Meridian Port Services (MPS), one of the top container terminal operators in Africa and the Ghana Ports and Harbours Authority (GPHA) have signed a deal for commencement of work on the US$1.5billion Tema Port expansion project.
MPS is a partnership between GPHA and the Joint Venture of APM Terminals and Bolloré Africa Logistics, as principal investors and leading container terminal operators in the world.
Building on its success in transforming the Tema Port to be amongst the best in Africa, this JV has now taken another giant step in committing itself to prepare the nation for handling growth and providing a world-class infrastructure to support the country’s economic growth.
The project involves the building of breakwater and an access channel harbouring four deep-water berths to accommodate larger vessels with high capacity equipment.
Signing the deal paves the way for the project team to complete detailed designs by end of the year for the project itself to commence in 2016.
After completion in four years, it will make Ghana a maritime hub and the most efficient one-stop port services centre in the region and the rest of Africa.
The project, to be funded by MPS, also has a road component that will see the Accra-Tema motorway expanded into three lanes in each direction to facilitate easy access to the port.
Also, a Memorandum of Understanding for expansion of the motorway was also signed between MPS and the Ministry of Roads and Highways on May, 12, 2015.
The new container terminal will have a capacity of 3.5 million TEU while the Motorway will consist of 3 lanes in each direction including the interchange at the Tema-end on to the upgraded dedicated access road in Tema Township up to the new facility.
“As a result of the growth in economic activity in West Africa and increasing volumes of commodity exports and processed imports handled at the Port of Tema, GPHA has decided to expand the port in order to accommodate larger container vessels and increase its container handling capacity in line with the GPHA Master Plan,” said Mr. Richard A.Y. Anamoo, Director-General of GPHA.
“Increased access to global markets is a key component of Africa’s ongoing economic growth, and the new world-class port development that begins here today will help to put Ghana, and all of West Africa, at the forefront of African global trade,” stated APM Terminals CEO Kim Fejfer. “Today, we are pleased to participate in our capacity as project partner in yet another landmark development, collaborating with GPHA and the Ministry of Roads and Highways to provide superior transport infrastructure and services with sound strategic investors and business partners,” Mr. Philippe Labonne, Directeur Général of Bolloré Africa Logistics said.
Besides increasing the throughput capacity of Tema Port to adequately handle the country’s trade growth, the MPS-financed investment will generate massive added value to the country during and after the construction phase.
It is expected to create close to 5,000 jobs for skilled professionals as well as unskilled labour, besides taxes and social security contributions.
“This is the single largest port infrastructure development to be carried out by private investors in West Africa. There is no privately funded port investment in Africa and many other regions that has road construction in it.
It illustrates MPS’s long-term commitment to Ghana and shows the confidence our company has in the future economic development and growth of the country,” Mr. Mohamed Samara, CEO of MPS said.
“Our shareholders have a long vision of the future prospects and we are looking beyond the current economic difficulties; and that is why the MPS Shareholders agreed to undertake an investment of this quantum,” he said.
Commenting on the inclusion of expansion of the Accra-Tema Motorway in the project Alhaji Asoma Banda, Chairman of MPS said: “We are fulfilling the wish of Ghana’s President John Dramani Mahama who wants to see the motorway expanded. It is actually his vision that is being fulfilled today.”
“I consider this as a huge achievement for Ghana. Having worked in the shipping industry for all these years, this is the biggest ever privately funded port development in Africa I have witnessed. I’m proud to be part of the building on the foundation laid by Ghana’s first president Kwame Nkrumah, and working towards his vision of making Ghana the gateway to Africa and beyond,” Alhaji Asoma Banda, Chairman of MPS said.