By: Benjamin Nii Nai Anyetei
The State Interests and Governance Authority (SIGA) has proposed the liquidation of the Ghana Railway Company Limited (GRCL) and the absorption of its employees into the Ghana Railway Development Authority (GRDA) as part of a major restructuring of Ghana’s railway sector.
The proposal is contained in SIGA’s 2025 State Ownership Report, which highlights prolonged financial, operational and labour challenges confronting the Ghana Railway Company.
According to the report, the challenges have contributed to the suspension of GRCL’s operations despite ongoing government efforts to expand and modernise the country’s railway network.
Under the proposed restructuring, the GRDA would be transformed into a combined commercial and regulatory institution, taking responsibility for both railway development and commercial operations.
SIGA believes the proposed arrangement could address longstanding institutional challenges and improve the efficiency and sustainability of Ghana’s railway system.
Tema-Mpakadan line under GRDA
The report noted that the 97-kilometre Tema-Mpakadan railway line commenced commercial operations under the GRDA in October 2025.
The development forms part of government’s broader efforts to revive and expand railway transport as an alternative means of moving passengers and goods across the country.
Government has also introduced a phased support package covering salary arrears and critical infrastructure refurbishment within the railway sector.
Restructuring state enterprises
SIGA’s proposal forms part of a broader push to address persistent challenges within underperforming state-owned enterprises.
The Authority has emphasised the need for decisive action where state entities face prolonged financial and operational difficulties, with the objective of improving efficiency and creating sustainable value from public assets.
For the railway sector, the proposed liquidation of GRCL and integration of its workforce into GRDA would represent a significant institutional change.
The proposal, however, is subject to the necessary government and legal processes before any restructuring can be implemented.
SIGA’s assessment comes at a time when Ghana is seeking to position railway transport as a key component of its national infrastructure and economic development strategy, particularly for the movement of freight and passengers.
