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McDan Group has officially partnered with the Ghana Ports and Harbours Authority (GPHA) by signing a memorandum of understanding (MoU) aimed at enhancing marine transport and logistics capabilities in Ghana.
This collaboration focuses on the development of a marine terminal facility on the Volta River, designated as the “ElectroChem Terminal, Port of Ada.” The terminal will primarily manage and export bulk natural and processed salts.
Founded under the Ghana Ports and Harbours Authority Act of 1986, GPHA is tasked with overseeing and regulating the nation’s ports, while McDan Group is a private company in Ghana that specializes in various sectors including shipping, freight forwarding, customs clearance, cargo handling, transportation, real estate, and agriculture. Its salt production is managed through its subsidiary, ElectroChem Ghana Limited.
The partnership addresses McDan’s need for more efficient logistics solutions for salt exports, particularly due to the challenges posed by road haulage to the distant Port of Tema. The main goal of the MoU is to establish a terminal that will streamline salt exports, reduce logistics costs, and meet both regional and global market demands.
Development Plans
The project will involve several key components, including:
- Feasibility Studies: Conducting assessments to determine technical, economic, and environmental viability.
- Navigation Infrastructure: Developing access channels and navigation aids for safe shipping from the Atlantic Ocean to the terminal.
- Port Facilities: Constructing quay walls, berths for vessels, and terminal facilities for effective salt management and cargo services.
- Road Network Improvements: Upgrading road access to improve connectivity between Ada and major highways.
Collaboration Framework
A Joint Project Development Team will be established to oversee technical meetings, stakeholder engagement, and operational protocols. McDan Group will manage the financial aspects of the project, while GPHA will assist with obtaining necessary permits and approvals.
Economic Impact
This initiative aims to enhance Ghana’s salt production capacity, with ElectroChem’s output potentially exceeding 2 million tonnes annually. This increase is anticipated to create jobs, reduce reliance on salt imports, and improve the socio-economic conditions of the Ada community.
Significant progress has already been made, including the acquisition of the port site, completion of feasibility studies, and stakeholder engagement. Ongoing discussions with potential investors are focused on securing financing for the project.
The MoU was signed by Dr. Daniel McKorley on behalf of McDan Group and Michael Achagwe Luguje, the Director General of GPHA. Dr. McKorley emphasized that the MoU represents a crucial step toward strengthening Ghana’s marine sector and contributing to the nation’s broader economic development.
