When the Tema PSC Shipyard was established in 1965, it was envisioned as a cornerstone of Ghana’s industrial development. Situated in the heart of the country’s maritime hub, the shipyard was designed to position Ghana as a leader in ship repair, maintenance, and, ultimately, shipbuilding. For decades, it thrived, attracting vessels from across West Africa and beyond. It was a major employer, a generator of foreign exchange, and a symbol of Ghana’s industrial ambition. However, as Ghana marks 60 years since the shipyard’s inception, it stands not as a beacon of progress but as a cautionary tale of neglect.

The shipyard’s decline has been gradual but devastating. Years of underinvestment, mismanagement, and changing political priorities have left it in a state of disrepair. What was once a bustling facility with cutting-edge equipment and a skilled workforce has now become an underutilized shell of its former self. Instead of expanding its capabilities to meet the growing demands of the global maritime industry, the shipyard has struggled to maintain even basic operations. Today, it services only a fraction of the vessels that once docked at its facilities, forcing many shipowners to seek repair services in foreign countries.

The deterioration of the Tema PSC Shipyard has had far-reaching economic consequences. One of the most significant impacts has been the massive revenue losses suffered by the country. Ship repairs and maintenance are highly lucrative industries, with vessels requiring periodic servicing to remain operational. Ghana’s strategic location along major shipping routes should have made it a prime destination for ship repair services. Instead, due to the shipyard’s inefficiencies, Ghanaian and foreign vessels alike have been forced to turn to countries such as Senegal, Nigeria, and even Europe and Asia for their ship repair needs.

This outsourcing of ship repair services has led to a substantial loss of foreign exchange. The millions of dollars that should have been retained within Ghana’s economy are instead flowing to other nations, strengthening their maritime industries while weakening Ghana’s. The economic leakage is not just about lost revenue—it is about missed opportunities for growth, industrialization, and job creation.

At its peak, the Tema PSC Shipyard provided thousands of direct and indirect jobs. Welders, engineers, electricians, fabricators, and maritime technicians all found stable employment within the shipyard. The facility also played a crucial role in training the next generation of maritime professionals, offering apprenticeships and hands-on experience that helped develop a skilled workforce.

With the shipyard’s decline, these job opportunities have all but disappeared. Skilled workers have been forced to either leave the country in search of employment or transition to unrelated industries. This has contributed to a growing brain drain in Ghana’s maritime sector, depriving the country of the expertise needed to rebuild its industrial base. Furthermore, technical universities and vocational training institutions that once relied on the shipyard for industrial attachments have struggled to find alternative training grounds for their students, weakening the overall quality of technical education in Ghana.

The ripple effect of job losses extends beyond the shipyard itself. Businesses that once supplied raw materials, spare parts, and specialized services to the shipyard have suffered immense losses. Suppliers of welding rods, metal sheets, lubricants, paints, and other essential ship components have either gone out of business or had to scale back their operations. The economic impact of this collapse cannot be overstated—what was once a thriving ecosystem of maritime-related businesses has been systematically dismantled due to government neglect and a lack of strategic vision.

A nation’s maritime strength is not determined solely by the efficiency of its ports; complementary services such as ship repairs, dry-docking, and maritime manufacturing are essential in making a country a competitive player in the global shipping industry. Ghana’s failure to maintain a modern and fully functional shipyard has severely weakened its maritime competitiveness.

Neighboring countries have recognized the value of ship repair and have invested heavily in modernizing their facilities. Senegal, for instance, has positioned itself as a leading hub for ship maintenance in West Africa, drawing vessels that could have docked in Ghana. As a result, Ghana has lost not only direct revenue from ship repairs but also the secondary economic benefits that come with being a preferred maritime destination.

This loss of competitiveness extends beyond ship repairs. The absence of a well-functioning shipyard has hindered the development of a local shipbuilding industry. Countries with strong shipbuilding capabilities can reduce their reliance on imported vessels, creating a self-sufficient maritime economy that supports local industries and generates employment. Ghana, however, remains dependent on foreign-built vessels, a situation that drains foreign reserves and limits the country’s ability to build a sustainable maritime sector.

The good news is that the decline of the Tema PSC Shipyard is not irreversible. With the right investment and policy direction, the facility can be restored to its former glory and repositioned as a major economic driver for Ghana. A well-planned revitalization effort could transform the shipyard into a regional leader in ship repairs and maritime services, generating millions of dollars in annual revenue and creating thousands of jobs.

A modernization plan would require substantial investment—an estimated $200 million to upgrade existing infrastructure, acquire modern equipment, and retrain workers. While this may seem like a large sum, the potential returns far outweigh the initial costs. A fully functional shipyard could attract a significant share of the ship repair market in West Africa, reducing capital flight and increasing Ghana’s foreign exchange earnings.

Revitalizing the shipyard would also have significant job creation potential. A modern facility would need skilled workers across various disciplines, from engineering to logistics, providing stable employment for thousands of Ghanaians. Additionally, the shipyard could collaborate with technical universities and vocational training institutions to develop specialized programs that equip young professionals with the skills needed to sustain Ghana’s maritime industry.

Beyond ship repairs, a revitalized Tema PSC Shipyard could serve as the foundation for a shipbuilding industry in Ghana. With improved infrastructure and expertise, the country could start manufacturing small and medium-sized vessels for fishing, coastal trade, and inland water transport. This would not only reduce Ghana’s reliance on imported ships but also create a sustainable industrial sector that supports local businesses.

Ghana’s maritime sector is at a crossroads. The decline of the Tema PSC Shipyard has been a costly mistake, draining the economy of valuable resources and weakening the country’s industrial base. However, Ghana still has the opportunity to reclaim its place as a leader in the West African maritime industry. The 60th anniversary of the shipyard should not be a moment of nostalgia—it should be a turning point, a call to action for policymakers, investors, and industry stakeholders to prioritize its revitalization.

The economic arguments for restoring the shipyard are undeniable. The facility has the potential to generate substantial revenue, create jobs, enhance industrial training, and strengthen Ghana’s maritime competitiveness. The alternative—continued neglect—will only result in further economic losses and missed opportunities.

As Ghana reflects on six decades of the Tema PSC Shipyard, the focus should be on the future. A well-funded, strategically managed shipyard can be a game-changer for the nation, driving economic growth and ensuring that Ghana remains a key player in the global maritime industry. The moment for decisive action is now.

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About the authors

Albert Derrick Fiatui is the Executive Director at the Centre for International Maritime Affairs, Ghana (CIMAG), an Advocacy, Research and Operational Policy Think- Tank, with focus on the Maritime Industry (Blue Economy) and general Ocean Governance. He is a Maritime Policy, Ocean Governance and Coastal Development Expert.

Email: [email protected] /[email protected]

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