Tema Port Faces Trade Diversion Threat Amid Rising Costs

    Importers warn 74% of containers undergo intrusive examination, driving up expenses and delays.

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    Ghana's Importers and Exporters Association (IEAG) has called for urgent reforms at Tema Port. The Association warns that persistent congestion and rising operational costs threaten to divert trade to competing ports in the sub-region.

    The IEAG highlighted that approximately 74% of containers undergoing scanning are routed for further intrusive examination. This high rate of physical checks contributes significantly to delays and increased costs for businesses. The situation demands immediate, high-level government intervention to protect Ghana's trade and economic competitiveness.

    This challenge comes as Ghana strives to position itself as a regional trade hub. Efficient port operations are crucial for attracting foreign investment and boosting export revenues. Delays and increased costs at Tema Port could undermine broader economic growth initiatives and impact the nation's balance of trade. The port serves as Ghana's primary gateway for international trade, making its efficiency vital for the national economy.

    Samson Asaki Awingboit, Executive Secretary of the IEAG, stated that the port faces a combination of challenges. These include congestion, customs examinations, regulatory charges, and poor coordination among state agencies. Mr. Awingboit emphasized that a risk-management system routinely channeling a high proportion of cargo into intrusive examination risks becoming a congestion-generating mechanism. He warned that this undermines the very trade facilitation system it is intended to support.

    The current issues could lead to significant financial implications for businesses and the national economy. Importers may face higher demurrage and storage costs, which are charges for delayed cargo. This directly impacts consumer prices and business profitability. Furthermore, a loss of trade volume to neighbouring ports would reduce government revenue from duties and taxes. This would also diminish Ghana's standing as a preferred destination for international commerce.

    The IEAG's engagements with various stakeholders, including freight forwarders and customs agents, confirm the widespread nature of these problems. The Association noted that multiple inspections by different agencies, such as the Food and Drugs Authority and Ghana Standards Authority, cause additional truck movements and delays. This lack of coordinated inspections further exacerbates the port's inefficiencies. The cumulative charges imposed by various agencies also increase the cost of doing business.

    Mr. Awingboit warned that the situation could worsen during the December peak trading period if urgent measures are not taken. He revealed that some importers are already considering routing cargo through the Port of Abidjan in Côte d’Ivoire. This is due to the delays and uncertainty experienced at Ghana’s ports. Losing business to regional competitors could be a long-term problem, as winning back established alternative supply chains is extremely difficult.

    The IEAG has proposed several reforms to improve efficiency and performance at Tema Port. These include setting clear timelines for examinations, valuation disputes, and regulatory inspections. They also advocate for better truck processing and cargo release procedures. Ghana needs a port system that not only generates revenue but also facilitates trade efficiently, predictably, and competitively. Addressing these issues is critical for maintaining Ghana's economic stability and growth trajectory.

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