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Special Report on Maritime and Logistics Sector
THEBUSINESS24ONLINE.NET
WEDNESDAY, 11TH NOVEMBER, 2020
Trade-offs will be crucial for a resilient maritime sector amid pandemic By Patrick Paintsil p_paintsil@hotmail.com
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he coronavirus pandemic has had a disruptive impact on the global supply chain, particularly on the port and shipping business and like all port nations, Ghana has had its fair share of the viral sting. On the global front, the shipping sector’s recovery has been tied to the ongoing reorganisation of economic production system which could push shipping companies to rationalise services on specific routes whilst reinforcing intra-regional maritime transport networks, in the longer term. In Ghana, strict adherence to protocols to curb the virus’ spread had a significant impact on the domestic shipping industry with unprecedented drops in both imports and exports for the first half of the year. Official first-quarter trade figures released by the Ghana Shippers Authority have revealed the severity of the impact of Covid-19 on the country’s maritime sector, with significant declines in all aspects of the business. The total volume of cargo— comprising both containerised and general cargo—handled by the country’s two seaports in the first quarter of 2020 decreased by a whopping 44.9 percent year-onyear, the data showed.
As shown by the industry performance for the half year, all service providers also incurred losses in their various fields. Shipping lines, as movers of Ghana’s maritime industry, are still counting their loss even as they continue to offer their seamless services due to the cushioning they give to the fiscal soundness and resilience of an import-laden economy. Shipping lines shoulder the nation’s international trade aspirations and with their never-ending voyages, they cart both imports—which keeps millions of traders in permanent employment, and exports—from which the nation gets its most treasured forex earnings. Despite feeling the brunt of the virus with blank sailings—where sailings have had to be cancelled— and, in most cases, sailing at half of their capacity, they have provided comfort and convenience to Ghanaian shippers on their loss. The transport logistics subsector and by extension all the transit trade facilitators were not spared either. The usual energy and bustle usually witnessed at the Tema Port Transit Terminal drowned as the pandemic pulled the brakes on the haulage business. Shocks to supply chains and reduced industrial activities that curtailed cargo traffic through the port mean there are fewer products to be moved by both
transit and domestic haulers, and this impacted harshly on businesses on that side of the shipping value chain. Marine labour were not spared either with Ghanaian seafarers stuck on vessels battling the stress of isolation while those on land continue to rue their lost incomes as the pandemic rages. The worldwide lockdowns and bans on travel have seen some seafarers stuck on vessels because they are not signing off and since crew change has been halted, those at home cannot go on board vessels. Thousands of seafarers remain trapped at sea, on containerships and other cargo vessels, by travel restrictions—which is a threat to supply chains, according to the International Chamber of Shipping (ICS). This is certainly not the time for specific or specialised favours for one particular player considering the severity of harm to the sector and its constituents. At a time that shipping lines were reeling under the shocks of the pandemic, shippers were making some big demands; specifically, they wanted charges such as demurrage to shipping lines, rent to terminal operators and warehouse rent and interest charges payable to Customs all waived. Much as shippers genuinely needed those waivers to reduce their cost and grow their profit
margins, other service providers— like the shipping lines will need such non-tariff revenue to enable them continue to serve the interest of the industry. Similarly, it will be extremely harsh for ports and terminal operators to adjust their charges and fees upwards but the odds will go against them should they fail to do so. In such a situation, industry players will be required to make some sacrifices for their survival and continual dependence on each other’s services. One thing that must be pointed out clearly is the fact that the pandemic has not spared any aspect of the shipping industry, and for that reason, it will be selfish and unacceptable for a section or group of players to demand favours or fail to accommodate their loss at the expense of other stakeholders. Generally, we can say that a resilient maritime sector has set sail to explore opportunities off the nation’s shores but it requires the needed policy directions and supportive action from industry stakeholders to ship home the needed economic dividend that will cushion the country’s growth agenda. But to reposition the sector for sustainable growth postpandemic, consensus and some level of tough sacrifices that must be made which all parties must tolerate and endure.
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Special Report on Maritime and Logistics Sector WEDNESDAY, 11TH NOVEMBER, 2020
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Special Report on Maritime and Logistics Sector
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Ghana Link Network Services Ltd leading the future of trade
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hana Link Network Services Ltd (GLNS), the Ghanaian-owned company was incorporated in 2001 and initially went into the business of destination inspection in 2003 and continued to expand on its product lines around cross border trade and continue to evolve. GLNS in partnership with the Customs Division of the Ghana Revenue Authority spearheaded the implementation of the Integrated Customs Management System (ICUMS) under the framework of the UNIPASS solution, an end-to-end trade facilitation, cargo inventory management, security protection and Revenue enhancement solution. ICUMS was born out of a strategic partnership between GLNS CUPIA to provide solutions to government. In order for a country to facilitate trade, maximize and ultimately optimize revenue collection as well as ensure safety and security at the borders, it needs a comprehensive and modern trade facilitation solution to manage these functions effectively and efficiently. On a global scale therefore, the Korea Customs Management System (UNIPASS) provides a holistic solution that ensures a paperless working environment, revenue assurance and safety and security. It is based on high achievements of the UNIPASS that ICUMS was born out of the system. The technology has been built to suit the need of Ghana; the government changed the name from UNI-PASS to the Integrated Customs Management System (ICUMS). The Korea UNI-PASS is internationally recognised for protection of intellectual property (IPR) and this is critical for Ghana, especially as the government through the Ministry of Trade leads a new age of industrialization by working hard to set up factories in all the districts in Ghana, known as the One District One Factory (1D1F). It is a modern and world-class technology acknowledged by international bodies such as the
World Trade Organization (WTO), the World Customs Organization (WCO), the World Bank, and World Economic Forum (WEF), which is used to facilitate trade, ensure supply chain security and increase revenue. ICUMS also offers importers and exporters an integrated system of filing all documents and helps businesses to send information regarding consignment simultaneously to each agency concerned for swift response in trade facilitation. Through the clearance management system in the ICUMS, all customs businesses are currently conducted in a paperless environment with real time cargo tracking through the cargo management system (CMS) whilst it is able to collect bills of lading from shipping lines and agents as well as airway bills airlines. Consignments can be tracked by authorized person with various tracking numbers and options. It is important to point out that with ICUMS provides all stakeholders the ability to access relevant information as well as able to check the status of the cargo at each stage of the cargo clearance chain. By way of information, the ICUMS was first deployed from the start of March 2020 at selected customs land frontiers. The next phase of deployment was at Takoradi Port from April 1, 2020. Kotoka International Airport (KIA) also went live from April at the close of the month of April, 2020. The next phase of deployment before going live nationwide was done in May 2020, for downstream petroleum operations. The final phase of the deployment at Tema Port and the rest of the country on June 1, 2020. The deployment of the ICUMS has covered all customs regimes and processes for sea, air, land import, export and transit-related transactions. In terms of capacity building, we have trained over 2,000 internal stakeholders, made up of customs officers, internal auditors and post-clearance audit staff, as well as some 5,500 external stakeholders which include freight forwarders.
The aim of the ICUMS is to continue to build strong partnership with the Ghana Revenue Authority (GRA) as well as other stakeholder to organise cross –border trade information and appropriately make it available to all users for the purpose of revenue collection enhancement, protection of National Security, as well as facilitation of genuine trade. In the past 3 full months since the nationwide deployment of ICUMS, revenue collection has increased significantly. In just three months of operation, the ICUMS according to the ICUMS implementation team chairman, who is also the Sector Commander of James Town Collection of Customs, AC Emmanuel Ohene, the system had generated some GH₵4.6 billion as part of the GH₵6.9 billion collected by the Customs Division of the Ghana Revenue Authority (GRA) between January and August 2020. ICUMS processed more than 193,000 bills of entry (BOEs) from March to August 2020. In
this, Pre-Manifest Declaration (PMD) constituted 86.71percent and 46.02percent of BOE exited. Tema Collection processed 47.07percent, KIA Collection 16.07percent, Aflao -9.67percent, and Bolga - 9.15percent. To conclude, ICUMS provides the required tools that makes cross border trading activities faster, simpler, more effective and efficient. ICUMS seeks to offer an ideal trade management solution that provide a distinct positive impact on the day-to-day operations of ports by proving the users with complete and timely information, important notifications as well as accurate analysis of data. Timely exchange of accurate and proper information with suppliers, customers and other stakeholders ensures benefits for all stakeholders and the country as a whole. In the simplest form, ICUMS solution organises cross border trade information and make the information promptly and easily available to all authorised users and stakeholders.
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WEDNESDAY, 11TH NOVEMBER, 2020
Ghana’s ports -- its best bet on AfCFTA By Patrick Paintsil p_paintsil@hotmail.com
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hana’s maritime sector is witnessing a sea change with aggressive investments in ports infrastructure and trade facilitation by both government and private financiers -repositioning the critical economic area for workable longterm commercial success. Tema Port, the nation’s busiest and biggest port, is among the best performing ports across the West and Central Africa subregion in all the key port efficiency performance indicators including vessel turnaround time and trade facilitation. There is also a continual effort by government and stakeholders to improve other areas of concern such as the cost and ease of doing business. In the new MPS Terminal 3, for instance, the country boasts one of the best performing terminals in West and Central Africa; a modern and fully automated port infrastructure that could drive the nation’s aspirations on all fronts of trade. Lying 230-kilometres off the capital is the Takoradi Port, which is gradually being shifted from an export-based port into an oil and gas services hub with enhanced capacity for large scale impex business. A multi-million-dollar investment from the indigenous firm, Ibistek Ghana Limited, will see enhanced commercial activity at the port enclave with consequential effect on the socioeconomic enhancement of the Sekondi-Takoradi metropolis. Admittedly, the ports
sector holds immeasurable opportunities for direct industry actors as well as businesses that rely on its output, but its most critical role is hugely aligned to the country’s participation in the Africa Continental Free Trade Area (AfCFTA). AfCFTA provides the opportunity for Africa to create the world’s largest free trade area with the potential to unite 1.3 billion people in a US$2.5 trillion economic bloc and usher in a new era of development. The main objectives of the AfCFTA are to create a continental market for goods and services, with free movement of people and capital, and pave the way for creating a Customs Union. It will also grow intraAfrican trade through better harmonisation and coordination of trade liberalisation across the continent. In terms of reliable infrastructure for trade facilitation, Ghana’s ports give fillip to the nation’s dreams of the single African market and how it could be leveraged to promote growth and wealth building. A number of governmentled initiatives including the One District, One Factory (1D1F), which primarily seeks to promote valueaddition amid diversification of the country’s export base clearly tells the nation’s readiness for the continent-wide market. Also, there are ongoing discussions on the development of new strategic industries such as garments and textiles, pharmaceuticals, automobile assembly and component manufacturing, petrochemical, iron and steel among others, with the hope of diversifying
the economy beyond traditional dependence on cocoa, gold and timber. It must be stated that the viability of all these programmes and the survival of the factories that are springing up from the 1D1F initiative will be hinged on our ability to move the byproducts onto ready markets off the shores of the country. At the heart of government’s aggressive industrial drive which is in sync with the AfCFTA dream is the goal to transform the nation’s manufacturing and agribusiness sectors to accelerate inclusive economic growth and job creation, whilst fostering competitiveness of local businesses, both small and large. And if the crux of the AfCFTA is the creation of linkages for trade in regionally produced goods to spark the much touted industrialisation to create jobs and wealth to grow the continent, then Ghana’s trump card for market, in terms of direct economic impact from its trade and investment transactions with its African neighbours, is its ready port infrastructure. A United Nations’ Economic Commission for Africa (UNECA) assessment of the expected impact of goodstrade liberalisation under the African Continental Free Trade Area (AfCFTA) treaty has shown significant economic gains for Ghana with strong potential to promote industrialisation. UNECA’s assessment tipped the country’s exports in 2040 to increase between 1.7 percent and 2 percent, equivalent to US$867m and US$1bn respectively, relative to the baseline situation. With AfCFTA, the continent’s
exports in 2040 will grow between 1.5 percent (US$40bn) and 2.2 percent (US$56bn), depending on the ambition of the liberalisation reform. Given that much of the trade will be seaborne, the relevance of Ghana’s ports to the single market has been boosted by the decision of some of the big liners calling at our ports to make Tema Port their transshipment hub. Hapag-Lloyd, for instance, has already announced the Tema Port as its transshipment hub in West Africa. By this arrangement, the Port of Tema will be the first port of call for their vessels stocking cargo that are destined for other ports within the sub-region before the cargo will be moved by smaller vessels to neighbouring ports by sea. This will provide further logistics and cross-trade opportunities within the subSaharan African markets in an efficient, safe and secure environment. Within the context of the AfCFTA, this development will lead to a reduction in cargo transport costs, increased trade volume for Ghana, with enhanced connectivity to the continental market. It is therefore not out of place to suggest that we have the ready port infrastructure that will provide the requisite linkages and to move locally-produced goods to markets across the continent. Backed with the provision of reliable support systems, notably rail and road connectivity, and collaboration from the private sector and civil society, the nation is sustainably armed for the single continental market.
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WEDNESDAY, 11TH NOVEMBER, 2020
Boankra Integrated Logistics Terminal: a gamechanger for Ghana’s transit business By Patrick Paintsil p_paintsil@hotmail.com
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resident Nana Addo Dankwa Akufo-Addo cut sod for the construction of the $330 million Boankra Integrated Logistics Terminal (BILT) project near Kumasi on 5th November, 2020. The project, which will be completed in 2023, is expected to increase the movement of goods and services in the country and also facilitate transit trade between Ghana and the landlocked countries of Burkina Faso, Mali and Niger. It is an ultra-modern integrated logistics terminal consisting of a container service yard (CSY), container freight station (CFS), reefer, warehouses, truck parking area, truckers’ facilities, fuel station, commercial complex, freight forwarders offices, and facilities for postal, telecommunication, utilities services, among others. After 18 years lull in getting a concessionaire for the BILT, the Ashanti Port Services Limited, a consortium of Afum Quality Limited of Ghana and DSS Associate of South Korea, finally won the bid to bring life to the project. The concession agreement will last for 30 years including a threeyear construction period for the development of various project facilities on a 413-acre land in Boankra.
The BILT, previously christened Boankra Inland Port, is purposed to be a dry port extension of the Tema Port, specifically to move transit cargo to the middle belt of the country with resultant reduction in the congestion situation at the nation’s busiest port. Aside reducing the cost of shipping to importers and exporters in the middle and northern part of the country and the Sahel subregion, the facility has also been tipped to serve as a catalyst for Ghana’s export trade, especially in the carting of traditional and nontraditional exports including cola nuts, shea butter, cocoa and cocoa products as well as wood and wood products. Within the context of the Africa Continental Free Trade Area (AfCFTA), the Boankra ‘dry port’ is another masterstroke that will facilitate Ghana’s participation in the single continental market for maximum gain.
“The AfCFTA would be buoyed by the construction of the BILT which will ensure an effective and efficient transport system, especially as Ghana is playing host to the Secretariat. The BILT, and other similar infrastructure projects, such as the development of the Keta Port, the Tema-Akosombo Railway Line, and the ongoing port expansion projects in Tema and Takoradi Ports, would make a positive contribution in ensuring that Ghana derives maximum benefits from the AfCFTA,” the president aptly stated in his remarks. With an anticipated surge in commercial activities, the dry port will open up the middle belt economy with the creation of jobs and wealth for the youth of the area. The project, the brainchild of the Ghana Shippers’ Authority, has outlasted the reign of two visionary leaders of the institution
namely Mr. Magnus Teye Addico and Dr. Kofi Mbiah, who made tremendous contributions towards its realisation. It is therefore gladdening that it is finally seeing the light of day under the leadership, led by Ms. Benonita Bismarck, whose dedication and exploits at the authority has won her the award for “Woman of Excellence—Public Sector” at this year’s Ghana Business Awards. To her, the facility will bring port services closer to the doorsteps of shippers in the northern half of Ghana as well as those in neighbouring geographically disadvantaged states. The BILT, she added was intended improve the operational efficiency of the Tema and Takoradi Ports as well as the provision of employment opportunities in the inland port supply chain. “These objectives are still largely tenable and it is my hope that the Boankra Integrated Logistics Terminal will deliver these and more for the benefit of our country,” Ms. Bismarck said at the sod-cutting ceremony. When completed, the BILT will be the pillar to the country’s transit trade ambitions as it will offer the right mix of convenience, affordability and proximity that is needed to win more business from our trading partners from the landlocked countries, making it a gamechanger for that aspect of the shipping business.
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Adam Imoru Ayarna
Robert Oram
The liner-shipper bromance: a forward-looking partnership
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s movers of Ghana’s maritime industry, they braved the odds of an anomalous pandemic to offer their seamless services to help maintain the fiscal soundness and resilience of an import-laden economy. Shipping lines shoulder the nation’s international trade aspirations, and with their never-ending voyages, they cart both imports—which keeps millions of traders in permanent employment, and exports—from which the nation gets its most treasured forex earnings. Despite feeling the brunt of the virus with blank sailings— where sailings have had to be cancelled—and, in most cases, sailing at half of their capacity, they have provided comfort and convenience to Ghanaian shippers to their loss. It is mostly evident that the industry romance between shipping lines and other maritime stakeholders is firmed up and with the same level of reciprocity, Ghana’s maritime business could be set for even greater heights. President of the Shipowners and Agents Association of Ghana (SOAAG) and Country Manager for Pacific International Lines (PIL) Robert Oram and his deputy Adam Imoru Ayarna share more insights on this forward-looking partnership… Q Shipping lines play a pivotal role in Ghana's international trade. Tell us about how your members have contributed to the nation’s development journey. A&R Considering the reliance on imports by Ghana the role of shipping lines in providing access to key markets is crucial as well as providing service to move the major export commodities from Ghana such as Cocoa and Cashew
which generate much needed foreign currency. Shipping is a much more cost-effective form of transport especially for high volume commodities. The importance of shipping to the country is clear when you consider the biggest and most important infrastructure project in the recent memory is the port development by MPS. You will be aware that global trade was heavily impacted during the early months of COVID 19, but member lines continued to call Ghana with some blank sailings and other sailings at less than half capacity, costs associated with these calls were not passed on to the Ghanaian economy but absorbed by the lines. Not forgetting the extended free days and hugely discounted demurrage given to importers during and immediately after the lockdown. All these were significant costs to the lines and we should not forget the protocols put in place by the lines with the aim to protect both our staff and customers whilst still ensuring that we served the market without any serious down time. Q To what extent has the expansions to Ghana's ports infrastructure enhanced efficiency of the shipping business for liners calling at our ports? A&R MPS terminal 3 has improved efficiency of vessel handling and through the increased draft has opened the opportunity to bring larger vessels to Tema. Longer term this may lead to costs savings through economies of scale. Q What is your position on the
Africa Continental Free Trade Area and how are shipping lines repositioning themselves to drive this novel agenda? A&R Most shipping lines are active in all the main African markets so will need little repositioning. In the end shipping lines will react by adjusting schedules where necessary in response to changes in customer activity. For example, if customers in the extreme East or West of Ghana opts to ship via Togo or Ivory Coast because the overall cost is cheaper this may lead to an adjustment in the market and therefore require changes by the lines to meet the new market. Q Some shipping lines have named Tema Port as their transshipment hub for their Africa operations. What are the direct benefits of such arrangements to Ghanaian shippers? A&R With lines utilising Tema as a transshipment hub it should provide greater connectivity to a wider range of markets both within Africa and beyond. Given the previous question concerning ACFTA better connectivity with other African countries in this new environment will be key to maximizing the benefits of such an agreement. A free trade agreement with the rest of Africa is rather meaningless unless you can get your goods to those markets. With Ghana's infrastructure its shippers may be poised to take advantage of the FTA. It should be noted that the current regulations affect transshipment negatively from a cost perspective compared to other similar ports, we expect the authorities to appreciate these facts which has have been raised severally to them, review
regulations and processes with its direct effect on cost. Naming or targeting Tema port as a hub and actualising it to its fullest are two different issues, but we are confident that once the transshipment regime/cost is reviewed the full potential of Tema becoming an important hub can be realised. Transshipment is driven by cost, ease and efficiency. Q In this time of Covid, what do you seek from government, in terms of reliefs and regulations, to maximise the productivity of shipping lines and the resulting impact on the Ghanaian economy? I do not believe lines are looking for financial support but stability in terms of local regulations etc. make it easier to plan and run a business as you have security in the environment for a number of years. The government seem to have done a good job especially when we see the impact of Covid on many countries outside of Africa but in terms of impact on the Ghanaian economy I would suggest this is yet to be seen fully. Import volumes seem to have been resilient but export volumes have been hit and the impact when Government has to begin paying for the measures put in place to combat Covid are unclear. Q What is the outlook for Ghana's seaborne trade; how brighter or gloomy is the situation? A&R Given that government is forecasting a return to strong growth next year and the majority of Ghana's economy is based on imports it suggests that seaborne trade to and from Ghana should continue to thrive.
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efficiency levels without compromising on security at Port. To facilitate and save valuable time for our customers a secure online portal open 24 hours a day, 7 days a week has been made available, which allows customers to make appointments through our “Truck Appointment System” (TAS) for their visit to the MPS Terminal 3 at their convenience. This has reduced cost and waiting times as compared to a manual process.
CSI Meridian Port Services Limited (MPS) is a Joint Venture between the Ghana Ports and Harbours Authority and Meridian Port Holdings Limited, with Bolloré Transport & Logistics and APM Terminals as the two main shareholders. MPS is the leading Container Terminal/Port in West Africa by virtue of its commitment to continuous improvement in the quality of service provided to stakeholders. This is enabled by the shareholders commitment to investments that are of long-term value to the business. MPS also has a high regard for Health, Safety, Environment and deploying the highest standards in safeguarding men and machines. Our foresight results in our prompt response to changes in the world container market. Our biggest response is the USD 1.5 Billion investment into the Port Expansion Project involving construction of a 3,550-metre long breakwater and an access channel harbouring 4 deep-water berths with a draft of 16m to accommodate larger vessels with sophisticated port handling equipment. This also includes office buildings and a workshop from which operations of the Port will be handled aimed at providing Ghana with a world class harbour infrastructure to last for the next 100 years.
TECHNOLOGY & INNOVATION Technology drives the company’s activities, the new MPS Terminal 3 is designed to run automated and semi-automated processes, which is achieved by the latest generation of technologies at the various stages of our terminal operations. Associated technology deployed include the latest Terminal Operating System NAVIS N-4 (TOS), Gate Operating System (GOS), Truck Appointment System (TAS), Biometric Access Control for drivers, License Plate recognition Systems (LPR) for recognizing vehicles numbers, Optical Character Recognition (OCR) for recognising container numbers, Weighbridges, X-Ray Scanners, Radio Frequency Identification (RFID) for recognizing trucks within the terminal. These high-end technology and equipment is synchronized with our fully integrated container terminal operations to eliminate congestion and maximise
Our projects come along with considerable investments into Corporate Social Initiatives (CSI). Two major CSI activities done involved easing the traffic congestion by upgrading the only 2 gateways on the roads linking Tema with the capital Accra (Tema end of the Accra Motorway and the Tema Community 3 Beach Junction with the Meridian Road) which is arguably the biggest social contribution done by a single corporate entity valued at 15 Million USD. Apart from these, we have also made significant contributions in the areas of health, education and environmental sustainability in our communities.
THE PORT, AfCFTA AND THE FUTURE For a successful take off of the AfCFTA, one of the requirements is superior transport systems including ports, rail and roads. Ports play a major role in the movement of goods in the world economy and trade activity, same will hold for Africa in this new era. MPS has thus shown the way with the MPS Terminal 3 which presents a cross trading platform strategically located on the West Africa Coast Line. This makes it ideal for transit and transhipment for the sub region. As a first step in the positive direction, shipping lines have started to deploy vessels with MPS as the hub. It is expected that this development will present Ghana with leverage in the continental trade pact. Many countries of Africa still remain largely disconnected however the MPS facility will allow for better connectivity via sea. Again, the facility has allocated a part of the terminal ready for rail construction to allow movement of cargo through rail to the hinterlands and land locked countries such as Burkina Faso, Fortunately the current government is working around the clock to restore rail connectivity. With this development, we believe that the future outlook for the maritime sector is bright as the MPS facility will be harnessed to benefit Ghana in pushing the AfCFTA agenda.
MPS TEMA PORT- WE CONNECT, YOU THRIVE
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MPS enhances border security and port gate capacity at Terminal 3
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eridian Port Services Limited (MPS) has procured and installed an additional container scanner at MPS Terminal 3 aiming to improve operational efficiency for the port, bringing to six the total number of drive-through container scanners installed in the terminal. The company’s Head of Construction, Mr. Matthieu Ferraro, handing over the facility to the Operations Team, said the acquisition was backed by MPS’s consistency in port development and innovative vision. “When you look at the growth of volumes, since the start of operations at MPS Terminal 3 there has been steady volume increase. In addition, I would say this is being proactive to have reserve capacity and a good response to the foreseen future,” said Mr. Ferraro.
He emphasised that the new scanner will serve as a back up to the other five scanners during routine maintenance without interrupting the flow of cargo and that the new facility was not going to result in redundant capacity. CEO of MPS Mr. Mohamed Samara highlighted the potentials of the Africa Continental Free Trade Agreement (AfCFTA) which takes off January 2021. “While we advocate to play a pivotal role as a nation, we must also look at the vital investments that will gear up our facilities to present a secure trading platform and enhance our role as a gateway to the economy,” said Mr. Samara. The HCVP Scanner is a latest of its kind drive-through portal for the inspection of trucks, containers and other vehicles providing the Customs officers with cargo manifest verification against the captured X-ray images,
reducing the need for manual inspections. It can also detect drugs, explosives and weapons. Its accelerators allow for steel penetration from 230mm (9in) to 300mm (11.8in) while providing a high throughput. It has a small carbon footprint with the ability to allow a throughput of 100 to 120 vehicles per hour. The CEO of MPS put emphasis on the sophisticated software of the Container Scanners that has been put to the exclusive use of the Customs Division of Ghana Revenue Authority and the respective government agencies for enhancing boarder security and safeguarding the state revenue while providing the highest operational standards to the port users. “This cutting-edge machinery is part of the MPS’s long standing vision of creating a digitally advanced port facility integrated
with the latest technology. It is also in line with the Vice President’s ease-of-doingbusiness measures that MPS has implemented to enhance Tema Port’s competitiveness and attract more cargo”, the CEO said. MPS is a joint venture between the Ghana Ports and Harbours Authority and Meridian Port Holdings Limited, with Bolloré Transport and Logistics and APM Terminals. Over the years, MPS continued to complement the country’s trade volume growth with investments in equipment and technology to boost Tema Port’s handling capacity. MPS is the region’s most efficient container terminal, it provides the shipping lines with the highest productivity levels (discharge/load) with real-time electronic data interchange using top-notch terminal operating systems.
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GEPA’s regional events on AfCFTA and NEDS slated for this month
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resident Nana Addo Dankwa Akufo-Addo cut sod for the construction of the $330 million Boankra Integrated Logistics Terminal (BILT) project near Kumasi on 5th November, 2020, signalling The project, which will be completed in 2023, is expected to increase the movement of goods and services in the country and also facilitate transit trade between Ghana and the landlocked countries of Burkina Faso, Mali and Niger. It is an ultra-modern integrated logistics terminal consisting of a container service yard (CSY), container freight station (CFS), reefer, warehouses, truck parking area, truckers’ facilities, fuel station, commercial complex, freight forwarders offices, and facilities for postal, telecommunication, utilities services, among others. After 18 years lull in getting a concessionaire for the BILT, the Ashanti Port Services Limited, a consortium of Afum Quality Limited of Ghana and DSS Associate of South Korea, finally won the bid to bring life to the project. The concession agreement will last for 30 years including a three-year construction period for the development of various project facilities on a 413-acre land in Boankra. The BILT, previously christened Boankra Inland Port, is purposed to be a dry port extension of the Tema Port, specifically to move transit cargo to the middle belt of the country with resultant reduction in the congestion situation at the nation’s busiest port. Aside reducing the cost of shipping to importers and exporters in the middle and
northern part of the country and the Sahel sub-region, the facility has also been tipped to serve as a catalyst for Ghana’s export trade, especially in the carting of traditional and non-traditional exports including cola nuts, shea butter, cocoa and cocoa products as well as wood and wood products. Within the context of the Africa Continental Free Trade Area (AfCFTA), the Boankra ‘dry port’ is another masterstroke that will facilitate Ghana’s participation in the single continental market for maximum gain. “The AfCFTA would be buoyed by the construction of the BILT which will ensure an effective and efficient transport system, especially as Ghana is playing host to the Secretariat. The BILT, and other similar infrastructure projects, such as the development of the Keta Port, the Tema-Akosombo Railway Line, and the ongoing port expansion projects in Tema and Takoradi Ports, would make a
positive contribution in ensuring that Ghana derives maximum benefits from the AfCFTA,” the president aptly stated in his remarks. With an anticipated surge in commercial activities, the dry port will open up the middle belt economy with the creation of jobs and wealth for the youth of the area. The project, the brainchild of the Ghana Shippers’ Authority, has outlasted the reign of two visionary leaders of the institution namely Mr. Magnus Teye Addico and Dr. Kofi Mbiah, who made tremendous contributions towards its realisation. It is therefore gladdening that it is finally seeing the light of day under the leadership, led by Ms. Benonita Bismarck, whose dedication and exploits at the authority has won her the award for “Woman of Excellence— Public Sector” at this year’s Ghana Business Awards. To her, the facility will bring port services closer to
the doorsteps of shippers in the northern half of Ghana as well as those in neighbouring geographically disadvantaged states. The BILT, she added was intended improve the operational efficiency of the Tema and Takoradi Ports as well as the provision of employment opportunities in the inland port supply chain. “These objectives are still largely tenable and it is my hope that the Boankra Integrated Logistics Terminal will deliver these and more for the benefit of our country,” Ms. Bismarck said at the sod-cutting ceremony. When completed, the BILT will be the pillar to the country’s transit trade ambitions as it will offer the right mix of convenience, affordability and proximity that is needed to win more business from our trading partners from the landlocked countries, making it a gamechanger for that aspect of the shipping business.
GSA wins Trade Facilitation Company of the Year
T
he Ghana Shippers’ Authority (GSA) has been adjudged the Trade Facilitation Company of the Year 2020 at the 3rd edition of the Ghana Business Awards held recently in Accra.
The award was in recognition of the role of the GSA in protecting and promoting the interest of shippers in Ghana through its services and activities via the engagement of shippers, shipping service providers and
other state agencies whose functions have a bearing on trade facilitation. Some of the GSA’s trade facilitation activities include the promotion of Ghana’s transit trade corridor by removing
non-tariff barriers, education and sensitisation campaigns on promotion of local marine insurance, ‘how to avoid demurrage’, exporters’ forum to build capacity of exporters, resolution of recurrent shipment challenges, negotiation of port charges, among others. At the same event, the Chief Executive Officer (CEO) of the authority, Ms. Benonita Bismarck was adjudged winner of the 2020 Woman of Excellence (Public Sector) Award. The award recognised her sterling contributions in leading the GSA to making major interventions in addressing concerns of shippers in the country.
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Special Report on Maritime and Logistics Sector WEDNESDAY, 11TH NOVEMBER, 2020