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Business News of Friday, 8 September 2017


Railway sector critical for economic growth - Dr. Bawumia

Vice President Dr. Mahamudu Bawumia says effectively-run railway sector in Ghana will contribute to economic growth by significantly lowering the cost and time for moving goods and people, and by extension, ensuring economies of scale and reducing domestic production costs.

In addition, it will also open up the country and help enhance market access and opportunities

Vice president Dr. Bawumia who was speaking at the commissioning a railway sleeper plant on Thursday, September 7, 2017 at Dawa, Prampram in the Greater Accra region of Ghana, said the government of Nana Addo Dankwa Akufo-Addo is desired in ensuring that, the private sector operate in a predictable, stable business environment.

“The Atlantic Concrete Sleeper Plant which we are commissioning today gives expression to the President’s desire to transition the Ghanaian economy in the direction of greater local value addition. It is a much welcome project by LMI Holdings, and it will complement Government’s job creation initiatives”

“Railway sleepers are a critical component of Railway infrastructure. I am informed that when operating at full capacity, the Atlantic Concrete Sleeper Plant will save Ghana up to US$27 Million per annum in foreign exchange. This is very significant.”

A 12-kilometre (km) private railway project which is to link the Ghana Free Zones enclave to the Tema Harbour stalled due to problems associated with the issuance of a licence and a permit by the Ghana Railway Development Authority (GRDA).

The project, which is sited in the Free Zones industrial enclave in Tema, will also serve as a direct link for the transportation of manufactured goods to the Tema Harbour for export.

He said he will dialogue with the Ghana Railway Authority to prepare license and whatever permits needed for the project.

“I have just been informed that LMI does not have a licence to build a railway line, even though they have the capability to build one. I will be talking to the Ghana Railway Authority to prepare your licence and whatever permits you need. We are not going to allow bureaucracy to stand in the way of developing this country.”

The development of the entire Dawa Industrial City project will provide 2,000 acres of industrial land with first class infrastructure to facilitate the establishment of industrial projects by investors.

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