Meridian Port Services secures funding for Tema Port expansion

Accra, Sept. 2, GNA - Meridian Port Services (MPS) has secured the required financing to execute the Tema Port Expansion Project, enabling the development of an ultra-modern port facility at Ghana's primary commercial hub.

The project, valued at USD 1.5 billion, in addition to serving Ghana, will also expand trade flows and links across West Africa.

Meridian Port Services Limited is a joint venture between the Ghana Ports and Harbours Authority and Meridian Port Holdings Limited, with Bolloré Transport & Logistics and APM Terminals as the two main shareholders.

'A vast continent, with a rapidly growing population, Africa is still significantly under-represented in world trade, currently accounting for less than five per cent of global container trade.

'But the establishment of modern port infrastructure such as this Tema Port expansion will help link African markets to the global logistics chain and promote new trade opportunities and economic growth' said Kim Fejfer, the Chief Executive Officer (CEO) of APM Terminals.

MPS is executing the project within the GPHA Master Plan for the development of Tema Port and building upon its success and achievements under the Concession Agreement that was granted in 2004, resulting in this latest massive expansion of Tema Port's capacity and infrastructure.

Philippe Labonne, the Director General of Bolloré Transport & Logistics, said; 'The new port infrastructure and its future expansions will propel Ghana into the global best in class, which will improve Ghana's competiveness, facilitate trade growth and improve tax collection'.

The project would allow Tema Port to accommodate some of the world's largest container ships and improve cargo handling services and capacity which would enhance the port's competitiveness and position it as a leading maritime hub in West Africa.

The immediate cash flow needs of the US$ 1.5 billion port development project is one billion dollars. MPS has signed a $667 million financing package with the International Finance Corporation (IFC), a member of the World Bank Group, while the MPS shareholders will provide the rest of the funding as fresh equity amounting to $333 million.

The financing package for the construction of the port in Tema represents IFC's largest port investment and biggest infrastructure mobilisation to date in Sub-Saharan Africa. It includes $195 million from the IFC's own account and $472 million from three commercial banks: the Bank of China, the Industrial and Commercial Bank of China, and Standard Bank, as well as the Dutch development bank, FMO.

Dr Alhaji Asoma Banda, the Chairman of the MPS Board, said the project would generate a vast increase in employment opportunities in the country.

He said the expansion works would create around 5,000 direct jobs with industry experts estimating that the economic impact of such new infrastructure would translate into approximately 450,000 new jobs.

Construction of the harbour expansion project will begin on October 1, 2016 and projected to be completed by the last quarter of 2019.

Mr Richard Anamoo, the Director General of Ghana Ports and Harbours Authority, said: "This expansion project takes the dream of our founding father Osagyefo Dr Kwame Nkrumah to the next level and will remain for future generations to benefit from.

Mohamed Samara, the CEO of Meridian Port Services, said: 'This project clearly displays the strong commitment of MPS in the drive towards improving Ghana's competitiveness as a preferred destination for international trade and investment,' adding,' bigger vessels means reduced freight charges, with significant savings and a tremendous benefit to the shipping community of Ghana.'

He said at present, the largest vessels which could dock at Tema Port are WAFMAX (West African Maximum Vessels) which can carry between 4,500 and 5,000 container Twenty-Foot Equivalent Units (TEUs).

The impending expansion would, among other things, increase the depth of the harbour, and add four deep-water berths, a breakwater and a new access channel, enabling the port to accommodate vessels of up to 20,000 TEU capacity.

GNA