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Business News of Tuesday, 6 November 2012

Source: Daily Guide

AGI Opposes GPHA’s Directive

The Association of Ghana Industries (AGI) is appealing to the Minister of Transport to order the Ghana Ports & Harbours Authority (GPHA) to reverse its directive on the “Review of Free Period and Storage Charge on Cargo in the Ports” from 7 days to 4 days.

According to the GPHA, the directive, which is intended to ease congestion at the ports, took effect from November 1, 2012.

“The effect of this decision by GPHA is to raise revenue under the guise of reducing congestion at the port,” the AGI President Nana Owusu Afari said in a press statement.

He indicated that “the GPHA has done this notwithstanding the collective decision of the stakeholders’ workshop against this issue held on 21st August 2012 at the La-Palm Royal Beach Hotel. The Ghana Shippers’ Authority (GSA) has advised against it and AGI supports that stand.”

AGI is of the view that the serious port congestion that the country is experiencing of late is as a result of a number of factors including: tedious processing of securing permits\licenses from state institutions; multiplicity of agencies involved in the clearance process, some of which are located in Accra; lack of capacity among some clearing agents leading to errors in documentation, equipment challenges at main and off-dock terminals; excessive physical examination; delays in ‘sighting and dropping’ of containers; long process of going through the scan and GCNet downtimes, among others.

Mr. Afari noted that addressing these issues will drastically reduce port congestion.

“Increases in fees will further increase the heavy burden in costs that industry and businesses are already shouldering.”