The Ghana Shippers' Authority presented strategies to mitigate high port transit costs, including enhancements in port infrastructure and stakeholder collaboration. Despite some national efforts, challenges such as high demurrage rates and customs inefficiencies persist. Successful implementation hinges on improved cooperation among stakeholders, appropriate equipment, and strengthened regulatory frameworks.

1. Ghana Shippers’ Authority - Providing Shipping Solutions
PORT TRANSIT COST
– SOME NATIONAL EFFORTS TO
INFLUENCE THE QUALITY OF PORT
SERVICE DELIVERY AND TO REDUCE
PORT TRANSIT COSTS
www.shippers.org.gh
info@shippers.org.gh

2. Ghana Shippers’ Authority - Providing Shipping Solutions
PRESENTED AT THE 13TH ROUND TABLE
CONFERENCE OF MANAGING DIRECTORS
OF PMAWCA, 29-30 JUNE 2015, ABIDJAN
BY
ABRAHAM OCLOO
GHANA SHIPPERS’ AUTHORITY

3. Ghana Shippers’ Authority - Providing Shipping Solutions
ORDER OF PRESENTATION
1. Introduction
2. Some National Efforts To Mitigate High
Port Transit Costs
3. Challenges to National Efforts
4. The Role of Ghana Shippers’ Authority
5. Challenges to GSA Initiatives
6. Conclusion

4. Ghana Shippers’ Authority - Providing Shipping Solutions
1. INTRODUCTION
- High cost of doing business hinders
development
- High Port transit costs, high cost of
doing business
- This negatively affects port and country
competitiveness

5. Ghana Shippers’ Authority - Providing Shipping Solutions
- What is Port Transit Cost?
+ cost of moving cargo from vessel
through port till warehouse; two aspects
+ direct costs– port dues, vessel
handling, stevedoring, terminal charges,
etc
+ defray cost of facilities and services
+ other direct costs include charges
of other service providers & regulatory
agencies

6. Ghana Shippers’ Authority - Providing Shipping Solutions
+ indirect costs – time spent in moving
cargo through port; more time, high cost
= complicated customs
processes,
= destination inspection
problems,
= cargo release delays at
shipping lines
= ICT problems
= shippers lack of funds,
= discrepancies in declarations,
etc

7. Ghana Shippers’ Authority - Providing Shipping Solutions
2. SOME NATIONAL EFFORTS TO MITIGATE
HIGH PORT TRANSIT COSTS
- Ports are sources of revenue
- GPHA have sought PPP funding to
dredge, expand and acquire equipment for
the ports to reduce congestion and cost:
+ 24/7; automated identification &
retrieval of boxes; plans to have
containers scanned before exiting to
off-dock terminals; new gantry
cranes;

8. Ghana Shippers’ Authority - Providing Shipping Solutions
- Destination Inspection System
- Ghana Customs Management System
and Ghana Community Network or
GCNet, an EDI system
- Risk Management and Scanners – to
reduce physical examination of boxes
- stakeholders meet to discuss issues
of concern and find mutual ways of
solving problems

9. Ghana Shippers’ Authority - Providing Shipping Solutions
3. SOME CHALLENGES TO THE NATIONAL
EFFORTS
- 85% of importers pay demurrage and
rent
- 7 day demurrage-free period not enough
- ports needs to be free of congestion
- meanwhile cargo throughput is increasing
2000 – 2013 ; over 8.3m tons – 17.7m tons
- GCNet to reduce human interactions yet
hard copies are sent the customs

10. Ghana Shippers’ Authority - Providing Shipping Solutions
- Customs reject valuations from
destination inspection, why?
- scanner and physical examination
problems
- talks of mobile or fixed scanners for off-
dock terminals?!

11. Ghana Shippers’ Authority - Providing Shipping Solutions
4. THE ROLE OF GHANA SHIPPERS’
AUTHORITY
- its mandate is to protect and promote the
interests of shippers in relation to port,
ship and inland transport problems in order to
ensure safe, reliable and cost effective
shipping
- it does this through:
+ infrastructure – Inland port at Boankra
+ integrated warehousing
= TLP(ppp); bonded warehouses

12. Ghana Shippers’ Authority - Providing Shipping Solutions
- negotiation of charges & service
standards
+LI 2190 of 2012
- Advance Shipment Information (ASHI) –
electronic system to receive shipment
information before vessel arrival –LI 2190
(2013 studies – US$75m demurrage;
GHC30m rent)
- other benefits of ASHI
+ real time information for pre-arrival
clearance
+ information to GPHA, terminals for
planning delivery

13. Ghana Shippers’ Authority - Providing Shipping Solutions
+ advance information for DICs &
Customs for risk management planning, etc
- Collaboration and Consultation
+ interacts with stakeholders to find
innovative ways to reduce delays and
cost = GCNet & clearance process
+ Improved Road Transport Governance
IRTG/OPA – UEMOA, West Africa
trade hub, Borderless,
- Information and Training
+ through seminars and forums
+ shipper committees

14. Ghana Shippers’ Authority - Providing Shipping Solutions
5. CHALLENGES TO GSA INITIATIVES
- negotiation difficulties
+ set charges without GSA; refusal
to negotiate
- outcry against ASHI - difficult to
understand since LI was discussed
before signing into law
- has implementation exposed some
selfish practice?
- Should LI 2190 be made stronger?

15. Ghana Shippers’ Authority - Providing Shipping Solutions
6. CONCLUSION
- Successful efforts to influence quality port
service delivery and competitive cost
depend on:
+ necessary infrastructure; appropriate
equipment; innovation and automation
of service;
+ all stakeholders (esp. govt.
agencies) need to collaborate,
corporate and compliment each
others efforts

16. Ghana Shippers’ Authority - Providing Shipping Solutions
+ Customs should take over valuation
of import cargoes (steps reduced)
+ clearing agents activities should be
streamlined
+ GSA LI 2190 needs strengthening in
area of negotiation
+ Govts. needs to increase
diversification of the sources of revenue in
order to reduce pressure on the ports
+ more efforts towards value addition
to primary products

17. Ghana Shippers’ Authority - Providing Shipping Solutions
THANK YOU FOR THE
ATTENTION