GRDA defends $447m Tema–Mpakadan project, criticizes Ghana Railway Company Limited mismanagement

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The Ghana Railway Development Authority (GRDA) has rejected claims by the Trades Union Congress (TUC) and the Railway Workers’ Union of the Ghana Railway Company Limited (GRCL) linking salary arrears to the commencement of operations on the new Tema–Mpakadan Standard Gauge Railway Line.

On September 24, the Trades Union Congress (TUC) cautioned the Ministry of Transport and the Ghana Railway Development Authority (GRDA) against commencing train operations without first addressing unresolved labour concerns.

The warning followed GRDA’s announcement that passenger services on the Tema–Mpakadan corridor will begin on October 1, 2025.

Earlier, on September 17, the Railway Workers’ Union had formally notified the Ghana Police Service of its plan to stage a nationwide strike and peaceful picketing on Tuesday, September 30, 2025.

However, in a statement, the GRDA described the unions’ threats of strike action as misplaced, warning that attempts to “conflate GRCL’s internal management failures with the lawful mandate of the GRDA” risk undermining a $447 million national investment.

The GRDA stressed that under the Railways Act, 2008 (Act 779), it holds the legal mandate to develop and regulate railway assets, including operationalising new lines.

It explained that the Tema–Mpakadan project, completed in December 2024, is now set to begin proof-of-revenue services on October 1, 2025, in line with international standards and government directives.

According to the Authority, GRCL has no licence to operate on the line, lacks the rolling stock for standard gauge operations, and has not trained staff to qualify for operations.

It added that 17 entities have already applied for operating licences under the open access model, without GRCL among them.

The Authority also criticised GRCL for years of mismanagement, including defective procurement, derailments on the Western Line, the illegal sale of assets, and poor maintenance practices despite heavy government investment.

It posed a series of accountability questions to the company regarding the use of past funds, the sale of equipment, and questionable contracts.

The GRDA further noted that acts of vandalism against signalling and point machines had been recorded following union threats, cautioning that TUC and its affiliates would be held accountable for any sabotage.

Reaffirming its commitment, the Authority said the Tema–Mpakadan line is a strategic national asset designed to link Tema Port to Buipe via the Volta Lake and to Burkina Faso through the Tema–Ouagadougou transport corridor.

“The GRDA remains resolute in fulfilling its mandate and safeguarding the nation’s investment for the benefit of all Ghanaians,” the statement concluded.