Despite the pomp and pageantry that characterized the commissioning of the newly constructed Tema-Mpakadan railway line, its strategic positioning and economic importance to the general economy have come under serious scrutiny and criticism.
Finance Analyst, Dr. Richmond Atuahene believes the project lacked strategic thinking and therefore cannot contribute meaningfully to the economy despite the huge millions of dollars spent.
The about 100-kilometer railway standard gauge was commissioned alongside some diesel trains on Thursday, November 21, 2024, seeming to mark a milestone in the railway transportation sector in the country. The trains will shuttle passengers along the Tema-Juapong route.
Shortly after the commissioning, analysts just like Dr. Atuahene raised questions about the economic viability of the project. Already people familiar with the route say the Tema-Mpakadan or the Tema-Juapong route is not known for heavy passenger traffic like in some parts of Accra or the country hence bringing its patronage in doubt.
Dr. Atuahene also believes railways in some parts of the world are best suited in strategic areas of economic importance where the trains can transport valuable resources or goods across the country at a cheaper cost and also protect road networks.
The Tema-Mpakadan route, where the rails have been constructed has no strategic economic activity that can help to generate significant incomes to support the economy just like how railways were constructed in the colonial days during the administration of Gordon Guggisberg.
In an interview with The High Street Journal, he explained that “when the Guggisberg economy came to this country, the first thing, was the railway construction, they didn’t even start in Tema. They started from Takoradi, went to Obuase, Obuase to Dunkwa, and then Kumasi, and then Nkawkaw, and then Konongo. They used a strategic positioning. At that time, Bauxite at Awaso was there. Gold was in Bibiani. So they carved the railway to strategic positions where it will contribute to the economy.”
The financial analyst believes the project is a strategic failure and its potential contribution to the overall economy is questionable.
“That is how you should plan your economy. If you create a railway station for just people to glorify you in your mediocrity, not doing your calculations, the contributions to your GDP, even carrying human beings will not support the economy as we want it to be. It might be a strategic positioning where either bringing food or carrying gold dust or carrying bauxite dust,” he critiqued.
He added, “And that is why I find some of these things being commissioned all over the place a bit uncredible as if there was no strategic thinking behind all that we’re doing. It’s a strategic failure. I can say it without fear because I think any person would have to look at the resource base and where my spend so that it can go through there.
The Tema-Mpakadan rail line, which began in 2018, was financed through a $447 million credit facility from the India Exim Bank and was executed by Afcons Infrastructure Limited.
