Demurrage and rent payments remain the biggest disincentive doing business at the country’s ports .

By: Benjamin Xornam Glover, TEMA The Chartered Institute of Logistics and Transport (CILT) Ghana has organized a one day lecture to ascertain causes and impact of demurrage and rent payments on the cost of doing business at the country’s ports . The lecture also formed part of a continuing personal development (CPC) with resource persons from the Ghana Shippers Authority ,(GSA) Ghana Ports and Harbours Authority(GPHA) Ship Owners and Agents Association (SOAAG) and Ghana Institute of Freight Forwarders .(GIFF). The Branch Manager of the Ghana Shippers Authority (GSA) Mr Emmanuel Arku in his presentation stated that demurrage which is paid when there is a delay in loading or offloading for the year 2013 amounted to $ 73 million He said Gh¢ 32 million were collected as rent charges to the delays in clearance of cargoes. According to Mr Arku , if shippers could clear their cargoes within the 7 days grace period generally provided by the Terminal Operators and Shipping Lines, there would be no such costs. He noted that such high costs remain one of the biggest disincentives in the growth of import and export businesses in the shipping industry in the country. He partly attributed the delays in clearing cargo at the ports to the increase in cargo without the requisite port capacity such as infrastructure, equipment, cargo handling space, efficient transactional processes, and up-to-date technology, among others. Mr Arku said other factors identified include the lack of effective planning and implementation for port infrastructure stressing that “there seem to be lack of adequate planning into the future or inability to implement the plans for the Ports . The Tema Branch Manager of GSA said lack of effective coordination among port stakeholders such as the Port Authority, Terminal Operators, the Shipping Lines/Agents, the Customs Division the Destination Inspection Companies, the Security Agencies, Custom House Agents, and Shippers, also contribute to challenges that add up to the cost of doing business. Mr. Arku made a proposal of short, medium and long term measures which in his view will help to reduce cost of transaction at the Ports. . He indicated that demurrage and rent are avoidable costs and stressed that the Ports represent a key asset for economic development, therefore inefficiencies and delays that characterize operations at the ports must be dealt with as a matter of urgency. Other speakers also indicated that most of the delays at the ports were avoidable if the importers did the right thing. The Executive Secretary of SOAAG, Mrs Perpetual Osei Bonsu defended the collection of demurrage on containers explaining that for then that does not equate the revenue accruing in freight. The Acting Marketing and Public Relations Manager of GPHA, Nana Esi Söderberg stressed the need for a clear knowledge on the part of consignees of the various port charges and how they accrue as well as the implications and benefits of proper planning with respect to importing or exporting cargo in order to avoid delays in the clearance of cargo. The Vice President of CILT, Mr Albert E. Ofori said the Continuing Personal Development programme was one of several periodic forums to educate and equip stakeholders with the requisite knowledge to enhance their competitiveness. -End- Writers email: Benjamin.glover@graphic.com.gh Quick Read  Demuurage and rent charges have been identified as one of the biggest disincentives in the growth of import and export businesses in the shipping industry in the country.  According to the GSA if shippers could clear their cargoes within the 7 days grace period generally provided by the Terminal Operators and Shipping Lines, there would be no such costs. Number Crunch $ 73 million - the amount paid as demurrage in 2013 per records of the Ghana Shippers Authority