Ghana finalises rail freight deal to move port cargo and ease roads

The Government of Ghana, through the Ministry of Transport and the Ghana Railway Development Authority (GRDA), is aggressively expanding its national rail cargo infrastructure. As part of a targeted strategy to revitalize the country's railway sector and strengthen freight transportation, the Minister for Transport, Hon. Joseph Bukari Nikpe, has signed a pivotal commercial off-taker agreement with MES Logistics. This partnership marks a significant milestone in establishing Ghana's first structured container rail freight business, focusing explicitly on the heavy haulage of industrial cargo.

Addressing the media regarding this development, Hon. Bukari Nikpe explained that the partnership with MES Logistics will enable the movement of cargo by rail, helping to decongest the country’s ports and major roads, lower logistics costs, improve supply chain efficiency, and reduce road accidents caused by heavy cargo trucks. He noted that the newly acquired rolling stock, consisting of two heavy freight Class 56 locomotives and twenty container wagons, was procured for approximately GH₵37.6 million (equivalent to $3.18 million). According to official Ministry communications, these assets are revenue-generating freight machinery engineered specifically to move containers and industrial cargo between Tema Port and Mpakadan.

The Minister further stated that the acquisition and deployment of the two locomotives and twenty wagons represent a sound economic investment that will support industrial growth and generate sustainable revenue for the railway sector through efficient operations and proper maintenance. Financial projections indicate that the secured off-taker agreement is expected to generate approximately $3.5 million annually. This robust revenue stream ensures that the initial rolling stock investment cost will be recovered within just two years, while providing at least fifteen additional years of productive commercial service under a strict, routine maintenance regime.

To guarantee the immediate readiness of the Tema-Mpakadan railway line for these intensive freight operations, the GRDA has already deployed essential lifting equipment on-site. The current inventory includes two reach stackers capable of loading and offloading containers directly to and from railway wagons, alongside five heavy-duty forklift machines to support container handling, terminal operations, and associated logistics activities. Steps are also being taken to procure two gantry cranes to further solidify long-term handling capacity.

Hon. Bukari Nikpe urged the Ghana Railway Development Authority and its partners to manage the assets prudently to ensure operational efficiency, financial sustainability and continued expansion of rail services nationwide. Hon. Bukari Nikpe reiterated Government’s commitment to transforming the railway industry into a key driver of economic growth, trade facilitation and national development, repositioning the rail sector as a productive asset capable of supporting the nation's broader economic goals.