Government supports Ghana Railway Company with capital injection

The government has pumped an undisclosed amount of cash into the Ghana Railway Company Limited (GRCL) as part of efforts to help the company become self-reliant.

In a press release signed by its Managing Director, Mr. John Essel, on Tuesday, June 16, 2020, the GRCL remarked that “through the effort of government, GRCL will, aside from the capital injection into the company by the government, take delivery of track tools, spare parts, and equipment to facilitate the rehabilitation of five locomotives and several mineral wagons to augment the current fleet of manganese trains which will further increase the haulage of manganese ore for export.”

Prior to this capital injection, the GRCL had struggled to pay salaries of its workers.

However, with the current capital, the company will now be able to take care of staff salaries and other related expenses up to the end of March 2021 after which it is expected that it would have been able to work hard to become self- sufficient.

About the Ghana Railway Company Limited

The Railway organisation started in 1901 as a department of the Gold Coast Service after the construction of Ghana’s rail system had begun in 1898.

With the building of the harbour, the railway and the harbour came under the joint administration of Railway and Harbours Administration until the 1st of July 1972, when the Railway was separated from the Ports with the two becoming distinct corporate bodies under separate administrations.

Since its separation, the railway has passed through several stages and had been known as the Ghana Railway Corporation until the 7th of March, 2001, when it was issued with a Certificate of Incorporation by the Registrar of Companies, and became known as Ghana Railway Company Limited to allow for private sector participation and investments into railway operations.

The Company currently has a total staff strength of 1,582, made up of 1,189 permanent staff and 393 casual labourers.

Past governments undertook different projects all in a bid to allow the company stay on its feet though the company has continued to suffer in the area of finances.

The Ghana Railway Company has for some time now had issues with the payment of salaries of workers. The company until this financial support from the government, had not paid workers for three months spanning from March to May.