Along with partners Bolloré Africa Logistics and the Ghana Ports and Harbour Authority, APM Terminals will invest $1.5 billion to upgrade and expand the Port of Tema in Ghana.
Meridian Port Services, a joint venture between APM Terminals, Bolloré Africa Logistics and the Ghana Ports and Harbour Authority, will invest $1.5 billion to upgrade and expand the Port of Tema in Ghana.
APMT said in a statement the project includes construction of a new 3.5 million-TEU capacity deep-water port and logistics hub, as well as repairs and improvements to the adjacent road network. The new port facility will feature four deep-water berths, a new breakwater and an access channel able to accommodate the world’s largest container ships.
In addition, APMT and Bolloré Africa Logistics will expand the current highway between Tema and Accra to six lanes, and improve connecting roads and access points “to enhance the movement of cargoes into and out of the Port of Tema and the hinterland.”
MPS and the GPHA signed an initial memorandum of understanding in November 2014 for the project. According to the MoU, APMT and Bolloré are each responsible for 35 percent of the joint venture share, and GPHA is responsible for 30 percent.
The existing MPS container facility, operated by APMT and Bolloré since 2004, handled 651,000 TEUs in 2014, and APMT said it is close to maximum utilization.
The company expects an annual economic growth rate in Ghana, a country of 21 million people, of around 5-7 percent. APMT characterized the country as “politically stable and attractive for business,” as it has “few policy barriers to trade and investment.”
“The International Monetary Fund has projected an annual economic growth rate of 4.5 percent for Sub-Saharan Africa in 2015, and 5.1 percent in 2016, following a 5 percent GDP expansion in 2014,” noted APMT. “The IMF has projected Ghana’s economy to expand by 3.5 percent in 2015 and by 6.4 percent in 2016.
“Containership industry analysts have estimated overall African containerized cargo handling to have increased by 7.2 percent in 2014, as compared with an overall global growth rate of 5.4 percent. African port container volumes are forecast to continue to increase well above the global market.”
APMT estimated the project will create more than 5000 jobs in the area and said the investment illustrates the company’s “strong commitment to Africa.”
“We are excited about how this port will contribute to Ghana’s future economy and emphasize APM Terminals’ strong commitment to Africa’s growth and development. Increased access to global markets is a key component of Africa’s ongoing economic growth, and the new, world-class port development which begins here today will help to put Ghana, and all of West Africa at the forefront of African global trade,” APM Terminals CEO Kim Fejfer said of the project.
“This massive investment highlights the confidence of investors into the country,” added Fejfer. “It is a sign that Ghana is moving in the right direction and the journey will not end there. Expanding the port using superior infrastructure and modern, advanced technology will allow Ghanaian companies to compete for business in the most cost effective way.
“Despite recent challenges, Ghana is a success story as a country. Well-educated, skilled people, stable and business-oriented government – and therefore an obvious choice for APM Terminals to create a new, stronger gateway.”
APMT plans massive expansion of Ghana port
