The Ghana Ports and Harbours Authority (GPHA) has rejected port congestion as the sole cause for recent increases in cement prices. GPHA states that cement manufacturers must consider a wider range of factors affecting their costs, not just port delays.
The Authority highlighted that vessel planning, cargo evacuation, and trucking capacity significantly influence the cost of moving clinker and cement. These elements, along with discharge arrangements and other commercial considerations, contribute to overall logistics expenses. GPHA's position directly counters claims made by the Chamber of Cement Manufacturers, Ghana (COCMAG), which had linked price hikes primarily to congestion at Tema Port.
This discussion comes at a critical time for Ghana's economy, where construction costs directly impact housing and infrastructure development. Cement prices have seen upward trends, adding pressure to an already challenging economic environment marked by inflation and currency depreciation. Reliable and efficient supply chains are crucial for managing these costs and ensuring economic stability. The GPHA's intervention underscores the complex interplay of logistics, infrastructure, and market dynamics in Ghana's industrial sector.
A GPHA spokesperson stated, “The operation of the port involves competing demands from different categories of importers. It cannot be structured around cement cargo alone.” The Authority further explained that food products like rice and wheat require separation from cement and clinker for safety. This requirement affects berth allocation, with Berths 3, 13, and 14 designated as common-user berths for cement and clinker.
The implications of these factors extend beyond just cement prices, affecting the broader construction industry and consumer spending. Continued inefficiencies in the supply chain could lead to higher project costs and slower development. Decision-makers will need to address these systemic issues to ensure a more predictable and affordable market for essential building materials. Markets will closely watch how manufacturers and port authorities collaborate to streamline operations and reduce costs.
GPHA also pointed to recent dredging works as a significant improvement for the cement industry. Berth 13 now boasts a depth of up to 14 metres, while Berth 14 has a depth of up to 12 metres. These increased depths allow manufacturers to use larger vessels, potentially benefiting from lower unit logistics costs through economies of scale. Manufacturers were informed about the dredging exercise beforehand, expecting them to plan vessel arrivals accordingly.
Furthermore, GPHA suggested the Port of Takoradi as an alternative for handling cement and clinker cargo. Manufacturers should assess the most efficient combination of ports, vessel sizes, and inland transport when organizing their operations. Trucking capacity remains another critical factor contributing to delays. A vessel carrying 40,000 tonnes of clinker can remain at port for seven to 10 days if insufficient trucks are available for cargo evacuation. Such delays keep berths occupied, reducing space for other vessels.
The Authority also announced plans to modernize cement and clinker handling at Tema Port. New handling systems are expected to reduce reliance on traditional grabs and hoppers, improving discharge rates and shortening vessel turnaround times. GPHA encourages cement companies to invest in this new technology as it becomes available. Improving efficiency at the port requires cooperation among all parties, including importers, transport operators, and terminal users. GPHA reaffirmed its commitment to improving cargo evacuation and berth utilization at Ghana’s ports.