Dr Fredrick Appoh, the Chief Executive Officer (CEO) of the Ghana Railway Development Authority (GRDA), has strongly advocated for increased private sector involvement in the nation’s railway sector.
He argued that the government should not exclusively manage the sector and emphasised the necessity of allowing private participation, particularly in the operational aspects.
In outlining his vision for the sector, Dr Appoh revealed that plans are underway to intensify private sector participation to significantly improve efficiency and the quality of service.
Appearing on the Frontline programme on Rainbow Radio 87.5FM, he assured the Ghanaian public that he and his team remain determined to revitalise the Ghana Railways.
However, he underscored the need for the public to first understand and appreciate this vision to ensure collective support.
He stated that the priority is to get the trains operational again, revealing that efforts are in progress to purchase new cargo and passenger trains.
He confirmed that the Kojokrom to Sekondi and Tema to Accra rail systems would be rehabilitated prior to the resumption of operations, a crucial step to prevent derailments.
Dr Appoh explained to the host, “We must also introduce private sector participation in the rail sector. Government cannot develop and operate at the same time; it will impede progress. Therefore, we need the private sector to participate.”
He detailed that private participation would be twofold, with one stream focusing on an “open access” model where the emphasis is on operations.
“If private participants cannot undertake the development, they should certainly be involved in the operations. This is why we have systems like ‘Tap and Go’, the cashless system in operation—that is a third party. We need to encourage more third-party participants,” he noted.
Citing an example, he suggested that facilities like the railway sector’s car park should be managed by a third party, similar to how restaurants and other auxiliary services are managed in countries like the UK and US.
“We need to decentralise the railway business for people to have a stake. When private entities gain a stake in the railways sector, it will survive,” he asserted. “Most importantly, we should also encourage or allow the private sector to purchase trains and operate them in the sector, especially for cargo services.”
He clarified that the private sector might find cargo services more appealing because passenger trains are typically not operated for profit due to heavy government subsidies, similar to the UK and US models.
He noted that the East Japan Railway system is one of the few global exceptions where passenger services generate profits.
“We are aiming for a new approach by introducing private sector participation in the railways sector. But first and foremost, we need to consider the open access model in operations so that the salaries of the employed workers would be paid by the private sector. This burden would be lifted off the government, allowing it to focus entirely on infrastructure development,” Dr Appoh stated.
He further opined that private participation should also be extended to the mining sector to establish a railway system intrinsically linked to the mining industry.
He stressed the importance of expanding railway transportation, adding that his team has proposed a new railway master plan to the government, dubbed the ‘Ghana Mineral Railway Master Plan’. This plan seeks to connect railway development to mineral sites to encourage bulk transportation.
By: Rainbowradioonline.com/Ghana
