Transport Ministry defends freight train acquisition criticism

The Ministry of Transport has defended the government's acquisition of two heavy freight locomotives and 20 container wagons, rejecting claims that the procurement was poor value for money and insisting comparisons with passenger trains purchased under the previous administration are technically flawed.

In a press statement released on Thursday, July 2, 2026, the ministry argued that the freight locomotives were acquired for a fraction of the cost of passenger trains procured by the previous New Patriotic Party (NPP) administration while serving an entirely different purpose.

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According to the ministry, the previous administration spent US$14.67 million (about GH¢164.7 million) to procure two two-car PESA Diesel Multiple Unit (DMU) passenger trains, one of which was refurbished.

By contrast, it said the current National Democratic Congress (NDC) government, through the Ministry of Transport and the Ghana Railway Development Authority (GRDA), acquired two Class 56 heavy freight locomotives and 20 container wagons for approximately GH¢37.6 million (US$3.18 million).

"This comparison alone exposes the difference between the two administrations. Whilst the NPP Government spent over GH¢164.7 million on two passenger trains, the NDC Government has spent only a fraction of that amount to acquire two heavy freight locomotives and 20 wagons to establish Ghana's first structured container rail freight business," portions of the statement read.

The ministry, however, stressed that the two procurements should not be compared because they were designed for different operations.

"The Class 56 locomotives were acquired specifically for heavy freight. It was never intended to operate passenger services. Equally, the PESA DMUs procured by the NPP administration cannot undertake heavy freight haulage. Comparing the two is therefore technically infeasible and exposes a poor understanding of railway engineering and freight economics," it stated.

Beyond the purchase cost, the ministry maintained that the locomotives are expected to generate revenue by transporting containers and industrial cargo between Tema Port and Mpakadan, lowering logistics costs and reducing pressure on Ghana's road network.

"These are not decorative assets. They are revenue-generating freight assets designed to move containers and industrial cargo between Tema Port and Mpakadan, reduce the cost of logistics, ease pressure on Ghana's roads, support industrialisation and generate sustainable railway income," the statement added.

Responding to concerns over the readiness of the Tema-Mpakadan railway line for commercial freight operations, the ministry dismissed claims that the Ghana Railway Development Authority lacks the equipment needed to handle cargo.

It disclosed that the authority already has two reach stackers for loading and unloading containers and five heavy-duty forklift machines to support bulk cargo handling and terminal operations.

"The claim that GRDA has no lifting equipment for container operations is also false," the ministry said, adding that plans are underway to procure two gantry cranes to strengthen long-term operational capacity.

"The claim that GRDA lacks lifting equipment is therefore factually inaccurate, technically uninformed and politically mischievous," it said.

On the commercial viability of the project, the ministry stated that freight demand on the Tema-Mpakadan corridor had already been established through feasibility studies conducted before financing was secured from India's EXIM Bank.

It further revealed that the GRDA is finalising commercial offtake agreements, one of which is expected to generate about US$3.5 million annually.

The ministry also noted that efforts are underway to build local expertise for maintaining the locomotives, stating that engineers who installed the equipment have remained in Ghana to train GRDA engineers and technicians.

"With regard to capacity building for the maintenance of the equipment, it is worthy to note that the engineers have already arrived in Ghana and have commenced specialised hands-on training and technology transfer to equip GRDA technicians and engineers with the technical knowledge and skills required to maintain the trains," the statement said.

NA/BAI