McDan Group and the Ghana Ports and Harbours Authority (GPHA) have signed a memorandum of understanding (MoU) to develop national capabilities in marine transport and logistics.

The signing ceremony took place in Tema, marking a significant step towards enhancing domestic maritime infrastructure.

Established in 1986, GPHA is responsible for the planning, development and regulation of ports in the country.

McDan Group, an indigenous conglomerate, operates in shipping, freight forwarding customs clearance, cargo and port handling, transportation and haulage, fixed based operations, real estate, construction, civil engineering, agriculture, salt mining, among others. McDan Group’s salt production operations are run through its subsidiary, ElectroChem Ghana Limited.

With the acquisition of a 30-year renewable lease for the Ghana Highway Authority’s ferry maintenance and operations terminal site in Ada, McDan plans to develop the “ElectroChem Terminal, Port of Ada”. This project aims to streamline the management and export of bulk natural and processed salt, addressing the growing regional and global demand for salt.

The collaboration is expected to improve Ghana’s cargo services management capacity, reduce operational costs, and bolster socio-economic activities, particularly within the salt business cluster. The planned ElectroChem Terminal will include essential facilities for bulk salt handling and processing, ultimately enhancing accessibility for export to international markets.

Dr. Daniel McKorley, Executive Chairman of McDan Group, commented on the importance of the MoU, stating: “This agreement reinforces our commitment to developing Ghana’s marine sector. By investing in infrastructure and human capital, we are not only improving logistics but also contributing to the local economy”.

The project will include feasibility studies to assess technical, economic, and environmental viability, as well as the development of navigation channels and terminal facilities. Key components will involve constructing quay walls, storage facilities, and upgrading the road network connecting Ada to major highways, thus facilitating efficient transportation of salt products.

The MoU also establishes a Joint Project Development Team to oversee technical meetings, stakeholder engagement, and the execution of various services agreements. Both parties will work closely to ensure the project’s successful implementation, aiming for further agreements to enhance collaboration.

With ElectroChem holding the largest salt mining concession in Africa, currently producing 650,000 tonnes annually, and a production capacity exceeding 2 million tonnes annually, the development of the Ada port is poised to reduce Ghana’s salt import dependency and enhance its export capabilities. This initiative is expected to create jobs, strengthen local economies, and foster sustainable growth in the region.

As the project progresses, McDan Group aims to build a state-of-the-art facility that includes warehouses, maintenance docks, and residential amenities, contributing to the overall development of the Ada community.