Mines Chamber groans over deplorable rail lines

The deplorable state of the Western rail line remains a major problem for bulk producers of manganese and bauxite, forcing them to use costlier road transport to haul their minerals and equipment, according to Dan Owiredu, President of the Ghana Chamber of Mines.

 

Speaking at the chamber’s 85th annual general meeting in Accra, he said despite Government assurances through major policy statements that the Western rail lines would be fixed, the promises have regrettably not been fulfilled.

“On two occasions, the Ghana Manganese Company has offered to directly invest in the rail infrastructure; but until now, the authorities are yet to accept the company’s offer,” he said.

As a result, he added, Ghana Bauxite Company has completely stopped hauling goods by rail and solely transports its ore by the less cost-effective road mode, while Ghana Manganese Company uses the rail on a reduced operational level.

 “Naturally, this has adversely impacted realisation of these companies’ strategic objectives.   

   The chamber continues to advocate for rehabilitation of the Western rail lines as the inherent benefits to the country would be enormous, given that its services will extend to passenger travel and other sectors of the country,” Mr. Owiredu said.

B&FT has gathered that rehabilitation of the Western railway, which is envisaged under the US$3billion China Development Bank (CDB) loan agreement, will cost an estimated US$400million.

President John Dramani Mahama said last year in his state-of-the-nation address that his Government is on course to revive the defunct rail system.

“There will be significant improvement in our railway network in the next three years. Government believes that the private sector has a role to play in the ongoing modernisation of the rail sector. 

“An example is the rehabilitation of the Accra to Tema railway network, Kumasi to Ejisu railway line, Accra-Nsawam railway line, and Takoradi to Kojokrom railway network,” he said.

In 2010, a contract was signed to construct a railway line from Paga (on the border with Burkina Faso) to Kumasi plus a branch from Tamale to Yendi, but nothing realistic appears to be ongoing.

The operation of the country’s rail lines began in 1898 under the Gold Coast Civil Service, with headquarters in Sekondi.

The headquarters was transferred to Takoradi after the building of Takoradi Harbor, and railways and ports were jointly administered under the Ghana Railways and Ports Authority.

In 1976, SMC Decree 95 created the Ghana Railway Corporation to separate railways management from ports. The company enjoyed the status of a public corporation until 19 March 2001 when it became a limited liability company.

Much of Ghana’s 953-kilometre rail network was built to support agricultural and mining activities in the western, central and eastern zones of the country, but in the last few decades they have failed to yield the impact expected due to their deterioration -- brought about by lack of fresh investment to modernise the system.