6 Regarding the transport of mineral products, in the early 1970'scopper exports from the mine at Kasese in western Uganda reached a peak of17,000 tons. The mine is at present inactive but scheduled to open.again. The impact of resumption of its operations on the transport sectorwould in any case not be significant.

Transport Flows

1.7 The transport system in Uganda is basically a hub and spoke withKampala being the hub from which radiates a main road linking the Kenyaborder to the Rwanda border around Lake Victoria. The road network is welldeveloped with adequate links between the routes leading into and out ofKampala at the centre (see map IBRD 17320). The railway network consistsof two main lines from west to east, one in the southern part of thecountry linking the copper mine at Kasese to Tororo, via Kampala, and theother linking the northwestern part of the country from Pakwach, aroundLake Kyoga and to Tororo.

1.8 The railway system was mainly geared to handle import-exporttraffic, which in 1981 amounted for about 234,000 tons. Coffee accountedfor about 42% of this traffic. The line from Kasese to Kampala carrieslittle traffic since the closure of the copper mine in 1975. Studies arebeing carried out on the future viability of the mine but even if it didresume production, the total output would not likely exceed the peakproduction level of 16,800 tons ach:ieved in 1971. The line from Pakwach toTororo was built to serve the cottoln traffic but traffic has steadilydeclined since 1973. The potential for increasing traffic on this line islimited in the short term but as coc:ton production is rehabilitated, theline could eventually carry about 55,000 tons annually.

1.9 The road network, currentLy carries the vast majority (about 98%)of the total freight and passenger i:raffic in Uganda. There is awell-developed trunk road network with an extensive system of rural andfeeder roads feeding into it. Cotton, coffee and tea growing areas are allwell served by the road system. It is well known that in the late 1960's,Uganda had one of the best developed road systems in sub-saharan Africa.

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The main problem which exists today is the poor condition of the roads dueto lack of maintenance over the past ten years which has greatly reducedthe capacity of the system. This problem of lack of maintenance is alsogeneralized throughout the whole transport system and will require aconcerted effort by Government if its rehabilitation is to be coordinatedwith the rehabilitation of other secitors, particularly agriculture andindustry.

1.10 While the road network itself is without major gaps, the vehiclefleet which was severely decimated following the liberation war is not ableto cope with the transport demand particularly in the case of passengertransport. This is especially true of urban passenger transport where thelack of available buses and the high tariffs relative to salaries hasforced people to turn to other means of transport, including bicycles andwalking long distances to get to work. The same is true of inter-urbantransport where the high operating costs and low number of buses operatingare restricting those wishing to avail themselves of transport.

1.11 Finally, air transport plays an important if limited role in theeconomic development of Uganda. It is mainly for the transport ofpassengers and for certain high valu,e commodities or spare parts which cansupport the high transport costs. While Uganda was an important touristattraction in the late 1960's, the events of the 1970's have virtuallyeliminated this factor. Until it is reestablished, air transport willcontinue playing an important but limnited role.

Transport and Energy

1.12 Petroleum products account for about 18% of the value of importsin Uganda but consume 30% of the country's export earnings. Whiletransport accounts for only 2.5% of total energy use in the country, itconsumes about 22% of the commercial energy in the form of petroleumproducts1 /. In 1982, the country imported 93,400 tons of petroleumproducts for highway use and about 4,000 tons of fuel oil for the railway.Current prices of gasoline and auto diesel are US$1.36 and US$0.82 perlitre respectively. At these levels, the retail prices reflect the full

cost of importation and marketing and also provide a significantcontribution to Government revenues in the form of import and sales taxes.Any savings as a result of better maintained equipment, vehicles and

rolling stock and roadways will help reduce the large foreign exchangeexpenditures for imported petroleum products. A 5% improvement in theefficiency of vehicles and railway locomotives would result in a saving of

about US$1.9 million annually of foreign exchange. The improvement in theroad network which provides the majority of the domestic transport need ofboth freight and passengers will result in additional savings to the

economy.

1/ Uganda - Energy Assessment Report, IBRD April 12, 1983 (Yellow Cover).

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Landlocked Position of Uganda

1.13 Because of its position as a landlocked country and thedifficulties with the rail route through Kenya, Uganda is attempting toimprove an alternate rail-lake route through Tanzania to the Indian oceanvia Lake Victoria. This is having the effect of diverting already limitedresources in order to ensure that an alternate route is available for itsexports. While it was possible, under the East Africain Community, tooperate such a route as part of an integrated transport system, Uganda isnow trying to put in place an operating system before the actualcoordination mechanisms, such as customs procedures and operationalagreements, have been established. This has proven very difficult butconsiderable progress has been made recently. (See Annex I "InternationalTransit Routes").

Transit Traffic

1.14 Land transport also plays an important role for Uganda as atransit country. It is on the major route which links; the port of Mombasain Kenya to Rwanda, Burundi, northeastern Zaire and southern Sudan (MapIBRD 17320). The length of the route within Uganda serving these othercountries exceeds 800 km and the choice of mode has a very dramatic effecton the cost of transport to the neighbouring countries. Before the breakupof the East African Community, most of the transport from the Indian Oceanwas by rail to either Kampala or Kasese for furtherance by road. Now, allthis transit traffic, estimated at about 300,000 tons annually, movesalmost entirely by road transport at a much higher cost both in terms ofactual vehicular transport costs and damage inflicted on the road networkof all countries involved including Uganda. A Bank study (A Report on theInternational Transportation Bottlenecks Affecting Rwanda and BurundiVols. I & II) completed in 1980, assessed alternative routes for Rwanda andBurundi traffic but gaps existed at that time on the impact to Uganda ofmodal choice decisions because of lack of data. The-main recommendation ofthe report that improvement of existing routes rather than investment innew ones would have a higher priority is still valid. The costs to Ugandaand its neighbours of restoring the railway system are much less than thecost of rehabilitation and operation of the road system. The problem isone of coordination of railway operations between Kenya and Uganda and willhave to be addressed as a priority Lssue. (See Chapter IV, Section H).

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CHAPTER II

Transport Facilities

2.1 Apart from the river Nile which cuts the country from South toNorth, and Lake Kyoga with its extensive papyrus swamps which preventsdirect access between the populous fringes of Lake Victoria and the lessdeveloped northern part of the country, there are few physical barriers tocommunications within Uganda (see Map IBRD 17320). Kampala, the capitaland major commercial city, is the hub of the transport system from whichroads and railway lines radiate throughout the country. Since Uganda is alandlocked country, some 1,200 km from the nearest coast, and is heavilydependent on foreign trade, the road and rail links through Kenya to theport of Mombassa are vital components of its transport system.

2.2 In the late 1960's and early 1970's, Uganda had a broad-based andreasonably well developed transport system. The road network was commonlyregarded as one of the best in Sub-Saharan Africa, and through the EastAfrican Community the country shared access to air, water and railtransport systems. Despite its position as a landlocked country, transportfacilities were relatively good. However, during the 1970's, theydeteriorated principally because of four reasons. Firstly, during the Aminregime (1972-1979), a large contingent of qualified personnel was eitherforced out or left the country voluntarily and as a result the transportsector and other productive sectors were left seriously understaffed.Secondly, with the ensuing economic decline, fewer and fewer resources wereavailable for maintenance of infrastructure, particularly roads. Thirdly,the sudden breakup of the East African Community in 1977 had a drasticimpact by significantly reducing availability to Uganda of jointly ownedequipment and disrupting operations. Finally, the domestic transportsystem was badly damaged during the liberation war and the subsequentlooting. Vehicle fleets were destroyed or removed from the country andfacilities destroyed or looted.

2.3 Consequently, the transport sector is currently depleted in manyways. Its rehabilitation will be vital to the successful revitalization ofother sectors and the economy as a whole.

A. The Road Subsector

2.4 The road network in Uganda consists of about 2,000 km of pavedroads and 25,500 km of unpaved roads. It can best be described as asemi-circle with Kampala as its centre and with the circtumference broadlyfollowing the international boundaries of the country. This system issupported by a network of main roads radiating from Kampala towards thecircumference interconnected with secondary and tertiary roads. TheMinistry of Works is responsible for maintaining about 7,500 km of bothpaved and unpaved roads; the remainder of the network (about 20,000 km) isthe responsibility of the Ministry of Local Government or town councils.

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Those roads maintained by the. Minist:ry of Works (MOW's administration andstaffing are described in Annex III) are classified as either primary,secondary or tertiary depending on their strategic importance or trafficvolumes. For the purpose of road maintenance administration, the countryis split into four areas: Kampala, Mbale, Gulu and Fort Portal. The majorcorridor is the strategic route which originates at the Kenya border andfollows the outline of Lake Victoria, through Kampala and on to the Rwandaborder. A breakdown of the lengths of paved and unpavied roads by areas isfound in Annex VTable 1. The network is adequate insofar as coverage isconcerned but has deteriorated due to poor maintenance over the pastdecade.

2.5 Poor road maintenance is one of the major problems in the roadsubsector. Since 1972 only about 120 km or 6% of the paved trunk roadshave been resealed. On strategic routes, particularly those which servetransit traffic to and from neighboring countries, traffic has been highwith heavy loads causing a sharp deterioration of the network. Because ofa pronounced drop in traffic volumes in recent years, secondary roads havefared better and have not deteriorat:ed as much. However, the war andsubsequent looting have severely restricted the Ministry of Workscapabilities. Extensive infrastructural and institutional rebuilding isrecuired to reinstate the largely acdequate system which Uganda oncepossessed.

2.6 Road maintenance is hampered by a number of factors of which themost critical are: (i) the insufficient number of properly trained staff;(ii) the lack of serviceable equipment, (iii) the low salary scale forGovernment employees; and (iv) shortages of foreign exchange for imports offuel, bitumen, spare parts and equipment. The need for trained personnelis critically important to the maintenance function. During the 1970'smany of Uganda's qualified people left the country or were forced to lookfor more remunerative activities outside the Government:. As a result, theMinistry of Works has many vacancies at all levels and will need toreorganize its training effort and depend on technical assistance in theshort to medium term to improve its production levels. The MOW's trainingcentre at Kyambogo has been neglected and needs rehabi:Litation andtechnical assistance to help it resume training of road maintenancepersonnel. This component will be included in the Association's proposedThird Highway Project. Because of the shortages of staff at all levels,management has suffered and the organization of the MOW lacks direction tocarry out its mandate. Expatriates will be required in staff positions toassist the Ministry while Ugandans are recruited and trained.

2.7 The condition of the road network is also afi-ected by the lack ofadequate traffic control regulations. While the Traff:ic and Road SafetyAct of 1970 gives the Minister of Transport powers to make regulationsgoverning vehicle weight, dimensions, inspections, licensing and safety,many of these regulations were never made. This is likely due to the factthat up until the breakup of the East African Community in 1977, thecontrol of road vehicles and their size was not considered a problem sincemost heavy traffic moved by rail. However, the situatiLon has changeddramatically with the diversion of large volumes of traffic to road

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transport. Overloading of trucks has a detrimentral effect, especially onthe major transit routes where traffic is heaviest. The Ministry ofTransport in conjunction with the Ministry of Works is now preparing afterconsultation with neighbouring countries regulations governing vehiclesize, weight (10 tons axle-loads) dimensions and road safety.

2.8 In the past, Uganda had a very well organized system of labor in-tensive road maintenance. Government would like to return to these provenmethods to generate employment and help reconstruct the road networkbut the lack of tools, transport and, more critically, the low salaries,prevent an early resumption of this type of maintenance. As an example ofthe seriousness of the salary constraint the monthly wage rate for alabourer is 900 Uganda Shillings while matoke (large bananas, the localstaple food) costs USh 1,000 and will only feed a family of four for threedays. The issue of salaries will therefore have a major impact on anyproposed maintenance program and will require financing of supplementseither in cash or food rations to ensure a proper supply of manpower. Thismust be an element of any program aiming at a serious reestablishment ofthe once efficient maintenance organization. The overall salary issue,however, can only be tackled in the medium term within the overallgovernment administrative policy given the overall budget limitations.

2.9 In addition to the question of vacancies and salaries, the short-age of funds is a serious impediment to the proper road maintenance. Dur-ing the 1981/82 fiscal year, the MOW's total budget amounted to aboutUS$5.4 million equivalent of which 70% or US$3.7 million was spent on roadmaintenance. This represents only about US$525 per km of which a substan-tial part was taken up by salaries (about US$1,000 per km is generallyconsidered sufficient on a networkwide basis). This situation iscompounded by an acute shortage of foreign exchange. While the Ministry'sbudget included an amount of US$337,000 for the purchase of spare parts,only 20% of this was actually spent because of foreign exchange shortages.The foreign exchange situation is not expected to sufficiently improve inthe next few years to allow the Ministry to purchase all the needed spareparts and supplies for its road maintenance effort. External assistance toGovernment for the road subsector should provide some of the foreignexchange requirements also for road maintenance as proposed in the revisedrecovery program.

Road Transport Industry

2.10 While there once existed a flourishing road transport industry inUganda, the substantially reduced economic activity, the decimation of thevehicle fleet following the liberation war and the high cost of transporthave severely teduced the number and size of carriers. After theliberation war, the Government purchased about 600 trucks which wereprimarily intended to move coffee exports. Many of these vehicles weresold to transport co-operatives who are involved in the movement of coffee

from the farms to the central processing plant in Kampala. While coffee istransported as a priority by these co-ops, the vehicles are also used on afor-hire basis for other types of cargo as well.

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2.11 Because of a significant reduction in the number of roadtransport vehicles imported in the 1970's along with an exodus of vehiclesduring the liberation war, the fleet is very depleted (Annex V, Table 5)and its condition is significantly deteriorated. The reductions in vehiclenumbers was most severe for cars and heavy commercial vehicles. From 1971to 1982, the number of cars fell from 23,771 to 9,821, while heavy trucksdropped in numbers from 6,795 to 3,529 during the same period.This,combined with very high fuel costs, has had a dramatic effect on trafficlevels in the country (see Annex II). The Commonwealth Report of June 1979on the Rehabilitatibn of the Ugandan Economy estimated that about 2,500 newtrucks would have to be imported to revitalize the road transportindustry. Similarly, about 500 additional buses would be required toprovide sufficient capacity for passenger transport. However, only onequarter of the number of trucks and very few buses have since beenimported. The need has been tempered somewhat, though, by the slower thanexpected recovery of the economy.

Transport Regulation

2.12 The Road Traffic and Safety Act of 1970 is a broad and allencompassing piece of legislation which was intended to provide theframework by which the Government could regulate the road transportindustry from an operational, economic and safety point of view. The powerto make regulations has rarely been exercised and freight transport remainsessentially unregulated. The Ministry of Transport publishes a tariff butit is intended only as a guideline for carriers. The transport ofpassengers is more strictly regulated but not well enforced both in termsof routes and tariffs. Passenger carriers must apply for a route licenseand a hearing is held to determine if the new entrant should be permittedto provide service. The transport licensing board is the body whichdecides on the applications and the rates are set by the Ministry ofTransport. Technical assistance from ILO has included an analysis oftransport policy options which is now under review by the Government.

Freight Transport

2.13 There are very few large freight transport operators in Ugandaand the largest volume of transport is still carried by small owneroperators with fewer than three trucks. These carriezs also supply thebulk of the freight transport capacity.

2.14 The major freight transporter in the country is the UgandaCooperative TransDort Union (UCTU) a cooperative which comes under theumbrella of the Ministry of Cooperatives, but which operates with full

autonomy. UCTU operates a fleet of 150 vehicles ranging from 8 to 18 tonscarrying capacity with an availability rate of about 70%. The UCTU isowned by thirty regional co-op unions who are its shareholders. Theregional co-ops in turn are owned by individual farmers set up as districtunions. The UCTU was set up mainly to provide transport for its membersbut it also acts as a for hire carrier for any individual in need oftransport. Its members are provided transport at cost while profits fromother operations are rebated back to the membership at: the end of the

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year. UCTU's main role is to move coffee from the farms to the CoffeeMarketing Board's central processing plan in Kampala but lately it has alsobeen involved as a sub-contractor to Kenatco (Kenya) for movement of coffeefrom Kampala to Mombassa. UCTU is building a new centralized maintenanceworkshop in Kampala and also has three repair workshops upcountry for minorwork. However, repair works are often held up for lack of spare parts.

2.15 Part of the truck fleet originally purchased by Government wasdistributed to various marketing boards including the Coffee MarketingBoard, the Cotton Marketing Board and the Produce Marketing Board. Most ofthe vehicles were ordered without due consideration of type or size andintended utilization. The trucks are often too large to be operated onsecondary or feeder roads resulting in less than optimum conditions andhigh ton/km costs. Since these vehicles are now some years old and mostlyused on main roads gradual vehicle replacement will improve the operation.

2.16 A major transporter of freight in the past was TRANSOCEAN, aparastatal reporting to the Ministry of Commerce. In addition to providingtransport, TRANSOCEAN acted as a freight forwarder for goods moving betweenUganda and the port of Mombasa. However, TRANSOCEAN has not been able tocompete with UCTU and as such its rcle is being reduced to that of freightforwarder only. Before the liberation war, it had up to 300 heavy trucksbut its fleet has mostly been destroyed or looted and only a few trucksremain mostly operating within Uganda. The firm should concentrate on itsrole as a freight forwarder since it has experience in the field and thistype of service is required by Uganda to clear goods from the port ofMombasa.

Passenger Transport

2.17 Public passenger services are provided by two parastatalorganizations, the Uganda Transport Company (UTC) and People's TransportCompany (PTC), under the jurisdicticn of the Ministry of Transport. UTC,which provides bus service in Kampala and also on some routes in Westernand Southern Uganda has a fleet of about 145 buses with an availabilityrate of only about 30%. PTC, headquartered in Jinja, operates on routes ineastern and northern regions with a fleet of about 50 buses of which onlyabout 35% were operational in mid-19182.

2.18 In addition to these two parastatals, there are a number ofprivate bus companies (160 in 1979) licensed to operate specific routes.Many of these carriers compete directly with the two parastatals, but theprivate carriers tariffs are about two to three times the fares charged byUTC and PTC. However, due to the shortages of spare parts and high vehicleoperating costs, many of the private carriers have gone out of business orceased operations. There is a sericus shortage of public passengertransport in Uganda and in Kampala, passengers often have to wait more thanone hour for a bus.

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2.19 The transport of passengers by highway carriers is more closelyregulated than the transport of freight but presently not well enforced.Carriers must apply to the Transport: Licensing Board for permission tooperate on a specific route. The applications are publicly announced andhearings are held. Carriers already providing service on the route inquestion can oppose the application and the Board decides.whether or notpublic convenience and necessity dictate that a new carrier should beallowed to operate. The tariffs charged by UTC and PTC are regulated bythe Ministry of Transport. The current permissible fare is UShs 2.50 perpassenger km irrespective of terrain and road surface. For urban transportthere is a minimum of U.Sh. 30 per trip for the first 5 km and 5 U.Sh. perkm thereafter. Private carriers are only provided with an indicative ratewhich is set at UShs 286 per vehicle/km (minimum 100 km).

2.20 Regulated rates charged bly UTC and PTC are non-remunerative andbarely cover out of pocket expenses.- No allocation is made for equipmentreplacement and the level of fares :Ls a disincentive to the management ofthese operations. As such service 'Levels have deteriorated substantially,the public suffers from reduced transport availability. If the Governmentwishes to provide a subsidized public passenger service-, the parastatalcompanies should be encouraged to restructure their operations on acommercial basis with Government providing a direct operating subsidy.

Railway Transport

2.21 Historically, rail services were provided in Uganda, Kenya andTanzania by the East African Railway Corporation (EAR). Following thecollapse of the East African Community (EAC) in 1977, the Uganda RailwayCorporation (URC) was formed to provide the service previously supplied bythe Community. URC operates on the basis of a 1977 decree which gives itthe responsibility to caretake the affairs of the East African RailwaysCorporation as an interim measure. A new railway act is in the process ofbeing drafted and is expected to go before the National Assembly shortly.Because of a still unresolved dispute among the EAC partners over thedistribution of assets, Uganda has been required to invest considerablesums of money to acquire rolling stock and provide the necessaryoperational facilities. Being a landlocked country, Uganda remains heavilydependent on the rail access route to the Indian Ocean, via Kenya and theport of.Mombasa. There is no discrimination in tariffs for Uganda trafficbut costs are high partly as a result of separate rail tariffs for Kenyaand Uganda. It has also been improving an alternative lake-rail route viaTanzania to Dar es Salaam.

i) Organization

2.22 The Uganda Railway Corporation is a semi-autonomous corporationestablished to carry out the services within Uganda previously provided bythe East African Railways. Its operations are governed by a Board ofDirectors appointed by the Minister of Transport. The URC is charged withcarrying out its functions with due regard to sound financial principlesincluding: (i) ensuring that its revenues are sufficient to meet all its

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charges including interest on capital and loans; (ii) ensuring thatsufficient provision is made to provide for depreciation of assets; and(iii) the offsetting of any losses or bad debts. In practice, however,these goals are rarely met.

2.23 The management of URC is very weak. Since the formerheadquarters of the dissolved EAR were located in Kenya, Uganda being onlya division of the previous system, there was very little managerialcapability upon which the URC could draw. Training facilities were alsolocated in Kenya and Uganda has not yet set up its own training school.Attempts at using the Kenya training centers proved too expensive forUganda. While URC has some engineers, they lack the confidence required tomake decisions and the new Managing Director has limited railwayexperience. In all facets of the organization but especially at themanagerial level, incumbents may be academically qualified but possess norailway experience. This is especially noticeable in the posts of thechief civil engineer, chief accountaLnt and the head of purchasing andstores. The railway lacks a planning department capable of preparing anylong range investment programs. At lower staff levels, many of the trainedUgandans, who were previously employed by the East African Railways, areapproaching retirement age and will have to be replaced. The need fortechnical assistance in the short to medium term and a massive program oftraining to fill the longer term gap is one of the most critical prioritiesto be addressed by the URC. The establishment of training facilities forthe railway should be a top priority in any assistance program. One optionavailable to the railway in the short term would be to seek a qualifiedfirm to manage the operations of the railway and set up the necessarytraining program to build up URC's institutional capability. A severeproblem among many staff is the level of salaries and wages. Present wagelevels of the workers represent less than one fifth of their basic needs,therefore workers are obliged to devote a major share of their efforts tosecure alternate sources of income and use their railway employment to ful-fill their needs for housing and social services. As mentioned earlier thesalary/wage problem is economy-wide and requires a concerted solution.

ii) Facilities

2.24 The history of railways in Uganda goes back to 1912 when a firstsection from Jinja to Namasagali was laid. The line from Malaba to Jinjavia Mbulamuti was laid in 1928; from Jinja to Kampala in 1931; from Kampalato Kasese in 1953; from Tororo to Soroti in 1929; from Soroti to Lira in1962 and from Lira to Packwach in 1964. All totalled the railway comprises1,280 km of single track. The physical infrastructure of the railway is infair condition for the current levels of traffic but is in need ofmaintenance and rehabilitation. While most of the track-was not seriouslydamaged during the liberation war, it is mostly sub-standard due to itslong life (more than 50 years in some cases) and inadequate maintenanceover the past decade.

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2.25 Uganda is virtually dependent on Kenya for its import/exporttraffic, making co-operation with Kenya a key element in Uganda's overalltransport strategy. There is an urgent need to exten,d and strengthencooperative railway operations, including the rationalization ofinterchange of rolling stock and revenue agreements b,etween the twocountries. URC's investment needs will depend to a great extent on thewillingness of Uganda's neighbours, especially Kenya, to co-operate and runan integrated service. Only about 25% of the total distance betweenKampala and Mombasa is within UgancLa. Furthermore, wlhile URC is criticallydependent on Kenya railway's operations, transit traffic represents only afraction of the latter's traffic, and thus receives relatively lowpriority, especially at peak traffic periods. Hence IJR and Kenya Railwaysdo not feel the same urgency about cooperating.

2.26 The Railway's highest priority is therefore to seek assistance tohelp negotiate the necessary interchange agreements with Kenya Railways.Recent discussions dealing with the Northern Corridor (Rwanda, Burundi,Uganda and Kenya) leave room for optimism. Channels of communications atthe highest levels have been opened and procedural det:ails have beendecided upon, and agreements have been worked out to standardizeregulations for the transit traffic between all the countries.A draft railway operating and interline agreement between URC and KRC isnow being reviewed. Further developments will have to be closely followedand all possible assistance given to help the four cotntries in question tosolve the transport issues affecting international transit traffic.

2.27 With respect to rolling stock, Uganda has had to purchase aconsiderable amount of new equipment because much of the rolling stock waslocated in Kenya when the East African Community broke up. Whilearbitration over the disposal of the Community's assets continues, Kenyaforwards some wagons but not always those required by Uganda, particularlyfor the transport of petroleum products. An inventoryr of motive power androlling stock of URC is presented in Annex V, Table 6.. Some passenger-coaches have been purchased and the railway intends to acquire more.Currently, URC has a fleet of 62 diesel locomotives, most of which are lessthan five years old. For a railway of its size and current and anticipatedtraffic levels, this fleet is more than adequate. However the availabilityrate at any given time is relatively low (about 60%) dlue to lack ofmaintenance and spare parts.. The mvotive power fleet was recentlyrehabilitated with assistance from the U.K. and Germany but problem ofpreventive maintenance will continue to hamper the railway because ofshortages of foreign exchange required to buy spare parts and materials.

iii) Traffic

2.28 Passenger traffic declined with the breakup of the East AfricanCommunity (Annex V, Table 7). In 1975, the peak year, the railway handled2 million passengers, but dropped to 867,000 in 1977 but increased to 3.3million in 1982. This decline began to reverse itself in 1980 as therailway bought passenger cars for long distance travel and resumed itssuburban services around Kampala using cattle wagons for lack of betterequipment.

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The returns on rail passenger transport, however,- is low. Suburbanpassenger transport could more easily and cheaply be provided by a wellorganized and managed bus system. This should definitely be a short termpriority area for study before a decision is taken by the Government tocommit funds for more passenger coaches.

2.29 Freight traffic has steadily declined from 1970 levels and stillshows little strength although export of coffee now averages 5 trains perweek of about 300 tons each. While the reduction in economic activity hasbeen the principal cause for the decline in rail traffic, diversion oftraffic from rail to road has also contributed. This is the case both forprincipal coffee exports and fuel imports. The railway carries only asmall portion (6,000 tons or 4%) of fuel imports. This should increasewhen URC can get tank wagons under their own direct control. Another areaof potential expansion is the movement of import goods in containers. Withfive trains now running per week in both directions from Kampala to Mombasaand with the ability to further increase this capacity, the railway shouldbe carrying the majority of import-export traffic. However, by beingdiverted to road, Uganda bound and international transit traffic is addingsubstantially to the deterioration of the road network in all countries, inaddition to the comparatively high transport cost of the goods moved. Thisis particularly so on the main international Ugandan access routes toRwanda, Zaire, Kenya and the Sudan. It is therefore critical that thisissue be addressed by the Governments concerned (para. 4.16).

2.30 The major factor behind the diversion from rail to road is thepressure from truckers, mostly Kenyan who have managed to capture a largeshare of the transport between Kenya and its landlocked neighboursfollowing the breakup of the EAC in 1977. Due to internal and politicalpressures in Kenya, it has been extremely difficult for Kenya and UgandaRailways to reach and implement a commercial operating agreement.

iv) Future Needs and Assistance

2.31 In the short term, URC needs technical assistance to strengthenthe institution and reorient the management to commercial practices. Also,URC needs assistance to identify training needs and design a program toensure that its manpower needs can be met as technical assistance is phasedout.

2.32 In terms of hardware, the priorities which have been identifiedat this stage are: (i) track rehabilitation; (ii) completion of works insupportive infrastructure, communications and workshops; (iii) provision ofhandling ecuipment and specialized freight wagons, particularly forcontainers; and (iv) a training facility.

2.33 The future of URC will depend on its ability to operate on acommercial basis, secure an operating agreement with neighbouring railwaysand provide an economic service which is attractive to shippers.

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2.34 Import fuel traffic will increase when 25 tank wagons financed byEuropean Development Fund are delivered. This will supplement such rollingstock previously owned by EAC and now operated by Kenya Railways. Inaddition to bilateral aid from the U.K. and the Federal Republic ofGermany, for the purchase of locomotives, the URC has also receivedassistance from the French Government for the purchase of locomotives andtrack maintenance equipment, for improvement of operations along a sectionof the main line between Kampala and Tororo on the Kenyan border, and forthe expansion and improvement of telecommunications. Regarding the latter,the French are providing the railway with a new microwavetelecommunications system which includes centralized train dispatching andcontrol. Further work in all these fields will be required as part of theoverall rehabilitation of the railway in parallel with the need to improvethe organization and management. The multiplicity of donors interested inthe railway combined with the varying and urgent needs of URC make itimperative that external assistance be better coordinated to avoidduplication of investments or projects on a grander scale than necessary.

B. Water and Air Transport

i) Water Transport

2.35 Until the present time, water transportation in Uganda wasvirtually non-existent. In the past a wagon ferry was operated betweenJinja and Mwanza in Tanzania by the East African Community as part of theinternational corridor through Tanzania to Dar Es Salaam. After thebreakup in 1977 the ferry ceased to operate and diversion of traffic to thenorthern corridor through Kenya and 1:o road transport occured due to theunreliability of this route. The Tanzanian ferry operates intermitentlyand is often out of service due to lack of spare parts. In 1978 theGovernment of Uganda contracted with a Belgian shipyard for the purchase ofthree rail car ferries for the Lake Victoria service. The financing wasarranged through a barter of Ugandan coffee. The ships were fabricated inBelgium and disassembled for transport and are being reassembled at PortBell near Kampala. The first ferry began operating in October 1983 withtwo others to follow in 1984 and 198'i. With the advent of containers,transport using wagon ferries is not a least cost solution forcontainerizable cargo. Therefore, the system being put into place may soonbe obsolete for such cargo. However the Government considers it necessaryto have a lake service as an insurance option, and for certain commoditieslike oil products at the moment an alternate access to internationalmarkets could lead to reduced import costs despite a longer and moreexpensive transport distance. Recent:ly this route is also carrying exportsof maize from Uganda to Tanzania.

2.36 Further, while the Lake Victoria service functioned relativelywell under the East African Community, the three former member countrieshave set up independent, uncoordinated transport systems. It isquestionable whether the new ferries contracted by Uganda can effectivelyfulfill all normal transport needs of the country given that a large partof the proposed transport route is in Tanzania and beyonid Uganda's

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effective control. Traffic levels in Uganda do not warrant furtherinvestments to modernize and update two separate and competing routes (seeAnnex I, International Transport Routes). While it is doubtful thattraffic levels in Uganda alone woul,d justify additional investments in theLake Victoria alternate route, such a route will provide Uganda with astronger bargaining position vis-a-vis Kenya. In the case of petroleumproducts, this route has proven cheaper than the pipeline/road alternativethrough Kenya. It is, however, more expensive than the all rail routethrough Kenya. Therefore, rather than expanding the capacity of the LakeVictoria route beyond its current level, the Government should keep thisoption open but continue to make every effort to secure the necessarycooperation with Kenya to ensure the most efficient and least costtransport route to the Indian ocean.

ii) Air Transport

2.37 The infrastructure for air transport consists of an internationalairport at Entebbe and eleven domestic airfields, of which eight wereoperated until June 1981 when all domestic services were suspended due tounsafe operating conditions. Operations resumed in mid 1982 but flightsare often cancelled because of lack of equipment and navigational aids.

2.38 Entebbe airport is equipped to handle wide-body aircraft but itslighting and navigational equipment, which were damaged during the war,are now being repaired and therefore flights are operated under vi'sualflight rules until these works are complete. Only one major carrier,SABENA, operates a weekly DC-10 service from Brussels. Other internationalflights are operated by Ethiopian Airlines, once a week, and Kenya Airways,three times a week. Although the passenger terminal is relatively new, itsuffered some structural damage during the liberation war and is in need ofrepairs. Other facilities damaged during the war in addition to thelighting, radar and navigational facilities include the fire-fightingequipment, the control tower, and the meterological equipment.Accordingly, the'airport was designated unsafe by ICAO and is one of themajor reasons why most of the major carriers which had served Entebbe haveleft. A cargo terminal, whose construction was interrupted by the war, isbeing completed, as and when funds are available. Upcountry airports aremostly small grass or murram landing strips with small, poorly maintainedbuildings. The airfield at Soroti, the site of a regional air trainingschool, has a control tower; most of the other airstrips have no grasscutting equipment, or serviceable navigational and safety aids.

2.39 Uganda Airlines was formed in 1976 and became the sole nationalcarrier with the collapse of East African Airlines in 1977. During the warmuch of its aircraft and equipment were lost or damaged, including twoB-707s. Since the war, the airline has replaced the B-707s and resumed itsinternational service to points in Europe, the Gulf (Dubai) and regionalcenters in East Africa. The airlines' fleet comprises two B-707-320C's,one F-27 and one Beechcraft King Airs. The B-707s and the F-27 are used onscheduled services.

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2.40 Traffic levels on Uganda Airlines are relatively low ( Annex V,Table 10) with air cargo the most important revenue-earner. Both B-707aircraft are combi-versions carrying main-deck cargo. In 1982, ininternational services 47496 passerngers were carried (1981:43572) and 5818tons of cargo (1981:5569 tons). Domestic flights are less important. Thefirst six months of 1983 only 14469 domestic passengers were carriedcompared to 21841 on international services. A main problem for theairline is that low international passenger are reduced further throughconversion at official (window one) exchange rates, whereas a largeproportion of costs are in foreign currency only obtainable at lesspreferential exchange rates. Furthermore the airline lacks a suitableaircraft for regional routes within Africa and the B-707 aircraft will notmeet noise limits in Europe after 1985. A low level of capitilization forthe airline also limits its operations.

2.41 The first priority in the sub-sector is to restore Entebbeairport to ICAO standards and thus improve safety and induce internationalcarriers to resume services so that Uganda Airlines can concentrate onregional routes. This would also require a concurrent: effort torehabilitate tourism infrastructure to stimulate demand for air transport.While complete rehabilitation of Entebbe airport is estimated to costUS$25.0 million, the Government has included US$2.3 miLllion in its revisedrecovery program to make the minimum repairs to the aiLrport and provide theessential navigational aids, meterological services and runway lighting torestore safe operations. This is reasonable in the light of the needs toensure adequate and safe air transport connections to and from Uganda.

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Chapter III

A. Institutional Structure for the Sector

3.1 Two ministries share the main responsibility for the transportsector, the Ministry of Transport and the Ministry of Works. Also involvedindirectly are: the Ministry of Commerce for transit traffic; the Ministryof Co-operatives and Marketing for UCTU and marketing parastatals; theMinistry of Planning and Economic Development for overall investmentplanning; and the Ministry of Finance for project financing and externalaid.

3.2 The Ministry of Transport has a policy role in matters of road,rail, air and water transport. It also oversees the operations of UgandaRailways, Uganda Airlines, the Uganda Transport Company (UTC) and People'sTransport Company (PTC), the latter two being involved in road passengertransport. The Ministry of Transport has a transportation department whichoperates a fleet of 30 for hire trucks at the official tariff as a publicservice for customers not able to avail themselves of transport atcompetitive rates. The Ministry of Transport is also responsible fortransport regulation, control, tariffs, and road transport safety.

3.3 The Ministry of Works (MOW) is responsible for planning,constructing and maintaining highways and for airport operations includingthe international airport at Entebbe. A more detailed description of MOW'sorganization and staffing is presented in Annex III.

3.4 The transport planning function is in principle supposed to becarried out in-a collaborative way by the Ministries of Transport and ofPlanning and Economic Development (MPED). However, because of the lack ofclearly defined objectives and of data and manpower shortages, little hasbeen done and most transport agencies and parastatals have, default, takenon a high degree of autonomy in planning their investments. As expectedthese agencies give little regard to economic or intermodalconsiderations. While the MPED should have the role of overall economicplanning, including coordinating the transport plan with relevant sectorsof the economy, the sectoral responsibility should be left to the Ministryof Transport. The latter should: (i) systematize an intensive transportsector knowledge through better data collection and analysis; (ii) assessUganda's medium and longer term transport needs; (iii) prepare acomprehensive transport investment program; and (iv) develop a transportstrategy and policy framework. Some effort is being made in this directionwith the ongoing ILO/UNDP project which is providing technical assistance.Further assistance and training support will be necessary to accomplish theabove tasks and ensure local capacity to continue them.

3.5 To assist the MPED in its role as overall investmentco-ordinator, a UNDP project, with the Association as executing agency, isproviding, among others, a transport: specialist to advise Government ontransport matters, particularly with respect to the rehabilitation of thesector. The transport advisor is part of a team in bIED which is to assist

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that Ministry in implementing Government's program of economicrehabilitation. Because of the weak links between the MPED and theMinistry of Transport and the criti.cal shortages of specialists for thelatter to carry out its function, the transport advisor has not yet beenable to have the impact on transport planning that was originally intendedfor him. The terms of reference of the transport specialist call for himto inter alia: (i) prepare a docunment on transport policy reflecting theneeds and priorities between modes; (ii) review, appraise and monitorimplementation of transport sector projects; (iii) examine pricing andtariff policies for transport; and (iv) train counterparts in thetechniques and methods of transport planning and project preparation.

B. Transport Policy and Planning

3.6 As was stated-above, the Ministry of Transport is responsible fortransport policy in addition to its role of planning and coordination forthe sector. Although no clear transport policy has been enunciated, a setof implicit or explicit objectives can be derived froma Government actionsin the sector. Thus, for international transport, the Government sees railtransport as the principal mode for long distance freight movements.Moreover, given the difficulties experienced with Kenya in operating thecorridor to Mombassa, it is seeking to strengthen previously usedalternative routes, namely the Lake Victoria - Tanzania (rail) corridor toDar Es Salaam. Additionally, it has assigned an active role to UgandaAirlines in international air transport. On the domestic front, policyobjectives are considerably less articulate. For examiple the role of theparastatals vis-a-vis the private sector is not well defined. Although theGovernment's general strategy is to bring the transport system back to itsformer level of efficiency, it has been working concurrently at improvingcompeting road and rail services without a clear set of priorities.

3.7 To help it formulate a comprehensive transport policy, theGovernment requested the International Labour Organization (ILO) to: (i)review the current situation and prepare an overall transport policy; and(ii) prepare a feasibility report on needed surface transport investments.The ILO has agreed to submit the report currently being prepared to theAssociation for comment. This assignment will be followed by a secondphase which will involve the recruitment of a transport development advisorfor a period of 18 months to assist the Government in the initial phase ofthe implementation of the policy and provide advice to the Ministry ofTransport on transport matters. In addition the ILO project includes 20man-months for specialized consultancies such as maintenance management,management information systems design and installation, supply and storesmanagement, and railways management training. The 20 man-month duration ofthe transport development advisors' assignment under the ILO project mayneed to be extended to permit more meaningful work. Parallel to thisassistance is the need to help establish a statistical division in theMinistry of Transport to coordinate the data gathering and analysis neededto monitor the performance of the transport system (para. 3.10). Atransport planner/statistician and assistant expert in this field will beneeded in the Ministry of Transport..

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3.8 The Ministry of Transport is seriously understaffed, andtherefore has not been effective in its role as transport planner andcoordinator. The MPED, which has overall investment coordinatingresponsibility, is also weak and not iable to provide the much neededdirection to other ministries. This was evidenced in the inordinately longdelay required to get approval of a sub-project under the TechnicalAssistance Credit (1077-UG) to financie the updating of theHighway Maintenance and Organization Study in preparation for the proposedThird Highway Project.

3.9 The Government's first priority in overcoming problems in thetransport sector is the manpower shortage issue which not only affectstransport but all other sectors. Partly responsible for this is the lowlevel of salaries which militates against the attainment of high producti-vity levels by workers (para. 2.8). Also, Government must strengthen MOT'sauthority for overall transport sector responsibilities anddecisions.Government recognizes that this will be difficult without largeinputs of technical assistance and training of local staff.

3.10 One of the major reasons why the Ministry of Transport and theMPED are unable to carry out their roles prdperly is the lack of data foranalyses of sector performance. There are virtually no data on transportcosts or they are so outdated and unreliable as to be of little value.Transport costs are important not only. for transport policy, but also forpricing policy in general. Traffic data are sketchy or out of date andregular traffic counts have not been carried out since 1974. This is inpart due to the severe manpower shortages of both MOW and the Ministry ofTransport but is also the result of a system unable to adjust to changefollowing the collapse of the EAC. Under the East African Transportsystem, statistics were relatively well kept but the present situation inUganda requires that a whole new information collecting system be set up.One of the first tasks in reorganizing the transport planning function willbe for the Ministry of Transport to work closely with the Department ofStatistics in MPED to set up a system of data gathering to monitor thetransport sector. It will also require the close collaboration of theCustoms Department to monitor international traffic which is very importantto Uganda as a landlocked and transit country. This important problem willhave to be addressed in the long and medium term on one hand but in theshort-term will require technical assistance and training to organizeprocedures and train staff.

3.11 In summing up, the institutional and policy planning andcoordination issues facing the transport sector in the short term are, inorder of priority:

(i) the severe manpower shortages at all levels, but particularly atmanagerial levels;

(ii) the lack of a data base with which to analyze the sector needsand performance;

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(iii) the lack of a clearly defined overall transport policy; and

(iv) the lack of a clearly defined relationship between the Ministryof Transport and the MPED.

C. Investment Plan

3.12 The main priorities in the sector are to rehabilitate thetransport system so that it can cope with the demands being placed on itnow and in the coming years as the economy is revitalized. The two highestpriority areas on which the Government is concentrating, and with which theAssociation agrees, are the rehabilit:ation of Uganda Railways so that itcan move a greater share of the import/export traffic and the maintenanceof the national road network. In order to tackle these priorities, theGovernment has prepared a recovery program (1982-84) which was recentlyrevised, amounting to US$789.6 million of which transport's share isUS$78.6 million (10%). The share of other sectors are: 27% foragriculture, 35% for industry and tourism, 20% for social infrastructureand the remainder for communications, mining and energy. Given the shortterm needs and condition of the transport system, the distribution of therecovery program is reasonable. The breakdown for transport is as follows:Roads - US$48.6 million (Annex V, Table 11); Railways - and Lake VictoriaPorts - US$26.0 million; and airports - US$4.0 million. Except for thefunds allocated to the Lake Victoria ports, the other projects are soundand reflect the priorities in the sector. The funds allocated to the LakeVictoria ports is to provide new ferry facilities at Port Bell (facilitiesalready exist at Jinja); but the economic justification of all the proposednew ferries is questionable.

3.13 The recovery program as a whole is very ambitious, and it isclearly evident at this stage that only part of it may be completed by theend of 1984. The most obvious constraints to implementation of theproposed program are financial and maLnpower shortages. For transport theabsence of a well communicated transport policy, and proper coordinationare the greatest bottlenecks.

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Chapter IV

Problems and Recommendations

4.1 The transport sector in Uganda is of vital importance to therehabilitation of the economy. As Uganda is also a landlocked and transitcountry, the importance of having an efficient transport system is furtherhightened. However, the country is still weakened from a decade ofeconomic mismanagement culminating in a devastating liberation war. It wasanticipated that the economy would rebound quickly once these constraintswere removed but the damage was so pervasive that righting it has and willtake time. As already stated, the transport system also suffered greatlyfrom the economic deterioration and the collapse of the East AfricanCommunity. It is widely recognized that one of the key elements inrestoring the economy is the need to restore the transport system. Thepreceding discussion has outlined problems which must be solved if theperformance of the sector is to be reinstated so that it can adequatelyfulfill its role. The problems are summarized below with recommendationson how to solve them.

A. Lack of Qualified Manpower

4.2 Under the East African Community, management of all transportentities was headquartered in Kenya with only divisional or operating staffin Uganda. After the EAC breakup, Uganda launched itself in a number oftransport operations, including Uganda Railways and Uganda Airlines, withvery few experienced management staff. The shortage was compounded by theexodus of most of the experienced staff during the Amin regime. This hascontributed to the major operational and financial difficulties and theresulting loss of efficiency and the high transport costs which thesecorporations face..

4.3 It is recommended that a comprehensive manpower survey beundertaken for the transport sector and that a program of technicalassistance and training be established in which potential donors couldparticipate through modal specific projects. The manpower survey could bea possible sub-project to be financed under the proposed Second TechnicalAssistance Project.

B. Low Level of Salaries

4.4 The level of salaries in Ulganda has not been sufficientlyadjusted following the devaluation of 1981, and as such Governmentpersonnel, in particular, receive saLlaries which only cover about onefifth of the cost of living. Most employees are forced to seek other formsof remuneration and many have undertaken gardening on the side to supplynecessary foodstuffs. Because of these other activities, productivitylevels are low and absenteeism from work is high.

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4.5 While this issue must be addressed at the miacro-economic level,it has serious implications in the transport sector, particularly roadmaintenance. The Ministry of Works is having difficulty attractingqualified personnel as a result of the low salary structure, and the sameapplies to other Government transport parastatals. A complete review ofthe Government salary structure will have to be undertaken before properlevels can be established. In the meantime the impact of the problem inthe transport sector could be alleviated by the use of private contractors-both foreign and local. Also possible support from the IWorld Food Programto supplement wages for workers involved in such works as routine roadmaintenance could be considered.

C. Need to Improve the Transport Information System

4.6 One of the highest priorities in the transplort sector is-toestablish a data base upon which the analysis of the performance of thetransport sector and decision-makiag should be based. Information ontransport costs, supply and demand, financial control, and pricing are verydifficult to obtain since the Department of Statistics in the MPED has allbut ceased to function.

4.7 To address the problem of the poor data base in transport, it isrecommended that as a supplement to the ILO Project (Para. 3.7) a transportstatistician and a transport management information specialist be recruitedto work with the Ministry of Transport. The experts should be responsiblefor collection, coordination and analysis of all the necessary data andinformation pertaining to the railway, the airline, and the road transportindustry in order to provide the necessary policy recommendations as wellas help rationalise the day to day operations of the transport system.

D. Transport Sector Management

4.8 One of the major needs in the Uganda transport sector is planningand coordination within the sector and between transport and otherproductive sectors. The proliferat:ion of agencies involved in transportand the need to coordinate domestic transport needs as well as Uganda'srole as a major transit route can nio longer be handled on an ad-hoc basis.This is compounded by the totally uncoordinated aid being provided to thesector by external agencies both bilateral and multinational.

4.9 As mentioned earlier the Ministries of Transport and Planningwhich should have planning and coordination responsibility are unable tofulfill this role, due chiefly to a shortage of trained manpower.The training programs proposed in para. 4.3 will have a beneficial impacton these Ministries, and the reinforcement of transport planning throughthe setting up of an adequate data gathering and analysis system will be amajor step in improving transport planning and coordination. Furthertechnical assistance in the medium to long term will, moreover, berequired.

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E. Need to Concentrate Future Investment in Rehabilitation and Maintenanceof Infrastructure and Equipment

4.10 It is clear that in the short term Uganda must concentrate itsefforts in rehabilitation and maintenance of its existing transportsystem. Many years of neglect have resulted in serious deterioration inall sub-sectors. In highways, assistance is needed for MOW to rehabilitateits road maintenance capability and train staff to carry out the works.This will be addressed under the proposed Third Highway Project appraisedin April 1983. The road transport fleet is also in need of rehabilitationand expansion. The quickest method to make funds available to purchasespare parts and equipment is to use the Association's SecondReconstruction Credit, and Government should be encouraged to carefullyselect sub-projects which will help it increase transport capacity at thelowest possible cost. -

4.11 For rail transport, the most pressing problem is to increase itscapacity to carry more import/export traffic. This will require seriousnegotiations with Kenya and support from the Association. The railway hassufficient locomotives and while it could use more rolling stock, it is ineven greater need of management assistance and track renewal. Expansionof the Lake Victoria ferry service also needs to be reviewed seriously inthe light of containerization. It is too late to advise Government againstthe introduction of the ferry boats since they have been practically paidfor. Government should, however, take any opportunity to sell or lease thelast one and be open for their use not only by wagons but also bylift-on-lift-off containers.

4.12 The most pressing problem facing air transport is in the shortterm the restoration of Entebbe airport to ICAO standards to ensure safetyof operations. Assistance to Uganda Airlines is also needed to determineits possible reorganization into a more cost effective operation and itsbest options for fleet replacement.

F. Need for Foreign Exchange to Purchase Spare Parts

4.13 To date the effort to rehabilitate the transport sector has beenlimited, in part, by the shortage of spare parts resulting fromGovernment's foreign exchange crisis. Transport equipment is severelyunderutilized because of the lack of spare parts and the slow bureaucraticprocedures for allocating funds from the available credits. In addition,the lack of a clear-cut set of objectives and policies for the transportsector has made it more difficult for Government to mobilize resources fromother agencies. As the economy improves, it will be imperative thattransport maintenance equipment and vehicles be rehabilitated as a firststep to improving productivity and utilizing existing assets in all modes.The reconstruction credits will likely require supplemental assistancewhich could be met through projects in each sub-sector. As the roadsub-sector is one of the most critical, further assistance in the provisionof spare parts purchases for maintenance equipment is a part of theAssociation's proposed Third Highway Project. Assistance to other modes,namely railways and the road transport industry, are be provided as a shortterm measure from the IDA Reconstruction Credits.

- 24 -

G. Financial Management of the Sector

4.14 In its haste to build its own transport system after the collapseof the East African ComTminity, Uganda embarked on a series of investmentsin transportation equipment including aircraft, railwray rolling stock,ferrys, trucks and buses without much consideration f'or their financialviability. In addition, the capitalization of most of the parastatals issuch that it could not even cover the cost of spare parts needed to run thevarious operations. As such, deprieciation accounts are meaningless and theagencies, including Uganda Railways and Uganda Airlines, are unable toaccurately reflect costs in their tariffs. There is very little financialdiscipline other than what is imposed by budget restrictions.

4.15 It is recommended that before any further investments arecommitted, studies of Uganda Railways, Uganda airlines, UTC and PTC beundertaken to determine their cost structures and review tariffs so thatthey may be brought in line with operating costs for each mode. This isone of the objectives of the IDA-financed parastatal cost accountingstudy.

R. Coordination with Kenya

4.16 Being a landlocked country, Uganda suffers from having to transitthrough another country for its access to the sea, a route which is 90%outside its .territory and control. Coordination between Uganda and Kenyais critical to the functioning of UJganda's transport system, particularlyrail. In addition, Uganda serves aLs a transit route for goods travellingto and from Rwanda, Bur'undi, parts of Zaire and the Sudan. The effectiveutilization of the rail system between Kenya and Uganda is being hamperedby lengthy procedures imposed by Kenya, including discriminatory charges,and by the strong trucking lobby in Kenya which has successfully capturedand retained a large share of bulk traffic to Uganda which economicsdictate should be moved by rail. T'he heavy trucks used for road transportare seriously damaging roads in both countries. The absence of a workingagreement between the countries has also imposed much higher costs on theUgandan rail system than would otherwise be the case. Considerableprogress in this area has been made recently but needs to be followed up.

4.17 It is recommended that the northern corridor (Kenya, Uganda,Rwanda, Burundi and Eastern Zaire) be considered in a regional context sothat assistance could be linked to regional cooperation in matters ofcommon interest such as transport. Even in the case of Kenya which appearsto benefit from the status quo, the absence of a cooperative agreementbetween the two countries and the overloading on the Mombasa-Uganda borderroad are causing severe damage to the road. It is rec:ommended thatexternal aid agencies assisting the northern corridor countries put theirweight behind forging a cooperative agreement between the transit andlandlocked countries in the matter of external transport.

- 25 -

I. Summary of Recommendations

4.18 The principal recommendations arising from the foregoing aresummarized as follows:

(i) carry out a transport sector manpower survey and propose atraining program to meet longer term needs for qualifiedstaff to manage and operate the sector's entities;

(ii) set up, for the Ministry of Transport, a system of datagathering and analysis to permit policy formulation anddecision-making in the transport sector;

(iii) improve transport admi.nistration and policy making;

(iv) organize and define more clearly the relationships betweenMPED, MOW and the Ministry of Transport to improve transportplanning and coordination;

(v) establish a mechanism to ensure better aid coordinationamong donors to avoid duplication and concentrate effortswhere it is most urgently needed;

(vi) provide the necessary foreign exchange and improve foreignexchange allocations to the transport sector for spare partsfor essential rehabilitation of road maintenance equipment,vehicles and railway locomotives and rolling stock;

(vii) improve coordination between Uganda and Kenya, particularlyas it applies to rail transport;

(viii) review government salaries and make the necessaryadjustments to motivate staff;

(ix) bring the Entebbe Airport and aeronautical aids andcommunications up to ICAO standards for safety of flightoperations as soon as possible;

(x) monitor closely the financial feasibility of expanding therail-car ferry system for Lake Victoria services linkingUganda and Tanzania, and review the least cost alternativesfor use of the ferry-boats;

(xi) assist the Uganda Airline with a view to rationalizing theairline as an efficient regional carrier and review its bestoptions for fleet replacement;

(xii) embark on an intensive program to train URC staff; as ashort term expedient to recruit technical assistance to helprun the railway;

- 26 -

(xiii) carry out a study oi- possible bus alternatives to UR'ssuburban passenger services;

(xiv) establish Uganda Rai.lways as a financially autonomousagency with the necessary increase in capitalization.

- 27 -

ANNEX I

International Transport Routes

Uganda, a landlocked country, is dependent on its neighbours,particularly Kenya, for overland transport to East African ports. A railsystem capable of handling all of the import and export traffic of bulkgoods, i.e. fuel and coffee, already exists. In 1982, the Uganda railsystem managed, with the assistance of ILO experts, to raise the level ofcoffee exported by rail to 60% of total coffee exports. This representsfive pairs of trains per week interchanged with Kenya Railways compared totwo per week in 1980. Several factors prevent this level from beingincreased further. Firstly, there was a shortage of wagons available toUganda Railways and, secondly, the lack of an interchange agreement withKenya Railways prevented a better utilization of equipment and rollingstock in both systems. Thirdly, the inefficiency of both countries customsat border crossings causes inordinate delays. There is little doubt thatKenya Railways and Uganda Railways have sufficient wagons between them toshift of all Ugandan traffic to rail, over and above current traffic levelson the two railways. However, the breakup of the East African Communityand the deterioration in Uganda Railways performance between 1976 and 1980have resulted in mutual distrust between the two railways. This has led toparts of the old EAR wagon fleet, including tank wagons, beingunderutilized in Kenya. Inequitable interchange practices have developped,such as Kenya Railways charging full tariff for Ugandan freight moving inUganda Railways wagons, without paying an interline wagon hire charge.

Because of the difficulties of reaching an optimum operatingsystem with Kenya, the Government of Uganda has begun to invest heavily inan alternate "insurance" route via Lake Victoria through Tanzania to theport of Dar es Salaam. The investment decisions made to date are notsupported by economic analysis and the Government is not fully aware of thecost implications of its decisions. Three rail-car ferries capable ofcarrying up to 800,000 tons a year have already been contracted in Belgiumand the first one in operation (para. 2.35). Every indicator suggests thatthe Tanzanian transportation system could not absorb such traffic levels.In addition, with current turn around times for wagons to and from Tanzaniaat about six weeks, this would require the purchase of about 1,000additional wagons to operate the route at that traffic level. The cost inwagons alone would be about US$75 million. Even assuming that trafficlevels reach or surpass the early 19,70 levels of 1.6 to 1.8 million tons,this investment cannot be justified.

The most viable option available is to improve and betterutilize the Northern Corridor route which also serves and benefits Rwanda,Burundi and Zaire. This will require that considerable pressure be broughtto bear on Kenya. The benefits to Kenya itself would be substantial. Apossible strategy to induce the Kenyan Government to favour this approachmight include tying future lending to that country for the transport sectorto improved co-operation between the two countries.

- 28 -

ANNEX II

Traffic

Up to 1972 the Ministry of Works maintained reliable trafficcounts for all sections of the classified road network for which it hadresponsibility for maintenance. Annual records were kept for over 240 roadsections, including primary, secondary and tertiary roads. However from1973 until 1982 only a few scattered traffic counts were undertaken butthese records were lost.

In 1982 the Ministry undertook a traffic counting program betweenApril and June to serve as a basis for updating the Highway Maintenance andOrganization study carried out by consultants. Traffic counts wereundertaken at 39 points (Annex V, Table 2) which were selected as beingcritical road sections of primary, secondary and tertiary roads. Thecoverage of the program was restricted due to security, problems. The 1982figures were compared to the 1972 traffic counts and percentage changeswere computed for the stations which could be compared. The figuresobtained (Annex V, Table 3) show that the traffic levels decreased by about50% over the 10-year period. This correlates well with the number ofvehicles registered and the volume of petrol and diesel fuel imported whichhave also declined by about 50% over the same period (Annex V, Table 4).

For the 1982 traffic counts, the figures varied form a low of 30vpd on tertiary roads to slightly more than 3000 vpd on paved primaryroads. Traffic composition is mostly light vehicles which represent about60% of the traffic levels; medium vehicles and heavy vehicles representabout 30% and 10% respectively.

- 29 -

ANNEX III

Administration and Staffing

(i) Administration

The Ministry of Works has undergone many changes during the pastdecade. In 1972, the Ministry of Works, Communications and Housing as itwas then called, had the following functions: Communications andAdministration; Civil and Highway Engineering; General Engineering; andHousing and Public Buildings. In 1973, a Ministry of Communications wasestablished and in 1976 Housing was separated and the Ministry of Works asa separate entity was abolished and its functions were brought under theMinistry of Transport. This later transfer was accomplished by moving theaccounting and administrative offices to Kampala, but the technical androad services of the MOW remained inL Entebbe. These and othermodifications were accomplished primLarily by executive directives and wereaccompanied by confusion and jurisdictional debates, some of which continueto the present. The situation was further compounded by the looting of theMOW during the liberation war. In 1980 the functions of the MOW werereconstituted under the Ministry of Rehabilitation, and then in 1981 theMinistry of Works reappeared as a se!parate entity.

The fact that the existing organizational structure of the MOW is-the product of a rather fragmented process of development - one which isstill going on - is reflected in the! absence of a comprehensive, currentorganizational chart for the Ministry.

Direction of the MOW is tbe responsibility of the Ministerassisted by the permanent secretary. The services of the MOW are providedthrough four divisions: (i) the Technical Division, (ii) the Finance andAdministration Division; (iii) the Highway Division; (iv) the StoresDivision (see organization chart). Road Maintenance, Training, theMaterials Laboratory and the Mechanical Section all come under theTechnical Division. The Highway Division is responsible for planning,design and construction supervision while the Finance and Administrationand Stores Divisions are responsible for accounts, financial control andsupplies to support other divisions.,

(ii) Staffing

The MOW separates its; employees into two classes: civilservants and group employees (casual workers). Each group has separatedesignations as well as different salary scales. Currently, the Ministryhas an overall vacancy rate of about 50%. It is higher for engineers andmanagement level positions. Out of a total of 39 engineering posts, only15 are filled. This creates severe strains on the overall administrationof the Ministry and the result has been that the level of works carried outis very low. Too many of the persornel are concentrated at headquartersand not enough are assigned to the regions outside the Kampala-Entebbearea. The high vacancy rate has also resulted in distortions of workresponsibility, creating uneven workloads and uncertainty over procedures.

30 -

The high vacancy rates are in part due to the unrealistically lowgovernment salary scales and the security problems which continue to plaguethe country. Most of the engineers positions which are not filled wereleft vacant as these people fled the country or were killed during thereign of Amin. Many are still feariful of returning because of thecontinued political uncertainty. The proposed Third Highway Project willpartly address this problem through technical assistance and training butthe question of salaries will have to be addressed in a broadermacro-economic context.

- 31 -

ANNEX IV

Past Bank Group Assistance

The Association has already helped finance two highway projectsin Uganda. The first (Credit 108-UG, US$5.0 million, 1967) provided forconstruction to paved standard of the Mbarara-Katunguru road (113 km),construction of several small agricutural and feeder roads, and detailedengineering of 740 km of main and feeder roads. According to a Bank auditon this project (No. 1623), the main road construction was of poor qualityas -a result of the contrator's inefficient organization and workmanship,and the actual rate of return on this investment was roughly estimated at8% to 11%, although because of lack of adequate maintenance the returns mayeven be lower.

The Second Highway Project (Credit 164-UG US$11.6 million, 1969)helped finance: (a) construction of 665 km of primary, secondary andfeeder roads engineered under the previous project; (b) a highwayinvestment, maintenance and organization study; (c) feasibility studies anddetailed engineering of about 400 km of roads selected from among thoseidentified in (b) above, and (d) technical assistance to MOWH. The projectwas completed in 1981. Project implementation was hampered, especiallysince 1975, by the lack of local funcds due to the poor performance of theeconomy, lack of qualified staff, and high prices for all purchased goodsdue to shortages and parallel market operations.

I

UGANDATRNSPORT SECTOR IEt4ORANDUH

Table I - UGANDA - llICIIWAY NETWORK(LEIIGTII IN KM)

Primary Roads Secondary Roads Tertiary Roads TotalBit. Gravel bit. Gravel lit. Gravel blit. Gravel TOTAL

Rea ostble Agency

1llatary of Uorks 1,630.0 2,233.0 85.0 1,704.0 219.0 1,146.0 1,934.0 5,083.0 7,017.0

- Kampala 632.0 236.0 77.0 179.0 80.0 155.0 789.0 570aQ 1.359.0

- Hbale 316.0 549.0 553.0 125.0 2'8.0 441.0 1,350.0 1,791.0

- Fott Portal 536.0 5S5.0 2.0 679.0 5,0 443.0 543.0 1,707.0 2,250.0

- Cu,lts 146.0 863.0 6 0 293.0 5.0 300.0 161.0 1,456.0 1,617.0

Rural Local AuthoritIes 20,020.0 20,020.0 20,020.0

Total 1,630.0 2,233.0 85.0 1,704.0 219.0 21,146.0 1,934.0 25,103.0 27,037.0

Source: Hileistry of Works.

[ate: Juae 1983.

F-

33 -

ANN,Ex 5Table 2

UGANDATRAUNSPORT SECTOR !E!ORANDUM

Table 2 - TRUFFIC COUNT LOCATIOIYS

mOW Primary 1982Count Location Secondary Paved Esti3ace4Centre or or AADTNu1ber. Tertiary Gravel

1. Kampala Before Mukono P Paved 11012. Mukono-Kayunga After Makif -,a S Paved 2603. Kayunga-Jinja Near Kagulumira T Paved 3124. KaRpala-Entebbe Before Kajansi P Paved 20685. Kampala-Hoima After: Busunju ' P Gravel 196.6. Kampala-Hityana Paved 2897. Ka=pala-Jinja Near Bulamagi P Paved 18708. Kampala-Masaka After Buddo P Paved 14049. Pakwach-Arua Near Nebbi . P Gravel 64*0. Pakwach-Arua Near Arua P Gravel 11211. Gulu-Karnma After Panwo P Paved 12812. Gulu-Pakwach Afte:r Olwiyo P Gravel 437!3. Gulu-Lira . Near Aboke T Gravel 6314. Gulu-Atiak-Nimule Before Atiak P Gravel 4415. Mbarara-Kikagati Near Gayaza S Gravel 3716. Mbara-Ntungamo-iKabale Before Ntungamo p Paved 21317. Ntungamo-Ishaka Before Kagamba- S Gravel 5418. Ntungamo-Rukungiri After Kebisoni T Gravel 72.19. Kasese-Kilembe T Gravel 41620. Masindi-Kafu-Bridge Befoore Wobulenzi P Gravel 56

Kazpala Afte'r Rafu Bridge21. Port ?ortal-Kasese-Katungure Before Equator Road P Paved 21422. Katunguru-Ishasha S Gravel 1923. Kafu Bridge-Karuma igumba - P Paved 11524. Fort Portal-Kyenjojo P Gravel 6925. Fort Portal-Bundibugyo S Gravel to26. Kabale-Kisoro P Gravel 11127. Iganga-Terinyi-Mbale Before Pallisa Road P Gravel 32'28. Jinja-Kamuli Before Bulangala T Paved 35729. Mbale-Tororo 8 kns from Mbale P Paved 853

* 30. Tororo-Iganga-Jinja Before Iganga P Paved 107831. Tororo-Iganga-Jinja Before Buwayo P Paved 55332. Mbale-Kumi Befere Kumi P Paved 37933. Soroti-Moroto After Akisim S Gravel 3334. Mbale-Kapchorwa-Suam After Sipi S Gravel 42

* 35. Soroti-L.ira Before Otuboi P Gravel 6536. Ishaka-Rukungiri Befoire Fuhind T Gravel 6737. Katunguru-Ishaka After Kikakora P Paved 16238. i!asaka-Kyotara-Mutukulu Before Kyotara P Paved 85939. Masaka-Mbarara Before Lyantonde P Paved 366

Source: MOW and Consultants Louis Berger.

Date: December 1982.

- -.34-ANNEX 5Table 3

UGA2IDATRANSPORT SECTOR 1EMORANDUM

Table 3 - REDUCTION in 1972 TRAFFIC LEVELS BY AREA

Traffic Count 1982 1972centre number traffic traffic

Kampala Area 2 260 2653 312. 195 Average 45%5 196 2541 reduction6 289 547 in traffic-8 1404 1980

Gulu Area 9 88 14211 128 258 Average 43:13 63 259 reduction14 44 96 in traffic

Mbale Area 22 325 10328 357 69429 853 146630 815 1866 Average 58:32 379 392 reduction33 33 184 in traffic

35 65 143

Fort Portal Area 15 37 20116 213 33217 54 12719 416 58920 56 252 Average 52%-21 214 432 reduction22 19 52 in traffic23 115 22924 69 28125 10 12626 111 9737 162 43239 366 421

Averag,e 50%total reductionin traffic

Source: Louis Berger - Highway ?Maintenance and Organization Study -

December 1982.

11WEIKIIT ~ ~ .Si[lll llllil

O Table 4 - rlsmD: lium(ns oW mEimm* 1WIIV is

1905 .1906 1%7 196a 1969. 1970 1971 1972 1913 1974 1915 1976 1977 1978 1979 1960 1961 1982 34

M2h1 ¶I0rt 154,2'. 171,7II 19292 27,36 246,123 279,037 27011fl 263,2G2 222,0 7 27 654. 168,8513 17423 1,721 1324 171407 10 32110700Avlatlon fuel 25,349 31,755 45,309 50.601 f68,327 76,202 77,917 68,720 37.663 38,'629 36,489 23,626 20,196 10,621 5,021 12,91S 14,964 I7,.1)Gasoline 78,4(09 82,955 86,731 91,235 102,593 115,247 10,343 112,975 10,551 115,933 113,421, 89,007 94,733 90,219 59,297 85,985 46,658 43D,90h&to dlesel c/ 50,490 56,998 59,252 69,410 15,2(03 87,5M8 83,851 81,514 75,814 72.71S 73,744. 56,220 59,294 58,815 48,t06 72,507 46,699 49,500

I1-Sf t Ly __*920 22,875 26 44,296 74,607 1538 81,535 77,692 76,521 83345 65927 606 12 64944 39,0 53,359 25 130 20,203 16 7J0likitstital dilel 7,425 8,f1k4 9,792 11,ii5 11,f66 10,190 11,262 9,616 8,IX04 7,024 'T 6W* ' 0 ,i 3,190 1.5839 1T, 1,383 750

I'llel o1II 15,495 14,071 16,3', 39,760 63,541 99,348 70,273 68,076 69,517 76,321 59,123 56,202 60,100 36,115 51,770 23,675 18,820 15,950,

lEwrestic 25t520 3_11n7 29,271 363 Y8 37Y!69 4215MS 38698 38 744 43 357 44 246 49,252 M 694 53S97 45 677 40,450 48620 23735 2921)': er(sC.e c/ 25,03) 30,335 28,151 34,WJS 35,459 40,586 34,856 36,285 40.iW 41,r56 46,493 55,967 51,697 44,18a 39,755 47,816 23,066 28,90

If 1 SiX 736 13,054 1,473 1,710 1,929 3,842 .2,459 2,573 2,700 2,759 2,527 1,9(X) 1,492 695 f94 649 21-------- --- -- -- .....~ .. ~ ....n1....It i r ... ,fcl'i L ftm an,i*t t *ClE I fl

1ilrt total aj z,COO 4, - VJI,71V .j] oj 7qj I It rAu .JIYf i 49tAJ JJ9VUt JJ UJJ A"O7I ±1.! ±fl± 57 ±1 * r

Otler 1'r4hcta g 8,9012 9,112 13 15 297 1978 6 6 19,370 12,921 ' 112 12,643 9966 10,835 13 4 14 27 5,793 414° ,hiilVcB '-,84S 5, 001 5,583 6,141 ,&833 7,969 3,8/1 8,794 8,720 9,492 6,578 4,232 5,682 5,020 8,026 7, 2) 3,9(1) In

Ikl,nttin 3,848 2,32.3 2,503 5,585 5,527 6,154 1,945 9,156 3,259 3,021 2,493 1,523 1,818 2,382 885 1,131 ) 5,793 -(tikr 850 756 1,026 1.669 2,937 5,255 344 13420 942 599 3,572 4,211 3,275 6,089 5,226 5,88 ) 5(W

T.x31 212,231 231,736 255,81 1395367 373,196 450,46 9 399,075 354,827 367,980 351476 297,927 3 599 258194 2.269 259,08 158,052 161 0[0

Vilme (In U.4

i1dltfxL) d/ (7.6) (8.3) (9.0) (10.2) (11.7) (14.3) (35.6) (16.2) (19.4) (43.8) (50.7) (54.7) ($S,I) (42.6) (62.8) (124.0) (116.4) (113.9)

al Ucre w-cassary, data prtor to 1971 liaw 1n nwryetted ftr llter, wlrtg x.uwrahx facto, at fnxot of teport.

c/ It to estioite8i that 101-201 of the sito. diesel IuportoJ in 1960 ad 1981, &A 20%-40X of the hmrcoe iqxted fun 1976 to 1981, usa mutd t of t1e <xxtry.jF ma 1971, value It 1i.1 fo.velfu eidwosn releaned to ntl umpailes fogr retoletsa IRta, oil-relted ervicta ae d nrAttan co dividmd. At preea, It I etiite1 tOat

pet lern ilrt plyenita accoit for approxnintely 0fiK of tle forelipi wdnp uul&ae to dil enl., bit theux M *edci %my to dltsagegt do tlyjents c a s *-to-ye~ar teksls.

Sareefm (I) EAC and tUgm1 Oatow A al Tra Re4itet (for 3965 to 1970).(2) I a it opertlg i la (fct 1971 to 1932).

Jln

-36 ANNEX5Table 5

UCZDA

AMSPOR? SECrIR M.ORAIMDUM

Tabi.. 5 - Annual setimated Road Mocor Vehicles b ve

Tear !a7" t Pickups 3wbses Cars btarcycl c s*w trcial o & * ther £uclud'1g TOAL

Tehicles Vans Secoocers Tractors, PlanC etc.

;97l 6795 4988 903 665 23,771 6161 1=27 44,510

1972 6617 5320 996 709 24,054 6235. 1331 45,262

1973 5978 4U36 .915 645 21,732 5654 1220 40,980

1574 5535 4542 902 611 20,025 5381 1560 38,256

1975 7210 5087 971 553 18,994 5132 1365 3S,352

1976 6135 4393 846 514 16,523- 5399 1298 34,158

1577 5755 4475 777 614 15,734 4562 1765 33,682

1957 5812 510l 839 779 15,757 4754 2252 35,294

1979 3216 3336 553 533 11,279 4459 1S14 25,290

1980 3519 3672 603 605 11,644 4725 2157 26,931

1981 3607 3689 620 675 10,656 4217 2174 25,638

1982 3529 3426 593 699 9,821 3926 2080 24,074

3Same: Ugandaxm-fcry of Transport

3avcmber 1983

UGANDATRANSPORT SECTOR HEMORANDUH

Table 6 - UGANDA RAILWAYSHotive Power and Rolling Stock

Rolling Stock LOCOMOTIVES

111gbi LowSource Covered Open Open Tank Coach Livestock Total Diesel Steam Total

Inherited from eAC 42 48 13 8 26 137 21 28 49

Acquired and delivered 380 74 20 420 46 30

Leas retired and lost -42 -48 -13 -8 -26 - -137 -7 -28 -33

Total available 380 - - - 20 20 420 62 - 62October 1983

Source. iUi8u-da RAilwayu Corporation.

Date: October 1983.

m m4{D L

o'tJl

UGANDATRANSPORT SEMTOR fMEORANDUNTable 7 - RAILWAY TRAFFIC

ITEH 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982

Passengers (No. X 000) 552 667 1,185 1,659 2,007 1,697 867 866 624 1,288 1,427 3,344

Goods forwarded 1,030 669 772 670 493 377 308 130 211 168 284 313(000 tons)

Goods recetved 786 584 1,036 918 949 767 363 287 N/A N/A N/A N/A('000 tons)

Livestock handled 69 147 107 1i8 49 5 5 37 39 23 27 18 13(No. X 000) co

Siource: luganda Railways Corporatton.

Date: October 1982

(D

-39 -

ANNEX 5Table 8

UGANDATRANSPORT SECTOR MEMORNDUM

Table 8 - UGANDA RAILWAYS - GOODS TRAFFIC BY TON

Jan-June1978 1979 1980 1981 1982 1983

Coffee 61190 41489 41036 102423 92123 43481Cotton 19282 4834 4539 1922 16418 2205Copper 11825 6256 273 NIL NIL NILGrains 9376 7633 30017 32850 40421 15651Animal feeds 8358 3192 1041 821 1182 NILCement 15163 6709 12972 10500 9010 4136Fertilizers and 1030 2126 1621 14589 2716 NILchemi cals

Iron and Steel 11328 7872 3071 4752 9329 194Lime and Limestone 2255 3643 1360 1341 1168 42Machinery 5831 1793 2065 1465 1949 102Motor vehicles 401 96 140 299 283 56Fuel 95208 73780 15479 10091 6004 577*Stone Aggregate 914 866 149 60 NIL NILSalt 29044 23821 11466 27094 12836 21531Charcoal 334 198 427 907 1038 598Textiles 414 32 524 9S5 650 10Timber 2113 1187 2052 1452 1710 338Tea 213 230'l 1466 1092 2239 799Hides and Skins 2798 56 374 1340 2454 1514Scrap metal 1934 555 4468 3996 105 53Sugar 10154 1526 . 5453 34183 21481 21962General goods 22173 18854 23777 27270 79860 24807Other 10248 4098 3949 5098 9614 13517

TOTAL 321606 212869 167719 284640 312590 151573

Source: UGANDA RailwaysDate: October 1983

-40-

ANNEX 5Table 9

UGANDATRANSPORT SECTOR

Table 9 - UGANDA RAILWAYSGOODS TWAFFIC

Tons carried Net ton-km

Month 1981 1982 1981 1982

January 16,650 29,587 4,015,161 7,398,841

February 15,522 20,795 2,769,078 5,551,433

March 14,450 29,516 3,505,032 6,642,654

April 13,375 .29,429 3,036,290 6,852,512

May 14,783 30,613 3,411,848 7,029,363

June 18,328 27,119 5,225,708 5,860,418

July 19,457 29,073 3,665,993 4,021,523

August 21,578 23,0:33 4,321,108 4,882,768

September 32,714 21,053 6,303,291 4,755,669

October 20,800 26,398 5,090,138 4,291,013

November 24,780 21,374 5,674,900 -4,911,813

December 21,676 24,600 5,669,716 4,256,364

TOTAL 234,113 312,590 52,688,263 66,954,371

Source: Uganda Railways

Date: October 1983

41 -

ANNEX 5Table 10

UGANDATRANSPORT SECTOR KEYORANDUM

Table 10 - UGANDA AIRLINES - Traffic 1981-1983

January-June1981 1982 1983

Passengers

International) 43572 17926 9329Regional ) 29570 12512Domestic 19000 1/ 2/ 14469

Passenger km (000):

International) 80855 103946 51483Regional ) 19001 8040Domestic 4600 1/ 2/ 3752

Air Freight(tons)

International) 5569 4995 2347Regional ) 891 365Domestic *4 1 2/ -

Freight ton km (000):

International) 24568 28347 12941Regaonal ) 629 290Domestic .1 1/ 2/ -

1/ Only January-June.2/ Traffic suspended during much of the year.

Source: Uganda AirlinesDate: October 1983

42

ANTEX 5-Table 11

UGANDATRANSPORT SECTOR NEXORANDUM

Table 11 - Recoverv Prograrn L983-85US$ million

Iailway 1982/83 1983/84 1984/85

Rolling Stock - 3.9 4.4

Permanent way - 1.1 8.0

Telecom - - 1.0

Diesel workshops 1.2 0.4 2.0

Wagon workshop - - 0.5

Sheds - - .1.0

Mechanical handling equipment _ - 1.0

Subtotal 1.2 5.4 17.9

Roads

Kampala-Masaka 1.7 2.5 1.7

Kampala-Jinja - - 5.6

Lake Katwe road 0.8 0.5 0.7

Malaba-Jinja 0.8 1.4 1.7

Mbarara-.atunzuru - - 2.1

Mbarara-Masaka - - 5.0

Mbarara-Rubaare - - 5.0

Road maintenance units - 1.2 5.1

Feeder road maintenance units 1.0 1.0 . 1.0

Other roads - - 4.5

Subtotal 4.3 6.6 32.4

Air Transport

Entebbe and Navaids 0.5 1.2 2.3

Water Transnort

Ferries - 0.6 0.6

Lake ports - 0.3

Subtotal - 0.6 0.9

Road Studies - 1.0

Kamoala Streets - 1.3 3.0

Total Transport 6.0 15.1 57.5

October 1983

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