This is a best prospect industry sector for this country. Includes a market overview and trade data.
General Overview
The Government of Ghana has made revamping the country’s railway network a priority and established the Ministry of Railway Development to oversee the development of the sector. The Ghana Railway Development Authority is the implementing authority. The country’s railway infrastructure has seen little development since its independence in 1957 and has deteriorated to the point that a majority of the 940 kilometers of narrow-gauge rail is out of service.
The Government is focusing on rehabilitating and extending existing tracks developing completely new rail lines for both passengers and freight. Rail is essential for the transport of goods and people, local development, international trade, and job creation. Ghana’s Railway Master Plan envisages increasing the coverage of the railway to over 4,000 kilometers in 33 years at an estimated investment of US$21.5 billion. In addition, Ghana needs to update freight and passenger rolling stock, at an estimated cost of US$1.2 billion over the same period.
The first stage of implementation includes the rehabilitation of 668 kilometers of the existing narrow-gauge lines. The subsequent five stages include the addition of new standard-gauge rail lines. The plan is being reviewed in light of the discovery of mineral resources in several parts of Ghana to ensure sufficient supporting infrastructure to move mineral resources to markets.
The specific lines to be worked on during the various phases and the associated costs are as follows:
|
PHASE 1: Rehabilitation of existing line |
667.6 |
$2,803,920,000 |
|
1W - Western Line |
340.0 |
1,428,000,000 |
|
1 - Takoradi - Tarkwa - Dunkwa - Kumasi |
266.8 |
|
|
2 - Dunkwa - Awaso |
73.2 |
|
|
1E - Eastern Line |
327.6 |
1,375,920,000 |
|
1 - Accra - Kumasi |
303.9 |
|
|
2 - Achimota - Tema |
23.7 |
|
|
PHASE 2: Eastern “A” Expansion |
1,161 |
$6,501,600,000 |
|
2W -Takoradi-Kumasi |
266 |
1,489,600,000 |
|
2E - Accra - Kumasi |
300 |
1,680,000,000 |
|
2C - Kumasi - Techiman - Tamale |
383 |
2,144,800,000 |
|
- Tamale - Paga |
212 |
1,187,200,000 |
|
PHASE 3: Transversal Expansions |
484 |
$2,710,400,000 |
|
1 - Tamale - Yendi |
102 |
571,200,000 |
|
2 - Fufulsu - Sawla |
126 |
705,600,000 |
|
3 - Techiman - Atebubu - Kwadwokurom |
198 |
1,108,800,000 |
|
4 - Nyinahin - Kumasi |
58 |
324,800,000 |
|
PHASE 4: Trans Ecowas Expansion |
498 |
$2,788,800,000 |
|
1 - Aflao - Tema - Accra |
185 |
1,036,000,000 |
|
2 - Accra - Takoradi |
212 |
1,187,200,000 |
|
3 - Tarkwa - Omanpe |
101 |
565,600,000 |
|
PHASE 5: Western Expansion |
729 |
$4,082,400,000 |
|
1 - Dunkwa - Awaso |
73 |
408,800,000 |
|
2 - Awaso - Techiman |
220 |
1,232,000,000 |
|
3 - Techiman - Sawla |
223 |
1,248,800,000 |
|
4 - Sawla - Hamile |
213 |
1,192,800,000 |
|
PHASE 6: Eastern “B” Expansion |
468 |
$2,620,800,000 |
|
1 - Tema - Ho |
130 |
728,000,000 |
|
2 - Ho - Yendi |
338 |
1,892,800,000 |
|
TOTAL INVESTMENT COST (FINANCIAL) |
[Km 4,007.6] |
$21,507,920,000 |
Opportunities for U.S. companies
Although the initial parts of this massive infrastructure drive have been dominated by Chinese, Indian, European, South African, and Ghanaian companies, there are still numerous opportunities for U.S. companies involved in the provision of railway technologies in the above-mentioned projects, provided they arrange their own sources of funding. Financing is a critical factor. The provider of products or services is generally expected to provide financing. The phases have mainly been financed via loans and Public-Private Partnerships, using the Build Operate and Transfer model. While there are some tenders for various phases and projects of the railway upgrade and expansion project, more often, deals are signed using sole-source procurements. Please contact the U.S. Commercial Service Ghana for the latest information regarding these rail sector projects.
Contact: U.S. Commercial Service Ghana Commercial Specialist PaaEkow Quansah at office.accra@trade.gov or +233 (0) 30 274 1329 for more information.
Resources
Ministry of Railways Development (mrd.gov.gh)
Ghana Railways Development Authority (mrd.gov.gh)
Ghana Railway Company Ltd (mrd.gov.gh)