Ghana’s investment in railway is an asset

The total revamping of the country’s railway network would contribute to accelerated economic growth, Mr. Joseph King-Edu, General Secretary of the Rail and Allied Workers Union, said on Thursday.  Speaking to the Ghana News Agency in an interview in Accra, Mr. King-Edu said, freight services could amazingly haul huge volumes of goods and generate revenue which could help the development and repayment of local and foreign loans.

He said New Zealand, for instance, once faced deterioration of its railway system, but by holding the bull by the horns, invested in their railway, as a result, they were able to scoop more revenue to re-pay loans contracted for rehabilitation and had more for other commitments.

Mr. King-Edu said, this calls for significant investments, in order to acquire new locomotives, refurbish the existing track, increase and improve wagons and renew and upgrade the railway signals.  He stated that some of the benefits from such investments include, the comparative advantage in the carriage of bulk freight and containerized export/imports from point to point, such as from inland port of Boankra in the Ashanti Region to a port or from a production facility to a port.

Mr. King-Edu said research showed that rails estimated to be six times more fuel efficient, than road for hauling bulk freight, saying that, the improved railway system could reduce the transport cost, and produce less exhaust gases which affect climate change, it could also increase the life span of roads due to reduced pressures made by overweight axle loads.  Revamping of rail transport can also lead to job creation, make transport affordable for public, as well as reduce amount of dollars to import fuel, he added.

Source: BusinessGhana