Business News of Monday, 8 February 2021

Source: thebusiness24online.net

GPHA, MPS deal must happen - Director-General urges

The Tema port The Tema port

The Meridian Port Services (MPS), a private port operator, was given a monopoly over the management of all containerised cargo at the new MPS Terminal – a situation the Ghana Ports and Harbours Authority (GPHA) was not too much enthused about.

According to the GPHA, MPS’ monopoly which came about as a result of the concessionaire agreement that led to the construction of the new terminal threatens the operations and workforce of the nation’s port operator.

GPHA has since been persuading MPS to consider allowing the nation’s port operator to handle at least 20 percent of containerised cargo at its new terminal as a way of keeping GPHA in business.

At a crunch meeting in Dubai in November 2019, MPS was said to have agreed to the demand of GPHA, but the latter is yet to access and handle that percentage of containerised cargo.

The Director-General of GPHA, Michael Luguje, knowing the delicate nature of the call on MPS told a staff gathering recently that they are hoping MPS will cede fully to their demands by the second quarter.

According to him, while pursuing the agreement to allow GPHA handle 20 percent of containerised cargo, the authority was able to handle between 10 to 12 percent of cargo in the latter end of last year.

Like Mr. Luguje said, this paper is not in doubt regarding the social benefits of the hybrid system of operations that the GPHA is currently operating, as opposed to the sole landlord port authority system of operations.

The advantages of the hybrid system, its impact on the liquidity system and the GPHA’s ability to provide the social requirement of government, which is to create jobs goes to justify the need to review the MPS Terminal 3 contract.

Government may have had valid reasons regarding the appropriateness of the MPS deal, but time has certainly shown that a rethink is plausible and must be explored.