Government
says funding remains the key challenge for railway transport infrastructure
provision in the country.
Approximately
133.6 kilometres (km) representing 14.1% of the entire rail network of 947 kilometres
that is currently operational is faced with an obsolete
network and poor track infrastructure, resulting in the closure of greater part
of the Western and Eastern lines and the entire Central line -- leading to a high
incidence of derailments that lead to loss of operational hours and damage to
rolling stock.
Mr.
Eric Tetteh-Addison, Ministry of Transport, making a presentation on the ‘Development
of the Boankra Inland Port & Eastern Railway Line and Public Private
Partnership (PPP)’ project, said more
investments were channelled to road infrastructure development at the expense
of rail infrastructure after the 1970s, coupled with the introduction of heavy
haul vehicles; and that government is currently
carrying out a plan of redeveloping and modernising the country’s railway system,
both at the national and regional levels.
Mr. Tetteh-Addison explained that the need for rail transportation has become
obvious as commerce and economic growth starts in earnest within the country.
He said the objective of building the country’s
railways sector is largely to transport raw materials and heavy equipment for
the mining companies, which will open up the economy.
Conservative estimates indicate that
the country’s huge infrastructure deficit requires sustained spending of at
least US$1.5billion per annum over the next 10 years to address the shortfall.
Commenting
on the Boankra Inland Port and Eastern Railway Line project, Mr. Tetteh
Addision said the initiative will acquire a private contractor to build and
finance a port 27km from Kumasi, along with rail development to transport goods
between the northern regions and the Tema and Takoradi ports.
On
completion, the Boankra project will also serve as a trading hub, drawing
business from shippers in landlocked Mali, Niger and Burkina Faso -- adding
that like other PPPs, when it reverts to public control it will leave the
country with a piece of major regional infrastructure that government might not
have been capable of financing or building on its own.
Available data show that the rail sector commanded
an over-70% market share of freight and passenger transport in the country during
colonial days until the 1970s, and carried over 2 million tonnes of freight and 8 million
passengers annually in the 1960s and 1970s.
However, due to inadequate funding for
maintenance, the rail network started to deteriorate; leading to the diversion
of freight traffic onto roads, exacerbating deterioration of the roads.
The Ghana Chamber of Mines in recent
times has aggressively been advocating rehabilitation of the railway system, notably
the Western rail lines. The officials observed that benefits to the country
would be enormous -- given its services will extend to passenger travel and
other sectors of the economy.
“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,” according
to the chamber of mines.
As a result, the 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 railway
on a reduced operational level. This has adversely impacted realisation of
these companies’ strategic objectives.
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 Mahama in his 2012
state-of-the-nation address pledged a massive revival of 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.
“Examples are 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.
Previous
attempts to reform the rail sector
In 1997, government
considered that a rail concession arrangement would be the preferred form of
private sector participation to attract private investment to improve railway
performance.
In February 2002
the actual process for selecting a concessionaire commenced, and tenders were
floated by M/S CPCS Transcom of Canada for interested consortia to submit
proposals.
The proposed
concession was to entail operation of the entire network. The process was never
completed due to government’s inability to arrange for an estimated US$27million
needed for labour rationalisation. As
a result, government decided to de-list the railway from its divestiture list
in 2005.
Operation
of the country’s rail lines began in 1898 under the Gold Coast Civil Service,
with headquarters in Sekondi.
The
headquarters were transferred to Takoradi after the building of Takoradi
Harbour, 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 19th 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.
Fast Facts
Total route length of 947km (593 miles)
Track length of 1,300km (807 miles)
Track gauge of 1.067 metres (3ft.6ins) with a maximum axle load of
16 tonnes
Except for the 30-km
Takoradi-Manso section, which is double-track, the network is a single-track
system of 1067 mm (3' 6") gauge (cape or narrow gauge)
Railway Network is divided into 3 main lines with branch lines
Main Lines are:
Western Line: 340 km
Central Line: 240 km
Eastern Line: 330 km
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