The Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Agare and Minister of Transport, Joseph Bukari Nikpe have urged the Ghana Ports and Harbours Authority (GPHA) to deploy its expertise and temporary measures to speed up the clearance of clinker and reduce demurrage costs for cement manufacturers.
According to the ministers the delays in clearing clinker were increasing production costs for cement manufacturers and could eventually force them to raise prices.
They have therefore, appealed to port authorities to facilitate the movement of cargo and help manufacturers avoid excessive demurrage charges.
Meeting
This was revealed during a meeting with officials of the Ghana Ports and Harbours Authority and a tour of the Tema Port on Friday, September 11.
The visit was aimed at assessing the situation surrounding recent congestion concerns, which have raised fears of a GH¢12 increase in cement prices.
The two ministers first met with the leadership of the GPHA before holding a separate meeting with members of the Cement Manufacturers Association of Ghana (CMAG) to swiftly address the challenges and find an amicable solution to prevent a potential increase in cement prices.
The meeting was also meant to welcome a Sierra Leonean delegation, led by the Minister of Fisheries and Marine Resources, Mrs Princess Dugba, visiting Ghana to study the development and management of the country’s ports and apply lessons to Sierra Leone’s ongoing port projects.
Notable among the attendees were Director General of GPHA, Major General Paul Seidu Tanye-Kulono, Sierra Leone High Commissioner to Ghana, H. E. Mohamed Hassan-Kaisamba, Sierra Leone's Deputy Minister of Fisheries and Marine Resources, Ahmed Saybom Kanu and Director of Trade at the Ministry of Trade, Agribusiness and Industry, Mr Kofi Addo.
Government help
Mrs Ofosu-Agare mentioned that GHACEM has so far maintained its cement prices despite the rising costs, and said the company was relying on government to help resolve the port-related challenges before considering any price increase.
“As Minister responsible for imports and exports, the ports remain my most important ally, and anytime there is a challenge, we come here and resolve it. Today, I am here because cement manufacturers are suffering."
“The cost of their production is going up because of demurrage. We are not blaming the ports and harbours; it is an issue that has come up because, obviously, the economy is doing well and more activity is happening at the ports. So, I am here today to see how you can bring your expertise to bear to make sure that we are able to facilitate the volume and help us get the clinker out to avoid high costs,” she said.
She stressed the need for swift action, warning that once cement prices rise, the increases often trigger higher costs in other areas, including rent.
She therefore called on the Transport Minister and GPHA Director General to work together to resolve the clinker clearance bottleneck and prevent a potential cement price increase.
Congestion at ports
Addressing the issue of congestion at Ghana’s ports, Mr Nikpe said rising import volumes and inadequate expansion of port infrastructure are putting increasing pressure on existing facilities.
He stated that Ghana has not undertaken significant port expansion since the development of Terminal 3, despite growth in the economy and trade.
He said government is therefore working to expand port facilities, including the development of the Keta Port, to accommodate increasing cargo volumes and improve efficiency.
The Transport Minister also called for greater private-sector participation and partnerships to support the expansion of Ghana’s port infrastructure.
He stressed that decongesting the ports is essential to preventing additional costs from being passed on to consumers and maintaining the country’s position as a preferred shipping destination, particularly for landlocked countries in the region.
"We are here to tell management that we have to all put hands on deck to see how we decongest our port, to see how we will serve everybody who calls on us. So that there is no pass-on cost to the general population of the Ghanaian people," he stated.
Welcoming the Sierra Leonean delegation, Mr Nikpe called for stronger cooperation between Ghana and Sierra Leone, urging African countries to share experiences and solutions to common challenges.
"We, as Africans, we cannot look for any solution from any part of this world, except for Africa. Our issues are similar, our problems are the same, and we are the same people. That is why it is very important that we find solutions from ourselves to be able to solve our problems that affect the same people."
"We are still one and that is why it is very important that any issue of success in any of our countries, we are able to tap in and develop to serve the African people," he said.
