Thursday, 22 October

Finance Ministry convenes high level meeting over port congestion, demurrage & rent charges

Business
Samson Asaki Awingobit, the Executive Secretary of Importers and Exporters Association of Ghana

A high-level stakeholder meeting convened by the Minister of Finance has been held to address the worsening congestion, delays, demurrage and rent charges at Ghana's ports.

The meeting, which was chaired by the Deputy Minister of Finance, follows a statement issued yesterday calling on government to intervene and bring together key players at the port to find lasting solutions.

Speaking after the meeting, Samson Asaki Awingobit, the Executive Secretary of Importers and Exporters Association of Ghana (IEAG), explained the importance and responsibility of the Finance Minister in leading such engagement.

“Yesterday, we issued a statement calling on the government that the Finance Minister should lead a government high-level meeting, bringing the political parties, especially the key players at the port together to discuss about the recent port congestions, the recent delays at the port that lead up to most important end up being rent and demurrage."

According to him, demurrage charges are paid to shipping lines and are eventually taken out of the country in dollars while rent charges go to Meridian Port Services (MPS).

"When you talk of rent, it goes to MPS because most of the time, importers pay their duties and waiting for the opportunity to transfer from MPS to... a container yard, or to TBT...or to the transit cargo for them to clear. Just because MPS will not allow GPHA to also bring in their own reach stacker machine to load the GPHA trucks that are at MPS. Sometimes MPS can say that their boom barrier is not opening for operating, and that can take for hours, that can take for days, which is not the best for us."

He said the Ministry quickly responded to their concerns and convened a meeting today though some key institutions were absent.

"When we went in, all of us were there, but some institutions weren't in. In fact, FDA, EPA...and others. So the Deputy Minister was chairing the meeting. So there's a need for him to escalate. Because what we saw in today's meeting is that government is really available and prepared to take decisive decisions."

He revealed that government is considering a directive that once an importer has paid his duty, customs should release the cargo even if shipping lines claim their system is down or terminal operators demand additional charges.

“Government is even saying that if at the end of the day, when the government wants to see that if an importer pays his duty, and shipping lines is saying my system is down, terminal operators are saying at least customs officers should be able to release you to go."

He added that government is also considering allowing importers to be cleared elsewhere to reduce the numbers and congestion at the port.

"If it's about their mortgage, or their rent, or their handling charges, they can chase the importers elsewhere, so that they will reduce the numbers in the port from more congestion."

The stakeholders were expecting explicit Standard Operating Procedures (SOPs) at today's meeting but some critical agencies were missing including the Ship Owners and Agents Association (SOAAG), FDA, Ghana Standards Authority, EPA, and Energy Commission.

"We were expecting to see explicit SOPs today. But the Deputy Minister said that there were issues that were raised...SWAC itself wasn't even in the meeting. Shipowners and Agent Association wasn't in the meeting. Then again, FDA, Standards Authority, EPA, Energy Commission, whose issues that were raised were also not in the meeting."

Despite this, he said one positive outcome was recorded regarding customs examinations.

 "Those who say that if we clear goods at the port right now, everything goes to customs examination, they say that from now, the directive is that only foods, chemicals, and there was another item, only three items, that you can go to customs examination."

He described it as a welcome development and said stakeholders now look forward to the second meeting where more decisive directives are expected.

"That is the good news that we've got today. So we look forward to see the second coming meeting."

 

 

Source: Edem Afanou/classfmonline.com