Minister Steps in GRC, GBC Impasse

The minister of Ports, Harbours and Railways, Prof. Christopher Ameyaw Akumfi has intervened in the tariff adjustment war, which is going on between the management of the Ghana Railways Company (GRC) and the Ghana Bauxite Company (GBC), which has almost marred the cordial relationship between the two companies.

As his first step to find an amicable solution to the problem, the minister has directed that the intended appointment of an independent consultant to cost the operations of the two companies and decide the realistic tariff paid by GBC be suspended.

A deputy managing director of the GRC, Mr. Rufus Quaye who disclosed this to the Chronicle when he was contacted on his cell phone last week, said the minister had instead directed the management of the two companies to sit on a round table and renegotiate for an acceptable tariff within two weeks.

The minister's decision to cancel the appointment of an independent consultant to cost the operations of the two companies was borne out of the fact that it would delay the negotiation process which started a long time ago but has, up to date, not achieved any success.

Mr. Rufus Quaye further told the Chronicle that in his desire to have the issue resolved as early as possible, the former university don has scheduled a meeting for the coming Tuesday, June 3 for all the parties to meet in Accra to start the negotiation which he himself is expected to preside over.

When asked whether his management which has already been threatened with strike action by the workers over the low tariff being paid by the GBC - thus hampering the progress of the company - have accepted the minister's intervention in the impasse, Mr. Rufus Quaye responded in the affirmative but said GBC has made known their intention to fly in an expert from their parent company in Canada to guide them in the negotiation process.

According to him, GRC has not, and will not object to their decision to fly in an expert because facts which they hope to table at the negotiation, will always remain facts that could not be disputed. "Akli, I think you can testify to the fact that fuel prices have gone up by almost 100%. Materials that help us to run the company have also gone up by the same margin.

"These are all facts one cannot dispute", he noted.

The deputy-managing director could however not tell the actual figure his management was going to table at the negotiation table but said it would surely not be less than $11 per tonne of bauxite they would haul from Awaso to the port of Takoradi.

When he was asked whether the Ghana Manganese Company (GMC) that is based at Nsuta and a major customer of the GRC is also part of the current negotiation team, he responded in the negative.

According to Quaye his management would not encounter any problem when they decide to negotiate for the upward adjustment of the current tariff they are paying.

He was hopeful that with the timely creation of the new ministry responsible for railways, and the concern that has been shown by the minister in charge, the seemingly unsolvable issue would soon be resolved.

The impasse between the GRC and GBC started some years back when the latter refused to allow an upward adjustment of the current $9.35 per tonne they are paying for the haulage of their minerals by the GRC to the Takoradi port for export. Several negotiations on the issue did not yield any results.

Interestingly, figures being paid by Alcan, the parent company of the GBC in other West African countries where it is operating is over and above the current figure it is paying to the GRC.

Just recently, GRC workers threatened to lay down their tools and also go on demonstration if their management failed to conclude negotiations for the upward adjustment of the tariff.

The workers' agitation was based on the fact that they could only get pay rise if the tariff was adjusted.

They have already filed a petition to the London based International Transport Federation to bring international pressure to bear on the overseas managers of the GBC to allow for the increase in the tariff.