Africa Construction Logistics Rail

Ghana: Transnet signs Western Railway restoration agreement

Transnet, South Africa’s logistics giant has signed an important agreement with Ghana Railway Company Limited (GRCL) and Ghana Railway Development Authority (GRDA), for the restoration of the Western Railway Line in Ghana.

The ambitious project, at the center of a negotiation lasting more than a year which ended with the signing of a joint declaration of intent between the Minister of Railway Development of Ghana, Joe Ghartey and the Minister of Public Enterprises of South Africa, Pravin Gordhan , aims to reduce road traffic by exploiting existing railway assets.

In particular, the aim is to implement extraordinary maintenance plans, as well as to modernize the rolling stock. This will be an important opportunity for local companies operating in the transport business to grow and will also be an excellent opportunity for the Ghanaian government to reduce public spending on logistics.

Petrus Fusi, Transnet managing director stated “Through this partnership, Transnet believes that it will contribute to the re-launch of Ghana’s rail infrastructure and operations, restoring maximum reliability. This should lead to a shift in freight transport from road to rail and contribute to the reduction of Ghana’s logistics costs”.

The first step, as usual in projects of this nature, will be to carry out technical due diligence – performed jointly by Transnet and the two Ghanaian entities – in order to take a good picture of the state of things so they can begin planning and effectively designing the intervention.

The agreement between Ghana and Transnet is hardly surprising to industry experts as, just a year ago (November 2018), Transnet took over from General Electric as the main partner in the Nigerian railway concession.

Luigi Magnante

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