Ghana Shippers' Authority enhances transit trade cooperation with trade corridors

The recent decline in the volume of transit trade along Ghana’s transit corridors underscores the need for proactive measures to address the underlying factors contributing to this trend.

Throughout 2023, data provided by the Ghana Ports and Harbours Authority (GPHA) illustrates varying cargo transportation patterns along Ghana’s transit corridors. Starting with 422,501 metric tonnes in the first quarter, there was a slight uptick to 454,182 metric tonnes in the second quarter.

However, this momentum faltered in the third quarter, leading to a decrease to 432,969 metric tonnes. The downward trajectory persisted into the fourth quarter, culminating in a further decline to 405,770 metric tonnes.

As a result, there was a marginal decrease of 16,731 metric tonnes in the volume of cargo transported from the Tema and Takoradi ports to landlocked countries between January and December 2023.

The Ghana Shippers’ Authority (GSA) has closely monitored the situation and taken steps to address the causes of the decline. These include engagements with key stakeholders such as the Joint Association of Port Transport Union (JAPTU) and regulatory agencies, among others, and a review of existing Memoranda of Understanding (MOUs) with counterpart Shippers Councils in neighboring nations.

Speaking on behalf of the CEO, Mr. Kwesi Baffour Sarpong, during the 2nd Quarter Transit Shipper Meeting in Accra on Thursday, 18th April 2024, Mrs. Sylvia Asana Dauda Owu, the Director of Operations, addressed representatives from the Shippers’ Councils of Burkina, Niger, and Mali. She underscored the necessity to review the MOUs to align with the evolving industry landscape.

"We have previously signed MOUs with you, and many of them have expired. It is therefore imperative that we revisit these agreements urgently, considering the developments within the industry," she emphasized.

The GSA is committed to fostering strong and cordial working relationships with Ghana’s trade partners, including Burkina Faso, Mali, and Niger. These relationships are frequently formalized through Memoranda of Understanding (MOUs) to ensure the equitable distribution of cargo for transit trucks from the landlocked countries and to safeguard their interests while conducting business in Ghana.

These MOUs serve as vital mechanisms to uphold fairness, transparency, and mutual cooperation between parties, thereby facilitating smoother transit operations and strengthening regional trade relations.

Representatives from the Shippers’ Councils of Burkina Faso, Mali, and Niger welcomed the initiative by the GSA and expressed their willingness to participate in the review of the MOUs aimed at enhancing the sector.

Mr. Daniel Ofosu Mintah, Deputy Commissioner of the Customs Division of the Ghana Revenue Authority responsible for State Warehouses, also informed committee members on the laws and procedures governing the Handling of Transit Cargo on UCL and urged attendees to familiarize themselves with the provisions for operational efficiency and cost-effectiveness.

The GSA promised to issue their report and position on UCL before the end of June 2024.