Dubai's Kampac Oil signs Dh5.8b Ghana rail contract

Dubai-based Kampac Oil Company, which heads a consortium that has won a Dh5.8 billion ($1.6 billion) railway project in the western part of Ghana, has announced the signing of 35-year concession agreement with the Ghana Railway Corporation.
Charles Ampofo, Chairman-Kampac Oil ME (Kampac group) in the presence of Ghanaian Minister of Ports, Railways and Harbour Christopher Ameyaw Akumfi, signed the Western Rail Line contract that involves the construction of 800km of new rail line and the rehabilitation of 400 km of existing line.
The new line, the construction of which will commence from December 1, 2007, will run from the town of Takoradi to Hamile in the Upper West Region, while the redevelopment job is for the existing line from Takoradi to Kumasi. The first phase of the contract � redevelopment of 400km rail line � is scheduled to complete in 18 months while the entire 800km new line will be commissioned in 48 months.
Attending the signing ceremony was a delegation from the UAE comprising Kampac Oil Company's directors and consortium partners besides top Ghana government officials.
Minister Akumfi said the ambitious contract, which heralded a new era in cross-border investment and economic cooperation between the United Arab Emirates and Ghana, was part of his government's policy of extending railway lines throughout the country. "The awarding of this contract marks the fulfillment of government's policy to extend the country rail network to the northern parts of the country," he said. This is in line with the government's efforts at extending the rail network beyond Kumasi to ensure a very efficient rail network to boost trade and investment.
"It will also promote cross-border trade and economic activity through improved land transport linkages and improve air passenger and freight linkages across Africa's sub-region," the Minister said.
Under the terms, Kampac Oil ME will design, build, operate and transfer the 800km rail line from Takoradi to Hamile in the Upper West Region to the government. Kampac has secured the mineral and mining rights for key proven reserves valued in excess of $2 billion as part of the concession.
The new standard gauge line will start from Takoradi through Manso, Tarkwa, HuniValley, Dunkwa, Awaso, Nyinahim, Sunyani, Techiman, Bole, and Sawla, Wa to Hamile.
The UAE-based organisations of the consortium include the Jebel Ali-based Gulf African Project Co. Ltd., Dubai-based Suresh Trading Co., Other consortium partners are China National Machinery Import and Export Corporation, Transtech Engineering Corporation, Manferrotaal, Rail One from Germany, Pasiner Edustrial Tesisler Sanayi Ve Ticaret A.S., R.H Railway Consultants, Consolidated Power Projects (Ptg), Geneva-based Optima Asset Management Co., and Smice International.
Charles Ampofo, said the ambitious project was aimed at bringing up the capacity of the key Western Line freight corridor, inland port, and cross-border linkages quickly to re-capture lost freight revenue.
Ampofo said the project seeks to strengthen the country's key freight corridor while stemming the railway network's traffic woes and revenue loss. The project also envisages rehabilitating and maintaining the existing Western Line. Part of the project is the opening of an inland port at Boankra Kumasi aimed at reducing customs clearance pressure at the Tema and Takoradi ports by redirecting freight inland to increase rail traffic and revenue. The expansion of the Takoradi deep-water port facility and plans to reduce congestion at the Tema port are also part of the project.
The project financing was backstopped by the assignment of $2 billion worth of mineral and mining rights in Ghana to the consortium on an exclusive basis.
Kampac Oil Company, a subsidiary of the Kampac Group that was established in 1988, has seen a steady growth over the last decade with 15 offices in 15 countries around the globe. It has diversified business interests.

MENAFN - Middle East North Africa . Financial Network News: Dubai's Kampac Oil signs Dh5.8b Ghana rail contract