The recent port tariff change has been justified by the Ghana Ports and Harbours Authority (GPHA).
The Ghana Union of Traders Association (GUTA) expressed concerns, and the GPHA responded, saying that "like all other increments done in the past, the rates of increment in this year's tariff adjustment were informed by the outcome of a comparative port tariffs studies we conducted in our neighboring Ports of Lome and Abidjan, to ensure that at any given time, our ports will remain competitive in terms of price and quality of services."
The GPHA stated in a press statement dated August 3, 2023, issued by Ms. Esther Gyebi-Donkor, General Manager of Marketing and Corporate Affairs, that "We wish to note that even with the hike of 1st August 2023, overall, our port rates remain competitive compared to our neighbors."
The Ghana Union of Traders' Association (GUTA) had requested that the GPHA postpone the implementation of its new prices.
GUTA preferred that the GPHA "consult stakeholders since the adverse impact of these hikes would further compound the high cost of doing business."
Dr. Joseph Obeng, the president of GUTA, released a press release on Wednesday in Accra stating that GUTA's attention had been "called to outrageous increases in Port Tariffs" published by the GPHA.
According to Mr. Obeng, "the announcement comes as a surprise to our members, who continue to reel under the consequences of the numerous taxes and levies that have been implemented recently, as well as the economic difficulties afflicting the nation."
He said that the poor traffic at the nation's ports was a result of the high cost of doing business, a complaint made by the port authorities themselves.
He continued by saying that "this decision will further affect rises in shipping line charges."
A copy of the GPHA's news release is attached below.
PRESS RELEASE
AUCTION IN THE GPHA TARIFF
On August 1, 2023, the Ghana Ports and Harbours Authority (GPHA) adopted its updated and restructured tariff and took note of a press release released by the president of the Ghana Union of Traders Association on August 2, 2023. (GUTA).
Thus, GPHA would like to clarify the following:
1. Prior to the tariff's implementation, a number of interactions with important institutions and parties were held, including those with the Ghana Shippers' Authority (GSA), the Ship Owners and Agents Association of Ghana (SOAAG), freight forwarding associations, the Ghana Union of Traders Association (GUTA), the Importers and Exporters Association of Ghana, and representatives from the transit trading community.
Stakeholder concerns were taken into account throughout these discussions, which lasted from April to July 2023. As a result, the initial amounts included in the Tariff proposal were reduced, and the implementation date was moved from July to August. On June 1st, 2023, the final notice of implementation was distributed to all parties. Several stakeholders, however, continued to voice concerns about the timing and percentage increase.
GPHA had to adopt the enhanced rate despite their reservations because of the current economic difficulties facing the world, including inflation and currency depreciation, which have raised our operating costs.
2. The review's scope resulted in certain tariff items not being increased while others were reorganized to correct distortions and ambiguities in their interpretation and application.
3. GPHA has no set deadline for reviewing tariffs. A thorough analysis and study of all the variables affecting the port's operations led to the decision to raise the port fee. Records do indeed indicate that there was a period of time when the port fee was not reviewed for more than ten years.
Like any other firm, GHA's operations are impacted by price rises for things like fuel, water, power, machinery, and equipment. Although we are aware that a tariff increase may have an immediate impact on business operations, it is crucial to maintain a careful balance between cost recovery and offering top-notch services.
4. The Authority shouldn't run at a loss notwithstanding the GPHA's worry over the low traffic volumes. Our analysis showed that GPHA's service fees cannot be the cause of the decrease in cargo quantities. The fees charged by GPHA make up around 6% of the entire cost of clearing cargo in the port. We are currently researching the many stakeholders and how much each contributes to the overall cost of cargo clearance in our ports so that we can collaborate and identify potential solutions.
5. That the GPHA has invested millions of dollars in modernizing port infrastructure, and that a well-maintained and effective port system would, over time, help firms save operational costs, boost productivity, and facilitate more seamless trade operations.
6. To ensure that at all times, our ports would remain competitive in terms of price and service quality, the rates of increment in this year's tariff adjustment were guided by the findings of a comparative port tariffs study we conducted in our neighboring Ports of Lome and Abidjan. We want to emphasize that, notwithstanding the increase that will take effect on August 1, 2023, our port fees are still reasonable when compared to those of our neighbors.
7. That the GPHA's decision-making process continues to be based on transparency and accountability, ensuring that the interests of all stakeholders are taken into account. Thus, we are dedicated to making the Ports of Ghana the premier logistics and commerce center in West Africa.
Signed
ESTHER GYEBI-DONKOR (MRS.)
GENERAL MANAGER MARKETING AND CORPORATE AFFAIRS
#GPHA #GHANA
