GPHA justifies increase in port tariffs

The Ghana Ports and Harbours Authority (GPHA) on 1st August 2023, implemented its revised and restructured tariff and has taken note of a Press Release issued on 2nd August 2023 by the President of the Ghana Union of Traders Association (GUTA). Consequently, GPHA wishes to clarify as follows:

1. That before the implementation of the tariff, there were a series of engagements with the relevant institutions and major stakeholders including the Ghana Shippers' Authority (GSA) and, the Ship Owners and Agents Association of Ghana (SOAAG). Freight Forwarding Associations, Ghana Union of Traders Association (GUTA), Importers and Exporters Association of Ghana as well as representations from the transit trading community together insights and feedback before implementing the tariff increment.

These engagements started from April to July 2023 and stakeholder concerns were considered, culminating in a reduction of the initial figures captured in the Tariff proposal and an extension of the implementation date from July to August. The final notice of implementation was communicated to all the stakeholders on the 1st

of June 2023. However, some stakeholders still expressed reservations about the percentage increment and the timing.

Despite their concerns, GPHA was compelled to implement the revised tariff due to the current global economic challenges including inflation and currency depreciation which have increased our operational cost.

2. That the scope of the review was such that some tariff items were not increased, while others were restructured to address the distortions and lack of clarity in the

interpretation and application of some tariff items.

3. That GPHA has no specific time frame for tariff reviews. The decision to increase the port tariff comes after careful evaluation and consideration of various factors

impacting the port's operations. Indeed, records show that there was a time when the port tariff was not reviewed for more than a decade.

GHA's operations like any other business are affected by increases in the price of fuel, water, electricity, machinery and equipment among others. While we understand that tariff increments may have a short-term effect on businesses, it is essential to maintain a delicate balance between cost recovery and providing quality services.

4. That GPHA is equally concerned about the low traffic volumes, but that is no reason for the Authority to operate at a loss. Our investigation revealed that the decline in cargo volumes cannot be attributed to GPHA's service charges. GPHA's charges as a component of the total cost of cargo clearance in the port is about 6%. We are currently conducting a study on the individual contributors and their share of to total cost of cargo clearance in our ports so that together, we can engage and find possible solutions.

That GPHA has invested millions of dollars in upgrading port infrastructure and a well-maintained and efficient port system will, in the long run, contribute to a reduction in operational costs for businesses, enhance productivity and facilitate smoother trade operations.

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 comparative port tariffs studies we conducted in our neighbouring Ports of Lome and Abidjan, to ensure that at every given time, our ports will remain competitive in terms of price and quality of services. We wish to note that even with the increment of 1st August 2023, overall, our port tariffs remain competitive compared to our neighbours.

7. That transparency and accountability remain at the core of GPHA's decision-making process, ensuring that the interest of all parties is considered. We are therefore committed to transforming the Ports of Chana into the leading trade and logistics

hub in West Africa.

Signed

ESTHER GYEBI-DONKOR (MRS.)

GENERAL MANAGER MARKETING AND CORPORATE AFFAIRS