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BRIEF ON BOANKRA INLAND PORT
Introduction
The Site
Project Viability
INTRODUCTION
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In furtherance to achieving the objectives of the Ghana Trade and Investment Gateway (GHATIG) Programme, the Ministry of Transport, acting through its agencies, the Ghana Shippers' Authority (GSA) and the Ghana Ports & Harbours Authority (GPHA), have initiated a project to develop an inland port at Boankra, near Kumasi in the Ashanti Region of Ghana. GHATIG is a Government of Ghana policy initiative which seeks to achieve rapid economic growth by transforming Ghana into a major manufacturing, processing and multi modal transportation hub in the sub region, through, among other projects, the development and improvement in transportation and port infrastructure.
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Current international trade forecast show an annual increase in global cargo tonnage. It is therefore imperative that a more proactive approach is adopted in maintaining the country’s competitive edge. By moving cargo which is destined for the hinterlands away from the seaports, more land space is made available to handle the projected increases.
It is for the above reasons that the promoters, through the Government of Ghana, acquired a large tract of land in the middle belt of the country to develop an Inland Container Depot (Inland Port) to help ease the congestion at the country’s sea ports. |
OBJECTIVES
The objectives for undertaking the Boankra Inland Port Project are:
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- To bring import and export services closer to the doors of shippers in the northern half of Ghana, as well as in the landlocked neighbouring countries of Burkina Faso, Mali and Niger
- To enhance the operational efficiency of both the Tema and Takoradi Ports, through decongestion
- To enhance the competitive positioning of importing and exporting through Ghana
- To help Ghana achieve the objectives of GHATIG
- To facilitate greater levels of international trade with the landlocked countries aforementioned
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THE SITE
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The Boankra Inland Port is to be developed on a 400-acre parcel of land located at Boankra, a settlement about 27 km from Kumasi, the Ashanti Regional capital, and Ghana’s second largest city after the capital, Accra. The port would thus be 295 km and 330 km from the sea ports of Tema and Takoradi respectively.
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The site for the Project has been fully acquired by the Project Promoters, and the requisite compensation has been fully paid. The Project Site has also been fenced, to secure it from encroachers, and is accessible by both road and rail.
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FACILITIES
On completion, the Boankra Inland Port is expected to comprise of the following facilities: => Infrastructural Facilities – roads, drains, utilities
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- Customs Bonded Estates with Container Depots
- Unbonded Estates with Container Depots
- Commercial Estates
- Vehicle Parking Areas
- Light Industrial Estates
- Inland Port Administration Complex (one-stop documentation shop)
PROMOTERS
The project is a Private Sector Participatory Project, being jointly promoted by the GSA and GPHA under the auspices of the Ministry of Transport.
FINANCIAL OPTION
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The Project is expected to be developed on a Build, Operate and Transfer (BOT) basis. Thus, for a strategic investor to undertake the project, operate it for a number of years to be determined and ultimately hand it over to the promoters.
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Details of the BOT would be worked out between the Project Promoters and the selected Investor.
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PROJECT IMPLEMENTATION
The project is expected to be implemented in 3 Phases.
Phase 1
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Phase 1 is the development of primary infrastructure, ie, roads, drains, water supply, sewage, electricity and telecommunications. To this end, the promoters have cleared the
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vegetation and prepared the site, fenced the entire perimeter of the project, and are now ready to let out this Phase in the general scheme of the BOT. This Phase is estimated to cost about US $60 million.
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Phase 2
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Phase 2 of the project entails the development of the Project estates, viz, Customs Bonded and Un-Bonded Estates, Vehicle and Car Parking Lots, Commercial Estates, Light Industrial Estates, Social/Civic Estates.
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The construction of an Administrative Complex (dubbed the Shippers’ Centre) has been undertaken by the Project Promoters, and is virtually completed. The estimated cost of Phase 2 of the project is US $150 million.
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Phase 3
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This Phase of the project is considered the long term future development of the project,
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and it is envisaged that the establishment of the Inland Port would facilitate the creation of an Export Processing Zone.
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PROJECT VIABILITY
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Various feasibility studies conducted on the project indicate that it is a viable venture. Congestion in the sea ports of Tema and Takoradi, with specific regard to the amount of cargo that moves from the sea ports to the hinterlands, makes a project of this nature, sited in the middle belt of the country with all the facilities available at the sea ports, inure to the benefit of shippers. This is because through the issuance of multi-modal or ‘through’ bills of lading, cargo would be transported from the sea ports to the inland port before customs documentation and clearance procedures are undertaken. This would mean that the sea ports would have to hold less cargo over long periods of time, as cargo meant for the hinterland would be moved immediately they are landed at the sea ports.
Again, cargo meant for the hinterland would not be unduly delayed at the sea ports as there would be no reason for any delay, since they would technically be ‘in transit’ and would not be deemed to have been delivered until they are landed in the inland port, where documentation would be processed before their release. Another competitive advantage is the political stability in the country. The political arena in the country is very stable, thus making it an ideal corridor and inland port facility to pass cargo through to the neighbouring landlocked countries.
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To facilitate the transit trade, the Ghana Shippers’ Authority has also signed Memoranda of Understanding (MOUs) with the neighbouring countries of Burkina Faso, Mali and Niger regarding the transport of goods destined for their respective countries through the Ghanaian corridor. In recent times, too, the country has experienced an upsurge in economic growth, and this is evidenced by the number of cargo which comes into and goes out of the country’s ports. The above thus gives Ghana a competitive advantage, and it is envisaged that more cargo intended for the landlocked countries would pass through the inland port, where documentation would be processed and the cargo released for onward transhipment to the consignees’ countries.
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