Ghana Railway Company to be divested in 2004

Takoradi, July 19, GNA - The divestiture of the Ghana Railway Company (GRC) to provide efficient railway transportation in the country would be effected in February 2004. The Divestiture Implementation Committee has invited bidders and it is expected that the award of the contract would be completed in November this year. Mr. Emmanuel Opoku, Managing of GRC, who disclosed this explained that the divestiture of the GRC would not be an outright sale of the company.

The government would continue to own the infrastructure and facilities of the company, which would be rented to the investor. He was briefing members of the Ghana Shippers' Council from the Central, Western and Brong Ahafo regions who undertook a tour of the GRC and the Takoradi Port at Takoradi on Friday. The tour, among others, was for members of the Council to get first hand information about service improvement, expansion programmes, prospects and tariff structures of the two companies.

Mr. Opoku said since all theassets of the GRC would still be owned by the government, a body to be known as the Railway Authority would be formed to monitor the operations of the company under the investor. A Railway Development Fund would also be instituted. The expansion and modernisation of the company would be part of the contract with the investor, according to Mr. Opoku, who said however, that the former would be a long-term objective.

The proposed expansion programme would enable GRC to extend its services to areas like Tamale and Hamile in the Northern part of the country, Aflao in the Volta Region and Sunyani in the Brong Ahafo Region. Existing railway lines would be connected to some countries in the Sub-region, including Cote de'Ivoire, Burkina Faso and Togo.

At the moment the company is exploring the possibility of using the facilities of some public and private institutions as transit sheds to increase its warehouse capacity for the transportation of transit goods from Takoradi to Kumasi. The company is also sourcing for funds to rehabilitate the Accra, Tema and Kumasi railway line, Mr. Opoku said.

Mr. Opoku said on-going projects include the rehabilitation of the Takoradi-Awaso railway line and the supply of 43 toner mineral wagons to facilitate the transportation of bauxite and other goods to the Takoradi Port for export.

At the Takoradi Port, Mr. Paul Ansah Marketing and Service Manager told members of the Shippers' Council that the port would soon embark on a 250- million dollar modernisation and expansion programme. The programme, which includes dredging and provision of modern equipment, would make the Takoradi Port the favourite port of call for ships in the sub-region by 2010. Already, 17 companies have been invited to bid for the contract, whilst ten more have expressed their desire to apply for the job, Mr. Ansah said. The port Authorities have introduced many incentive packages and encouraged warehouse operators to rehabilitate their facilities to entice shippers and landlocked countries to use the port.

Mr. Ansah said by August this year, the Customs Excise and Preventive Service would introduce a new system- the Gcnet, at the port to facilitate the early clearance of goods. He said high duties on imported haulage trucks, which were free, is one of the problems militating against the continued use of the port by shippers, especially those from landlocked countries and appealed to the government "to do something about it". The port has privatised some of its services to enhance efficiency, Mr. Ansah said.