Uganda’s coffee export sector has received a boost after Uganda Railways Corporation (URC) returned to the transportation of coffee cargo by rail, opening a new cost-saving option for exporters after an eight-year absence.
URC has successfully moved its maiden coffee export consignment by rail to the Port of Mombasa, marking the corporation’s return to coffee haulage since its last similar journey in 2018.
The development comes at a time Uganda continues to expand its coffee export volumes, with data from the Ministry of Agriculture, Animal Industry and Fisheries showing that the country exported 8.6 million bags of coffee between June 2025 and May 2026.
Although URC did not handle any of these volumes during the period, the corporation says its return to the coffee export logistics chain will provide exporters with a cheaper and more efficient alternative to road transportation.
The first consignment transported by rail comprised 29 containers—28 twenty-foot containers and one forty-foot container—with a total weight of 606.6 tonnes.
URC said the shipment demonstrates the financial advantage of rail transport, noting that moving the same cargo by road would have required approximately 17 heavy-duty trucks at an estimated cost of USD 84,500 (about Shs304 million).
Instead, the corporation transported the entire consignment using a single train at a cost of USD 21,570 (about Shs78 million), saving the exporter USD 62,930 (about Shs226 million) in freight charges.
“We are pleased to announce that we are now back in the coffee export business, having successfully transported our maiden coffee export consignment by rail. A URC train last made a similar journey to Mombasa in 2018,” the corporation said.
Beyond the cost savings, URC noted that the return of rail freight could have wider benefits for Uganda’s coffee industry by improving competitiveness in international markets.
The corporation said moving export cargo by rail reduces dependence on multiple truck movements, easing pressure on highways, lowering carbon emissions and improving safety along transport corridors.
“For URC, this marks a welcome return to coffee haulage and a meaningful step in diversifying our cargo portfolio. More importantly, it demonstrates how rail can make Ugandan exports more competitive on the global market while contributing to Uganda’s broader economic development agenda,” URC said.
Coffee is Uganda’s leading export commodity and a major source of foreign exchange earnings, supporting millions of farmers involved in production across the country. Industry players have long identified transport costs as a key factor affecting the competitiveness of Ugandan coffee on the global market.
With URC’s renewed involvement, exporters could increasingly rely on rail to move larger volumes of coffee more efficiently from production areas through the Northern Corridor to the Mombasa port, where the commodity is shipped to international markets.
The corporation said the successful shipment represents a step toward expanding its cargo portfolio and strengthening rail’s role in Uganda’s trade and export growth strategy.
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