'Funding remains key challenge for railway transport'

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