Ghana Shippers’ Authority takes steps to reduce cost of cargo clearance

Ghana Shippers’ Authority takes steps to reduce cost of cargo clearance

In a proactive move aimed at addressing the recurring issue of high business costs at the port, the Ghana Shippers’ Authority (GSA) has initiated processes to develop unique value propositions tailored to various categories of shippers.

This strategic initiative is designed to facilitate access to needed services provided by the GSA while simultaneously reducing port and cargo destination costs, a critical concern for the shipping industry.

Mr. Kwesi Baffour Sarpong, the Chief Executive Officer of GSA, announced this during a Breakfast Meeting with Shippers held on Tuesday, 14th May 2024, in Takoradi, Western Region.

The Breakfast Meeting, convened by Mr. Sarpong, signifies a strategic effort to fortify the GSA’s relationship with shippers, with a specific emphasis on enhancing value throughout the cargo shipment and delivery process.

The inaugural session of this gathering in Takoradi included intimate one-on-one sessions between the CEO and shippers, particularly those whose annual import/export volumes exceed $20 million and are situated within the Western Zone.

This direct engagement underscores the importance of understanding the specific needs and challenges of high-volume shippers, who play a significant role in the region’s economy.

Mr. Sarpong underscored the significant economic impact of shippers, hence the prioritization of their needs.

He mentioned that going forward, GSA is considering assigning Relationship Managers to some categories of shippers as part of the revisioning and realigning agenda to create value for shippers at Ghana’s various ports in real-time.

“At the heart of this shift in approach is building a strong relationship with the shippers to better understand the unique challenges faced by various categories of shippers and develop solutions that offer them the best value for their business,” he explained.

He outlined the GSA’s overarching objective: “to drastically reduce port costs outside of statutory costs including cost items like clearance expenses, container deposits, demurrage fees, and other avoidable charges, while also providing institutional support through permit acquisition/exemptions and proactive alerts.”

These initiatives are aimed at making the shipping process more cost-effective and efficient, thereby enhancing the competitiveness of Ghanaian shippers in the global market.

Mrs. Agnes Asamoah-Duku, Head of the GSA’s Western Zonal Office, affirmed the organization’s commitment to open dialogue with shippers to swiftly address any challenges they encounter.

“The main purpose of this maiden meeting, which is dubbed ‘Time with the CEO,’ is to strengthen the Authority’s relationship with you shippers gathered here this morning and afford our CEO the chance to hear from you directly so he can lead the Authority in making meaningful interventions on your behalf,” she stated.

The shippers expressed gratitude to GSA for prioritizing their needs and pledged to be active participants of the various zonal Shipper Committees to contribute their quota to the improvement of the sector.

Their active involvement is seen as crucial in identifying and addressing sector-specific issues, thereby fostering a collaborative approach to solving the challenges faced by the shipping community.

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To curb the high cost of cargo clearance and improve the overall efficiency of the port operations, the GSA could consider the following five measures:

1. Streamlining Customs Procedures: Simplifying and automating customs procedures can significantly reduce the time and cost associated with cargo clearance.

Implementing advanced technology solutions for tracking and documentation can help minimize delays and reduce bureaucratic bottlenecks.

2. Enhancing Port Infrastructure: Investing in port infrastructure to expand capacity and improve logistics can help reduce congestion and waiting times.

This includes upgrading equipment, expanding storage facilities, and enhancing connectivity to major trade routes.

3. Negotiating Lower Fees with Service Providers: The GSA can negotiate with shipping lines, terminal operators, and other service providers to reduce fees for services such as container handling, storage, and demurrage.

Bulk negotiations could lead to cost savings that are passed on to shippers.

4. Implementing a Single Window System: Introducing a single window system for all port-related transactions can streamline the process, reduce redundancy, and improve transparency.

This system allows for the electronic submission of all required documents, facilitating faster processing and clearance.

5. Providing Training and Support for Shippers: Offering training programs for shippers on best practices in logistics and supply chain management can help them optimize their operations and reduce costs.

Additionally, providing ongoing support and consultancy services can assist shippers in navigating regulatory requirements and taking advantage of cost-saving opportunities.

By implementing these measures, the Ghana Shippers’ Authority can effectively reduce the cost of cargo clearance, enhance the efficiency of port operations, and support the growth and competitiveness of Ghana’s shipping industry.

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