• $308M Boankra dry port aims to handle 2M tons of freight per year

• Project to ease pressure on Tema and Takoradi, boost regional trade

• Long-term success hinges on rail upgrades and fiscal sustainability

Ghana bets on the Boankra Inland Port to advance its National Logistics Strategy. Worth an estimated $308 million, the logistics platform under construction near Kumasi in the Ashanti region has been receiving special attention from authorities who, during a recent visit, reiterated their intention to speed up the project.

As reported by local press in July 2024, Phase 1 of the construction was 40% complete. The platform, according to authorities, will alleviate pressure on maritime ports like Tema and Takoradi, which are experiencing growing traffic to supply both the local market and landlocked neighbor countries like Burkina Faso and Mali, the AES community countries. Due to tensions with ECOWAS following military coups, these countries are seeking to diversify their usual supply sources and are increasingly prioritizing Ghanaian and Togolese ports.

This supports Accra's strategy of investing in port and logistics infrastructures. Currently, the country is developing a transnational railway network to intensify flows to Burkina Faso. The dry port should facilitate direct transshipment of containers, customs storage, handling, and the development of integrated logistics services.

Connected to the future Accra–Kumasi–Paga railway line, the site constitutes a crucial link in the intermodal transport network that the government is seeking to establish to smoothen domestic and regional trade.

At present, transport and logistics costs in Ghana, like in many other African countries, account for between 50% and 75% of the retail price of goods, according to a report cited by the African Development Bank (AfDB). This situation is largely attributed to port congestion, slow customs procedures, and lack of coordination among different transport modes.

The development of Boankra aims to reduce these bottlenecks. At full capacity, the dry port could handle up to 2 million tons of freight annually while accelerating transit times to northern Ghana and the West African hinterland. This could enhance Ghana's attractiveness as a regional logistics hub, in line with the economic integration strategy promoted by the African Continental Free Trade Area (AfCFTA).

Despite these aspirations, the project is not without risks. Ghana, facing budgetary tensions and high public debt, will need to ensure the dry port's long-term financial viability. There have also been calls to reinforce inter-institutional coordination to prevent Boankra from becoming a white elephant. The near two-decade project is structured around a public-private partnership (PPP) financing model.

The plan's success will also depend on upgrading associated railway and road infrastructures, a requirement for ensuring smooth connectivity with production areas and export ports.