Barring any last minute hitches, work on the Tema Port Expansion Project, aimed at boosting trade flows and making the country a preferred hub in the West African sub-region, will take off at the start of the last quarter of this year.
As part of an initial US$1billion financing, Meridian Port Services (MPS), which is executing the project, has already signed a US$667 million financing package with the International Finance Corporation (IFC).
It expects to raise another US$333 million as fresh equity from its shareholders, specifically APM Terminals and Bollore Transport and Logistics.
The IFC financing package represents its largest port investment and biggest infrastructure mobilization in sub-Saharan Africa.
It is injecting US$195 million from its own account, and the remaining US$472 million from the Bank of China, the Industrial and Commercial Bank of China, Standard Bank and the Dutch Development Bank, FMO.
The project will position the Tema Port to accommodate some of the world’s largest container ships as well as improve cargo handling services and capacity improvements.
It will also enhance the competitiveness of the port as a leading maritime hub in the West African region.
Chief Executive Officer of MPS, Mohammed Samara, told the B&FT on the sidelines of a press conference to announce the signing of the financing agreement and the awarding of marine contract for the project, that the huge investment reiterates his company’s commitment to the long-term growth of the economy.
“This is a commitment from MPS in the drive towards improving the country’s competitiveness as a preferred destination for international trade and investment. It will translate to job creation as well as increase government’s tax revenue from the port to cushion other socio-economic activities,” he said.
Presently, the largest vessels that can dock at the Tema Port are the West African Maximum Vessels (WAFMAX) which can carry between 4,500 to 5,000 container Twenty-Foot Equivalent Units (TEUs).
But the impending expansion will deepen and add four new deep-water berths to receive vessels of up to 20,000 TEUs capacity.
According to the MPS boss, the calling of bigger vessels to the Tema Port will mean reduced freight charges which will lead to significant savings and tremendous benefit to the shipping community.
Director-General of the Ghana Ports and Harbours Authority (GPHA), Richard Anamoo, described the project as a historic one that will serve generations yet unborn.
He said: “This expansion project takes the dream of our founding father, Osagyefo Dr. Kwame Nkrumah, to the next level and will remain for future generations to benefit from.
Tema Port, in conjunction with Takoradi Port, will enhance GPHA’s contribution to the economic growth of the sub-region.”
China Harbour Engineering Company (CHEC), a Global Fortune 500 company, has been awarded the marine construction contract, with AECOM Professional Service Ghana hired as project managers.
Board Chairman of MPS, Dr. Alhaji Asuma Banda, expressed optimism that the oncoming expansion will generate a vast increase in employment opportunities in the country.
The expansion works will create around 5,000 direct jobs with industry experts estimating the economic impact of the new infrastructure will translate to approximately 450,000 new jobs.
Source: B&FT | Ghana
