Kampala — Construction of the controversial Tororo Inland Port has started. Great Lakes CFS, a Kenyan firm, is doing the work, a trade ministry official said while responding to reports that some firms were protesting the award of the contract.

"I have not heard anything. Those must be speculators because as far as I know, the contractor has already started work," he said.

Great Lakes is owned by Mohamed Jaffer and Ashok Doshi of Grain Bulk Handlers and Doshi Ironmongers, respectively.

It had won the tender earlier, but the Uganda Inland Ports (UIP) objected, claiming the firm did not follow the procurement laws.

UIP said it had been licensed to operate a similar facility at the Namanve Industrial Park, adding that the monopoly granted to Great Lakes would make it lose business.

The project has led to friction among sector players. Its supporters say it will make it easier for smaller players, who find it expensive to go to Mombasa, to do business.

Those against it say the monopoly will harm other players in the sector. They want the Government to ensure a levelled field for all as it is in the telecom sector.

They also say it will portray Uganda as an unreliable partner for encouraging more than 10 firms to invest in ICDs and then abandoning them and UIP.

The project is supported by the Kampala City Traders Association and the Uganda Clearing and Forwarders Association, the former trade minister, Janat Mukwaya and businessmen Godfrey Kirumira and Tom Mugenga. Kirumira and Mugenga are said to be its directors.

The Uganda Manufacturers Association, the Uganda Freight Forwarders' Association Uganda Revenue Authority and the Private Sector Foundation of Uganda are against the project, saying it will exclude other players.