According to a railway official on Friday, the line will lower the cost of carrying products to the country's north, South Sudan, and the Democratic Republic of the Congo (DRC).
The repair comes after Uganda cancelled a $2.2 billion SGR contract with China Harbour and Engineering Company Ltd earlier this year.
According to John Linnon Sengendo, spokesman for the state-run Uganda Railways Corporation, "our ambition is to switch all long-distance bulk cargo transportation from roads to rail in a few years because rail is cheaper in terms of cost and time."
Since rail is less expensive both in terms of money and time, our goal is to switch all long-distance bulk freight transportation from roads to rail in the next years, according to John Linnon Sengendo, spokesman for the state-run Uganda Railways Corporation.
The line, which originates in Kenya's seaport of Mombasa and is a part of the East Africa rail system, was constructed in the early 20th century during British colonial control but has not been in use for about 40 years.
Sengendo said that for 200 billion shillings ($55.48m) granted by the Ugandan government, China Road and Bridge Corporation will repair the old line within the following two years.
The reconstructed line would link the eastern Ugandan town of Tororo, which is close to the Kenyan border, with the western Ugandan town of Gulu.
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