President Nana Addo Dankwa Akufo-Addo officially commissioned the Tema-Mpakadan Railway Line and diesel multiple unit trains on Friday, marking what appears to be a significant milestone in Ghana’s transportation sector. However, concerns about the economic viability of the 100-kilometer rail line have surfaced, with analysts questioning its potential long-term impact.
The Tema-Mpakadan route, or Tema-Juapong route, is not known for heavy passenger traffic compared to busier routes like Accra-Kumasi, Accra-Cape Coast, or even Accra-Aflao. Additionally, it does not compare to the high intra-city traffic in Accra or Kumasi. Critics argue that the rail line may not attract enough passengers to make it economically sustainable. People commuting between Tema and Mpakadan or Juapong can easily find commercial vehicles, and densely populated areas like Ashaiman might still prefer road transport due to the closer proximity of lorry stations to the city center compared to the rail stations.
The situation has drawn comparisons to the Kojokrom-Harbour railway in the Western Region, which struggled with low demand, raising concerns that the Tema-Mpakadan line could suffer a similar fate.
Initially, the railway line was envisioned as a cargo route, intended to transport goods from Tema to Akosombo, where they would then be ferried across the Volta Lake to the northern parts of the country. This project included the construction of a harbour at either Akosombo or Mpakadan to facilitate the cargo movement. However, this plan seems to have been replaced with a focus on passenger services, which analysts say could be less viable on this less busy route.
Government has suggested that the railway line could form part of the larger 1,000-kilometer Ghana-Burkina Faso Interconnectivity Project, which aims to connect Ouagadougou to the Port of Tema. If this vision is realized, the railway could link Tema Port to the northern regions, easing port operations and reducing road congestion. However, unless the line is extended through Ghana’s eastern corridor to the north and into neighboring Burkina Faso, there are concerns that the rail project may become a “white elephant,” a costly investment that fails to generate enough returns to cover its costs.
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.
