The Ghana Railway Development Authority (GRDA) has reactivated the Accra-Koforidua railway line and secured a $21 million grant from the European Union to modernise the signalling system on the Tema-Mpakadan railway, paving the way for the commercial expansion of freight services.
The Chief Executive Officer of the GRDA, Dr. Frederick Appoh, announced the developments at a press conference in Accra, saying the Authority is repositioning Ghana’s railway sector to become “bankable, reliable and useful” while supporting trade, logistics and economic growth.
According to him, the Accra-Koforidua passenger service, popularly known as Kodjo Krom Second in Line, resumed operations after being suspended for about two-and-a-half years following a directive from the Minister for Transport, Joseph Bukari Nikpe.
Dr. Appoh disclosed that approximately GH¢5 million was invested in rehabilitating the railway line and repairing the Diesel Multiple Units (DMUs) used on the route.
“The total cost for doing that is GH¢5 million, which includes the repair of the line and the repair of the DMUs. At the moment, we are supporting the operation of Kodjo Krom Second in Line. The two DMUs parked there are now working,” he said.
The GRDA CEO also announced that the Authority had won a $21 million European Union sustainability and interoperability grant to install a modern signalling system on the Tema-Mpakadan railway corridor.
Although the railway line was ceremonially commissioned in 2024, Dr. Appoh explained that full commercial operations could not commence because the signalling and interoperability system, initially estimated at about $11.75 million, had not been completed.
“We competed for the European Union Sustainability and Interoperability Grant Scheme for Africa. I am happy to announce that we have been awarded $21 million by the EU Commission as a grant to fix the signal system with ETCS Level 1,” he said.
The new signalling infrastructure is expected to improve operational safety, efficiency and train coordination while enabling the railway to support larger freight volumes.
Passenger services on the Tema-Mpakadan line began in October 2025 and currently transport about 6,800 passengers each week.
However, Dr. Appoh said passenger fares of GH¢15 per trip are insufficient to cover fuel, maintenance and infrastructure costs, making freight transport the Authority’s primary commercial focus.
Following a traffic and demand assessment, the GRDA identified freight movement as the most viable opportunity to improve revenue generation while easing congestion at Tema Port.
He said businesses seeking efficient cargo transportation between Tema Port and inland destinations are expected to benefit from the expanded freight operations.
Responding to public debate over the Authority’s decision to procure Class 56 diesel locomotives, Dr. Appoh said the choice was based entirely on technical and operational considerations rather than appearance.
“Even if I’m given $100 million today, I will still buy Class 56 because from the technical specification point of view, line utilisation and operational constraints, you cannot bring in Class 70,” he said.
He explained that the Tema-Mpakadan railway is a single-track line with horsepower limitations, steep gradients and sharp curves, making the Class 56 locomotives more suitable for Ghana’s operating conditions.
According to him, the locomotives produce about 2.2 megawatts of power, can haul up to 50 containers, and are designed to operate efficiently on non-electrified rail networks under high temperatures.
He added that the locomotives remain commercially viable internationally, noting that they continue to be used for freight services in the United Kingdom.
“Buying a locomotive is not about architecture or feeling. It is about pulling power, torque, reliability and availability,” he said.
Dr. Appoh disclosed that the GRDA has successfully completed factory acceptance tests for the locomotives and is currently undertaking in-country driver training and proof-of-fitness testing.
Operational trials have included single-headed trains with 10 and 15 wagons as well as double-headed trains with 20 wagons, which represents the maximum safe operating capacity of the Tema-Mpakadan corridor.
He further revealed that the Authority has improved its internally generated revenue this year and plans to construct its own headquarters instead of operating from offices within the Ministry of Transport.
Dr. Appoh also expressed sympathy to families affected by the recent floods, assuring them that the Authority stands with those who have lost livelihoods.
He reiterated that the GRDA’s immediate priority is the commercialisation of rail freight services to support businesses, improve logistics efficiency and reduce congestion at Tema Port.
