EU vice president impressed by the Tema port expansion project

Company News of Monday, June 17, 2019

Source: Meridian Port Services (MPS)

2019-06-17

The visit of the new Meridian Port Services Container Terminal (MPS) at Tema Port was part of the itinerary of Vice President of the European Commission, H.E. Katainen in Ghana.

HE. Katainen was accompanied by Professor Joe Amoako-Tuffour, member and secretary of Ghana's economic management team, and Ghana's two ambbadadors to the EU, Ms Sena Siaw-Boateng, and the EU's President. EU in Ghana HE Ms Diana Acconcia among the other delegates.

MPS is a joint venture between the Ghana Ports and Harbors Authority and APM Terminals and Bollore Transport & Logistics, which are among the leading European companies and lead this development of iconic port infrastructure that provides increased strategic capacity for international trade and regional.

The immediate cash requirement for the Tema Port expansion project has been pumped by new capital by European shareholders in order to meet the obligation arising from the project financing agreement with IFC . Among IFC-led syndication activities, the EU's FMO provided USD 50 million of IFC's total USD 667 million loan. The CEO confirmed that the project was on time and on budget.

The presentation stimulated discussions on Ghana's unique trade status. Ghana not only exports and imports more than most neighboring countries, but unlike other countries, Ghana has also managed to maintain its diversified exports with cocoa, gold, oil and gas.

This diversification protects Ghana from falling prices of a single raw material, which can have devastating effects on the country's economy. Ghana's cocoa export is the main source of employment and livelihood security in rural areas.

The new Tema port is expected to increase Ghana's connectivity, reduce transit time, reduce transport and logistics costs, as well as the prices of imported goods. This is expected to increase imports, exports and domestic production, which will lead to an increase in jobs and GDP.

The CEO has shown that the new port of Tema has the potential to increase Ghana's exports by +/- 15%, which is badociated with a +/- 2% increase in GDP and an increase of +/- 4.0% of jobs.

In badyzing Ghana's employment engine, the MPS CEO said that the agricultural sector would benefit the most from the increased export of the new port of Tema.

He pointed out that, according to UN statistics, COMTRADE, Ghana's exports consisted mainly of gold (around 42%), oil (around 26%) and agricultural products (around 23%). Together, these three product groups account for about 91% of Ghana's exports.

However, while oil and gold create very few jobs, about 3% and 1% respectively, agricultural production accounts for about 31% of total employment in Ghana. Therefore, if the new Tema port strengthens the competitiveness of Ghana's exports, Ghana's agricultural exports will create the largest number of jobs.

"The Ghanaian agriculture sector is crucial for employment and poverty reduction in the country," Samara said.

MPS Terminal 3 is the new state-of-the-art container terminal in Africa located in the port of Tema. Well equipped to increase processing capacity and allow Ghanaian entrepreneurs to save time and do more business.

Like many successful hubs (Salalah Oman, Tanjung Pelepas Malaysia and Tangier Med Morocco, etc.), MPS Terminal 3 at Tema Port is changing the game. MPS brings greater connectivity to Ghana's economy.

As an effect of MPS investment; Terminal 3 will boost national and regional trade, generating significant revenue for Ghana's economic and social development and jobs, generating thousands of jobs and offering highly skilled jobs opportunities, for the benefit of all of the dynamism Economic and Development of Ghana.

Mr. Samara added, "Ghana is a high-tech country and will prosper through the connectivity of MPS Terminal 3" and affirming that "the MPS investment is an endorsement of the realization of GHANA BEYOND AID's vision of HEY. President Akufo-Addo. In addition, MPS is preparing to achieve Her Excellency's long-term goal of making Ghana a thriving emerging market economy that can unleash the full potential of Ghanaians, young and old, rich and poor, here in Greater Accra. and across this nation. "

Following the presentation to the Board of Directors, the delegation went on tour to inspect the terminal facilities and followed the container delivery route; she was introduced to the sophisticated paperless process and then stopped at the newly created wharf to observe the seafront operations of the gantry cranes.

The entire delegation, including the Vice President and the Ambbadadors, is absolutely right to feel the power of these machines and to see Ghanaian operators and engineers using this advanced technology.

The Vice President of the EU was very focused on development, private capital investment in infrastructure for the creation of jobs and economic growth.

It was clear to him that the MPS Port Project is the ideal model for successful public-to-public collaboration that adds value and boosts the economy. HE. left with a huge positive impression that echoed in his closing remarks from the Ghana-EU Business Forum alongside Dr H. Mahamudu Bawumia, Vice President of the Republic of Ghana.