BY

HON. DZIFA AKU ATTIVOR

MINISTER FOR TRANSPORT

REPUBLIC OF GHANA

Introduction Ghana Shared Growth & Development

Agenda(GSGDA)

National Transport Policy

Significance of Transport to Economic Growth

State of Land Transport Infrastructure in Ghana(Road & Rail)

Challenges

Key Road and Rail Projects Opportunities for Partnership

Conclusion

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Ghana is a sub-Saharan coastal nation within West Africa

Bounded on the south by the Gulf of Guinea, is bounded on the north by Burkina Faso, on the east by Togo and on the west by Cote D’Ivoire

Total land area of 238,540 km2 and about 536km width, with Accra, a coastal city as the Capital

Governance by multi-party democracy with a constitution that guarantees freedom and liberties to all persons

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Population of about 24.7million with English as the official language

Ghana attained Lower Middle Income Status in 2012

Nominal GDP estimates for 2012 was Ghc73.1billion

Ghana’s National Economy grew by 7.9% in 2012

By first quarter 2013, economy had grown by 6.7 %

Inflation rate as at May, 2013 was 11.1%5

The Ghana Shared Growth & Development Agenda(GSGDA) is Government’s Medium Term National Development Framework

The GSGDA is anchored on 7 main thematic areas

The Transport Sector falls under the infrastructure and human settlement thematic area out of which has been developed the National Transport Policy(NTP)

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1. Ensuring and Sustaining macroeconomic stability

2. Enhanced competitiveness of Ghana’s Private sector

3. Accelerated agriculture modernization and natural

resource management

4. Oil and gas development

5. Infrastructure, energy and human settlement

development

6. Human development, employment and productivity

7. Transparent and Accountable Governance 7

The NTP has 7 broad goals namely;1. Establish Ghana as a Transportation Hub within the West

African Sub-Region

2. Create a sustainable, accessible, affordable, reliable, effective, efficient, safe and secure transport system that meets user needs

3. Integrate land use, transport planning, development planning and service provision

4. Create a vibrant investment and performance-based management environment that maximizes benefits for public and private sector investors

5. Develop and implement a comprehensive and integrated Policy, Governance and Institutional Framework

6. Ensure Sustainable Development in the Transport sector; and

7. Develop adequate Human Resource and apply new Technology.

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The Vision for Ghana’s Transport Sector is to:

To provide an integrated, efficient, cost-effective affordable and sustainable transportation system that will respond to the needs of society, supporting growth and poverty reduction, and capable of establishing and maintaining Ghana as a transportation hub of West Africa

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Infrastructure key to propelling economic growth and sustainable poverty reduction

World bank estimates that to achieve 7% growth rate to combat poverty, sub-saharan countries need to invest 5% of GDP in infrastructure

Transport infrastructure investments enhances socio-economic development

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Improvements in roads and rail infrastructure facilitates the movement of people, goods and services from the hinterlands and farming communities to the city centres for consumption and to feed agro-based industries and for export.

Improved rail infrastructure supports the export of mineral ores to Ghana’s Ports and makes our commodities competitive on the world market

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Road & Rail infrastructure creates opportunities within the transport and logistics supply-chain leading to job creation and poverty reduction

Land Transport facilitates the movement of goods from Ghana to our land locked neighbours of Burkina Faso, Cote D’Ivoire and Niger

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The Policy oversight responsibility for the Transport Sector is handled by 2 Ministries

MINISTRY OF TRANSPORT

Has oversight responsibility for all the modes of transport, except road Infrastructure

MINISTRY OF ROADS & HIGHWAYS

The Ministry of Roads & Highways has oversight responsibility for the development of road infrastructure in Ghana

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Rail Infrastructure

Total route length of 947km(593 Miles) Track length of 1,300km (807 Miles) Track gauge of 1067 (3ft.6ins) meters with a maximum

axle load of 16 tonnes Railway Network is divided into 3 main lines with

branch lines Main Lines are;

- Western Line : 406 Km

- Central Line : 237 Km

- Eastern Line : 334 Km

Only 133.6km representing 14.1% of the entire network of 947 is currently operational

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Western Rail Line

The Western line is the main stay of the rail network in Ghana

Used to haul mineral ores,(manganese, Bauxite, Timber, cocoa etc)from the mining communities to the Port of Takoradi for export

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Eastern Rail Line

Viability of the proposed Inland Port at Boankra is linked with the reliability of the Eastern Line

Mineral deposits like bauxite, limestone, diamond and gold are located along this line.

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Central Line

Linked to Western and Eastern Lines respectively

Main link to communities along the line for access to the Greater Accra and Western Region

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Year No. of Pax2008 9502009 11202010 13772011 13202012 967

Year Timber Bauxite manganese 2008 15.3 150.77 139.462009 1.42 88.41 64.532010 0 73.21 372.592011 0 20.94 615.722012 0 0 617.8

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Funding remains key challenge to Rail Transport Infrastructure provision in Ghana

Obsolete network, operating system & rolling stock

Poor track infrastructure resulting in the closure of greater part of the Western and Eastern lines and the entire Central line

High incidence of derailment leading to loss in operational hours and damage to rolling stock

Due to the very poor condition of the Western Line, haulage of bauxite and manganese are currently by road

Resultant Road Accidents and damage to road infrastructure (high road maintenance cost)

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Establishment of Ghana Railway Development Authority(GRDA) under Railway Act, Act 2008, Act 779 passed in 2008

GRDA is regulator of railway sector and manager of railway fixed assets

Government policy to allow competition in rail services provision

Development of operational terminals to be opened to private sector participation

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Short Term to Medium Term Master Plan Studies for development of entire railway

network almost completed

Rehabilitation of the Western Rail Line – US$1.2 billion(Feasibility Studies completed) Including Rolling Stock

Rehabilitation of Sub-urban Rail Lines Accra-Nsawam - US$ 120 million Takoradi-Kojokrom-Sekondi - US$ 165 million Kumasi-Ejisu - US$ 100 million

Rehabilitation of locomotives and rolling stock to improve operations

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Re-construction of the Western Rail line from Takoradi to Kumasi on a standard guage

Pre-feasibility studies completed for Eastern Line

Packaging of development of Eastern rail line and Boankra Inland Port on Build Operate Transfer(BOT) basis

Feasibility studies for Tram services in Accra

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Feasibility studies for the rehabilitation of the Eastern and Central Lines

Feasibility studies for expansion and construction of the rail lines to the north

Rehabilitation of the Eastern and Central rail lines

Construction of Proposed ECOWAS rail line along the Coast from Nigeria to Cote D’Ivoire

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Road Transport remains the most predominant mode of transport accounting for over 90% of passenger and freight movement and the road infrastructure remains a backbone of the economy

Road Infrastructure National Road Network of 68,067 kilometers as at end

of 2012 and can be classified as follows:

Urban Road Network - 12,400 km Feeder Road Network - 42,190 km Trunk Road Network - 13,477 km

Ghana’s present road condition mix as at end of 2012

50% Good 30% Fair 20% Poor

TOTAL (KM) %RIGID PAVED ROADS PORTLAND CEMENT CONCRETE 55 0.08%

ASPHALTIC CONCRETE 2,945 4.33%BITUMINOUS SURFACE TREATMENT 11,715 17.21%

35,770 52.55%17,583 25.83%68,067 100.00%TOTALS

PAVEDFLEXIBLE PAVED ROADS

GRAVELEARTH

UNPAVED

SURFACE CLASSES

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The delivery of road infrastructure faces many challenges in spite of large investments made in the past 20 years

Inadequate budgetary allocation for road infrastructure provision

Inadequate revenue to cover cost of routine and periodic maintenance

Poor axle load regulation and enforcement leading to rapid deterioration of road infrastructure

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Tariff Exemption: 100% duty exemption for production equipment.

Investment law guarantees 100% transfer of profits, dividends, etc.

Membership of the Multilateral Investment Guarantee Agency [MIGA] of the World Bank.

Tax holidays: 3-10 years depending on sector; 10years for free zones with 8% corporate tax thereafter.

Endowed with natural resources and high literacy rate with friendly people, it is the investor’s dream.

More information at www.gipc.org or www.gfzb.com31

Public Private Partnerships have become the preferred vehicle by which most Governments in both developed and developing Countries get critically needed socio-economic infrastructure constructed

Government is committed to this objective and sees the private sector as partners for socio-economic development

Government has consequently developed a PPP policy framework to guide private sector investments in infrastructure Projects

Government’s objective for the Transport Sector under the National Transport Policy is to create an enabling environment to attract the private sector to invest in the provision of Transport infrastructure and services(www.mofep.gov.gh/division/pid)32

Government of Ghana sees the Private sector as partners for Economic development.

As indicated earlier, the large mineral deposits existing along the corridors of the rail systems create the desired opportunities for investments in rail infrastructure to yield the necessary returns on any investments

Therefore I wish to use this opportunity to extend an open invitation to the investor community to explore opportunities for Cooperation in the Transport Sector

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