www.pwc.com/gh Original Ministry of Transport 21 December 2016 Transaction Advisory Strictly Private and Services for the Confidential Development of Boankra Inland Port and Eastern Railway Line Project on PPP Basis Final Feasibility Report Caveat The information/data furnished in this report contains confidential information proprietary and confidential to PricewaterhouseCoopers (PwC), and shall not be disclosed outside the recipient’s organisation or duplicated, used or disclosed in whole or in part by the recipient for any purpose other than its intended use. Any other use or disclosure in whole or in part of the information contained herein shall be with the express permission of PwC. Ministry of Transport 21 December 2016 PwC 1 Table of Contents 1. Introduction ........................................................................................................................ 52 1.1. Project Background ................................................................................................................................... 52 1.2. Congestion Issues at Tema Port ............................................................................................................... 52 1.3. Scope of Work ........................................................................................................................................... 53 1.4. Project Concept and Requirements ......................................................................................................... 54 1.4.1. Boankra Inland Port Project ........................................................................................................... 54 1.4.2. The Eastern Railway Line Project .................................................................................................. 54 1.4.3. Benefits of the Combined Boankra Inland Port and Eastern Railway Line Project .................... 55 1.5. Approach to the Feasibility Study ............................................................................................................ 55 2. Current State of the Transport Network along the Eastern Corridor .................................. 58 2.1. Introduction .............................................................................................................................................. 58 2.2. Typical Sections of the Accra-Kumasi (N6) Road .................................................................................. 58 2.3. Operational Efficiency and Safety of the Road ....................................................................................... 60 2.3.1. Long Travel Time ............................................................................................................................ 60 2.3.2. Poor Road Safety Record................................................................................................................. 61 2.4. Eastern Railway Line ................................................................................................................................ 66 2.4.1. Initial Site Observations ................................................................................................................. 66 2.4.2. Existing Conditions of the Railway Line ....................................................................................... 68 2.5. Overview of Rail Infrastructure in Sub Sahara Africa ............................................................................ 72 2.6. Boankra Inland Port ................................................................................................................................. 78 2.6.1. Existing Conditions at the Boankra Inland Port ........................................................................... 78 2.7. Overview of Dry Port Infrastructure in Sub-Saharan Africa .................................................................. 80 3. Macroeconomic Outlook for Ghana and the Neighbouring Landlocked Countries ............. 87 3.1. Introduction .............................................................................................................................................. 87 3.2. Review of the Neighbouring Landlocked Countries and their Economic Activities ............................. 92 4. Options Analysis ................................................................................................................. 98 4.1. Project Options.......................................................................................................................................... 98 4.2. Option 1- Standalone Boankra Inland Port using a road connection only............................................ 99 4.2.1. Review of Option 1 .......................................................................................................................... 99 4.2.2. Advantages of Option 1 ................................................................................................................. 101 4.2.3. Disadvantages of Option 1 ............................................................................................................. 101 4.3. Option 2- Standalone Eastern Railway Line carrying freight only ...................................................... 102 4.3.1. Review of Option 2 ........................................................................................................................ 102 4.3.2. Advantages of Option 2 ................................................................................................................ 104 4.3.3. Disadvantages of Option 2 ........................................................................................................... 104 4.4. Option 3- Combined Boankra Inland Port and Eastern Railway Line (carrying Freight only) ......... 104 4.4.1. Review of Option 3 ........................................................................................................................ 104 4.4.2. Advantages of Option 3 ................................................................................................................ 106 4.4.3. Disadvantages of Option 3 ........................................................................................................... 106 4.5. Option 4- Combined Boankra Inland Port and Eastern Railway Line (carrying Freight and Passengers) ........................................................................................................................................................................ 107 4.5.1. Review of Option 4 ........................................................................................................................ 107 4.5.2. Advantages of Option 4 ................................................................................................................. 110 4.5.3. Disadvantages of Option 4 ............................................................................................................ 110 4.6. Assessment of Project Options against Project Objectives ................................................................... 111 4.7. Review of PPP Policy and Principles ...................................................................................................... 115 4.8. Assessment of Project Options using PPP Considerations ................................................................... 116 5. Traffic Demand Forecasts and Competition Analysis ........................................................ 122 5.1. Introduction ............................................................................................................................................ 122 5.2. Container and Cargo Traffic at Tema Port ............................................................................................ 122 5.3. Current Usage of Freight along Accra-Kumasi Road Corridor .............................................................123 5.4. Classification and Movement of Freight Traffic along the Accra - Kumasi Road Corridor ............... 134 5.5. Approach and Methodology .................................................................................................................... 135 5.6. Container and Cargo Traffic along Accra-Kumasi Road ....................................................................... 137 5.7. Future Traffic Growth Rate .................................................................................................................... 138 5.8. Traffic Demand for the Standalone Boankra Inland Port with Road Connection .............................. 140 5.9. Projected Traffic Demand for the Standalone Boankra Inland Port with Road Connection ............. 140 5.10. Traffic Demand for the Standalone Eastern Railway Line ................................................................. 142 5.11. Projected Traffic Demand for the Eastern Railway Line ..................................................................... 142 5.12. Potential Mineral Resources ................................................................................................................ 144 5.13. Estimating Passenger Traffic Demand ................................................................................................. 145 5.14. Willingness to Pay ................................................................................................................................. 148 5.15. Competition Analysis ...........................................................................................................................