Ghana’s new maritime law promises improved efficiency
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- Category: Derecho marítimo
- Published on Monday, 12 August 2024 06:50
- Written by Administrator2
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Amendments to Ghana’s 50-year-old shipping law tackles excessive port fees and repositions the country as a preferred transit route for landlocked neighbours.
Key trade associations in Ghana are optimistic that the recently enacted Ghana Shippers’ Authority (GSA) law will streamline operations, eliminate bottlenecks and address the excessive fees charged by the country’s ports. The associations are agreed that the new law will empower regulators to safeguard the interests of shipping lines, maritime-service providers and the broader business community.
President of the Association of Ghana Industries (AGI) Dr Humphrey Ayim Darke, was upbeat about the new law following a private meeting with the GSA regarding its implementation, noting that shippers can now engage in fairer negotiations with agents. “The Association of Ghana Industries situated in the principal position believes this is a welcoming document to strengthen the business community. To the shipper, it gives us the capacity to engage with our agents in a very equitable manner. The role of the GSA is well-defined. They have become like a referee in creating the equity that is needed for doing business, especially at the points of entry,” he stated.
OBJECTIVES OF THE NEW LAW
The new legislation amends the existing 50-year-old legislation and aims to regulate the commercial activities of shippers. The law specifically targets unfair and excessive charges that have been a burden on traders using Ghana’s sea and airports, as well as land borders for international trade. The law further mandates that the GSA must now negotiate and approve all charges in the commercial shipping sector, including port fees, handling charges and other related costs that have previously been imposed by service providers. Additionally, the law seeks to position Ghana as a preferred transit trade channel for its landlocked neighbours, including Burkina Faso, Mali and Niger – a strategy that, if successful, will enhance the sector’s financial contribution to the economy.
REDUCING BUSINESS COSTS
Dr Joseph Obeng, president of the Ghana Union of Traders Association (GUTA), is optimistic that the new law’s implementation will positively impact the cost of doing business in Ghana. “We have been facing a lot of challenges with the shipping lines. That is why we have propagated that the GSA laws are revised to have proper control. The cost of doing business at the ports is too high. So if this law seeks to empower the GSA to approve or disapprove charges, then we can now have some respite to do our business to grow,” he remarked.
Deputy Minister of Trade and Industry, Kofi Ahenkorah Marfo, who represented the government at the meeting, assured stakeholders that further engagement would take place to ensure the law’s effective implementation.
ROLE OF THE GHANA SHIPPERS’ AUTHORITY
The GSA was established 50 years ago by NRCD 254 (1974) to regulate the commercial activities of shippers and shipping service providers in the shipment, storage and delivery of international trade cargo by sea, air and land. Over the past five decades, the GSA has driven compliance with established standards and guidelines in Ghana’s commercial shipping sector and through Ghana to Burkina Faso, Niger and Mali.
Since its inception, the GSA has spearheaded the development, monitoring and facilitation of transit trade through Ghana’s corridors. However, the GSA is confident that the newly passed law will enable more effective regulation of transit trade, balancing the interests of shippers and service providers to enhance efficiency and competitiveness in international trade.
By introducing transparency in the determination of these fees, the law should ensure accountability and fair pricing, ultimately reducing the cost of doing business at the ports and providing significant relief to traders and promote equitable business costs, enhancing the overall efficiency and competitiveness of Ghana’s international trade sector.