Transport Ministry signs rail freight deal to ease road congestion

The Minister for Transport, Joseph Bukari Nikpe, has said the government's new partnership with MES Logistics will help decongest Ghana's roads by increasing the movement of cargo through the railway network.

The initiative forms part of efforts to revitalise the country's railway sector, improve freight transportation and strengthen Ghana's logistics chain.

Speaking after signing an off-taker agreement with MES Logistics, the Minister described the partnership as a major step towards repositioning rail transport as a key driver of national development.

"The partnership with MES Logistics will enable the movement of cargo by rail, helping to decongest the country's ports and major roads, lower logistics costs, improve supply chain efficiency, and reduce road accidents caused by heavy cargo trucks," he said as quoted in a news release.

The minister noted that shifting more freight from roads to rail would not only improve the efficiency of cargo movement but also reduce pressure on the country's road infrastructure.

He further stated that the acquisition and deployment of two locomotives and 20 wagons would strengthen railway operations while creating long-term economic benefits for the sector.

"The acquisition and deployment of the two locomotives and twenty wagons represent a sound economic investment that will support industrial growth and generate sustainable revenue for the railway sector through efficient operations and proper maintenance," the release noted.

He urged the Ghana Railway Development Authority and its partners to manage the new assets responsibly to ensure operational efficiency, financial sustainability and the continued expansion of railway services across the country.