Port Partnership invests $1.5 billion in major Ghana hub Port expansion project
2015-06-12 13:30

Port Partnership invests $1.5 billion in major Ghana hub Port expansion project

Meridian Port Services, a joint venture between Bolloré Africa Logistics, APM Terminals, and the Ghana Ports and Harbour Authority, will develop a new deep-water 3.5 million TEU port and logistics hub in Ghana to accommodate larger vessels and West African trade growth.

MPS Tema, Bolloré Africa Logistics

A USD 1.5 billion plan to expand the Port of Tema into a new West African regional port and logistics hub was set into motion with a formal signing ceremony held today by Ghanaian President Dr. John Dramani Mahamathe.

Meridian Port Services (MPS), a joint venture of APM Terminals, Bolloré Africa Logistics and Ghana Ports and Harbours Authority (GPHA) – which operates the container terminal in Tema Port – will develop four deep-water berths, a new breakwater and an access channel able to accommodate the world’s largest container ships, providing a world-class port infrastructure to support the country’s economic growth. This will add 3.5 million TEUs in annual throughput capacity. More than 5000 jobs will be created as a result of this project.

The expansion project includes plans for the potential construction of additional terminal facilities, including bulk, liquid bulk and general cargo terminals, as global trade with Africa continues to accelerate.

“We are excited about how this port will contribute to Ghana’s future economy. Increased access to global markets is a key component of Africa’s ongoing economic growth, and the new, world-class port development which 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.

“MPS is the quintessential example of a successful public-private venture between two European partners and the government of Ghana. By virtue of this project, along with the trust we place in Ghana’s emerging economy, we extend our commitment through a major project that will help bridge Ghana’s economy to the outside world under the most favourable conditions,” said Phlippe Labonne, CEO Bolloré Africa Logistics.

In a separate project APM Terminals and Bolloré Africa Logistics will upgrade the current highway between Accra and Tema to a six-lane modern highway along with improved connecting roads and access point to enhance the movement of cargoes into and out of the port of Tema and the hinterland.

In November 2014 an initial Memorandum of Understanding was signed by MPS and the GPHA for the expansion plans. During the past five months MPS and the Ghanaian government representatives completed contractual details, and finalized preparations for the project’s required design and engineering studies. The joint venture share is comprised of Bolloré 35%; APM Terminals 35%; and Ghana Ports & Harbours Authority 30%.

“This massive investment highlights the confidence of investors into the country. It is a sign that Ghana is moving in the right direction and the journey will not end there. Expanding the port using superior infrastructure and modern, advanced technology will allow Ghanaian companies to compete for business in the most cost effective way,” said Mohamed Samara, MPS CEO.

The International Monetary Fund has projected an annual economic growth rate of 4.5% for Sub-Saharan Africa in 2015, and 5.1% in 2016, following a 5% GDP expansion in 2014. The IMF has projected Ghana’s economy to expand by 3.5% in 2015 and by 6.4% in 2016. Container ship industry analysts have estimated overall African containerized cargo handling to have increased by 7.2% in 2014, as compared with an overall global growth rate of 5.4%. African port container volumes are forecast to continue to increase well above the global market.

Container throughput at MPS was 651,000 TEUs in 2014.

Source: Bollore Africa Logistics press release

Source: Bollore Africa Logistics press release