Ghana Secures $21m EU Grant for Tema-Mpakadan Rail
Ghana has secured a US$21 million grant from the European Union to complete outstanding works on the Tema-Mpakadan Railway Line, a major boost to the country’s railway modernisation agenda and efforts to improve freight movement, trade and logistics.
Chief Executive Officer of the Ghana Railway Development Authority (GRDA), Dr. Frederick Appoh, disclosed this while speaking to the media. He explained that the grant will finance the remaining infrastructure required to fully operationalise the railway line and unlock its full economic potential.
According to Dr. Appoh, the funding will support the completion of critical works needed to make the railway fully functional, enabling efficient movement of both passengers and cargo between Tema and Mpakadan.
He described the Tema-Mpakadan Railway as one of Ghana’s flagship transport infrastructure projects, designed to strengthen the country’s multimodal transport system by linking the Tema Port to inland transport corridors.
Dr. Appoh noted that once the remaining works are completed, the railway will improve the movement of goods from the port, reduce transportation costs for businesses, ease pressure on the country’s road network and enhance trade competitiveness.
He further explained that the project is expected to improve logistics efficiency, support industrial development and facilitate cargo movement along the Eastern Corridor, creating new opportunities for businesses while contributing to national economic growth.
The GRDA Chief Executive added that the railway forms an important part of government’s broader vision to modernise Ghana’s rail network and position the country as a regional transport and logistics hub.
Beyond the European Union grant, the Authority has also taken another significant step to boost commercial activity on the railway network.
Dr. Appoh announced that the GRDA has signed a five-year agreement with MES Logistics to transport up to 300 containers daily from the Tema Port to the Kpone Industrial Area using the railway line.
He said the partnership is expected to improve cargo evacuation from the port, reduce congestion on major roads leading out of Tema, lower logistics costs for businesses and increase the use of rail transport for freight services.
According to him, the initiative will also create employment opportunities while supporting industries operating within the Kpone Industrial Area through more reliable and efficient cargo transportation.
The combination of the European Union grant and the new logistics partnership is expected to accelerate the operationalisation of the Tema-Mpakadan Railway and reinforce its role in strengthening Ghana’s transport infrastructure, improving supply chain efficiency and supporting long-term economic development.
