The line is expected to ease transportation of cargo and boost investment in the once war-torn district. The re-commissioned railway line is also set to further enhance Gulu as the hub for trade and agriculture in the northern part of the country.
Speaking at the re-commissioning of the railway line last week, President Museveni urged the people of Gulu to take advantage of the railway line and boost their agricultural potential.
"What we should do is to ensure that every homestead has got something to sell, so that we produce the crops that will be carried by this railway."
The district, known for cassava and simsim growing, is characterised by huge sects of uncultivated land. This has made Gulu hugely dependant on petty businesses and a budding tourism sector, especially in the hospitality sector. With the re-commissioning of the railway network, which covers the towns of Tororo, Mbale, Kumi, Soroti, Lira, Gulu and Pakwach, there have been calls for the locals to engage in commercial agriculture.
The Gulu LCV Chairman, Martin Ojara Mapenduzi, sees the railway as providing the best opportunity for agricultural development after years of poor road infrastructure.
"Our road network has had terrible consequences on businesses and lives. This gives us the best opportunity. The district lies at the centre of arable land, making it the best potential hub for agri-business."
The railway line, which was last in operation in 1993, is now open for business following a first phase operation of repairs on the track, bridges, culverts and community engagements. This refurbishing cost $2m (Shs 5.2bn), according to Rift Valley Railways - the company with the concession to revive the railway line - and took 10 months to complete.
Rift Valley Railways (RVR) now plans to invest close to $14m (Shs 36.4bn) in a second phase to increase load capacity. The third phase by RVR will involve replacing vandalised locations plus increasing the wagon fleet.
The improvement of the railway has already eased the transportation of goods to South Sudan and eastern Democratic Republic of Congo, according to officials.
Gulu district Woman MP Betty Ochan hopes the railway line will now attract more investments in the region, which will ultimately deal with the high rates of unemployment and poverty.