Ports Shipping and Logistics (Commonwealth Union) – Parliament enacted the Ghana Shippers’ Authority Bill, 2024 into law on, Monday, July 29, 2024, following its successful third reading in the House.
This law, which updates the 50-year-old establishment law NRCD 254 (1974), aims to regulate the commercial activities of shippers. It specifically addresses the issue of unfair and excessive charges that burden traders using Ghana’s sea, air, and land ports for international trade.
The new legislation will introduce transparency in determining port fees and charges, ensuring accountability in the legal movement of international trade cargo across all of Ghana’s borders.
Additionally, it seeks to position Ghana as a preferred transit trade route for its landlocked neighbors, Burkina Faso, Mali, and Niger, thereby enhancing the sector’s revenue contribution to the national economy.
The new law empowers the Ghana Shippers’ Authority to better adapt to emerging trends and complexities in the shipping and logistics industry, protect the interests of shippers and shipping service providers, as well as enhancing its regulatory oversight of the entire industry.
As indicated by the Committee on Roads and Transportation’s report on the newly enacted Bill, a primary reason for its successful passage is the necessity of effective regulation in the shipping and logistics industry to ensure fair pricing for all stakeholders, particularly importers and exporters.
The report emphasizes that the Bill will empower the Ghana Shippers’ Authority to facilitate the imposition of fair fees at ports and borders, thereby encouraging local firms to participate in providing services within the sector.
In advocating for the Bill’s approval, Transport Minister Kwaku Ofori Asiamah expressed his satisfaction, noting that the Bill would strengthen the Ghana Shippers’ Authority’s ability to fulfill its statutory responsibilities effectively.
The Committee had claimed that they had observed that excessive charges by some service providers, particularly at sea and air ports, impede business growth and contribute to unnecessary price increases for goods and services. The new law aims to improve transparency and accountability, ultimately driving better revenue generation and collection for national socio-economic development.
The Ghana Shippers’ Authority (GSA), was set up 50 years ago by NRCD 254 (1974), regulates the commercial activities of shippers and shipping service providers involved in the shipment, storage, and delivery of international trade cargo by sea, air, and land. Over the past five decades, the GSA has enforced compliance with established standards and guidelines in Ghana’s commercial shipping sector and through Ghana to Burkina Faso, Niger, and Mali.
The GSA indicated that since 1974, it has led the development, oversight, and facilitation of transit trade via Ghana’s corridors. The newly passed law will enhance the regulation of transit trade, balancing the interests of shippers and service providers to improve efficiency and competitiveness in worldwide trade.
Commenting on this significant milestone, GSA’s Chief Executive Officer, Kwesi Baffour Sarpong, acknowledged that the amended law is a major step forward, but not a cure-all solution. He emphasized GSA’s readiness to work collaboratively to address any challenges, leveraging their strong relationships with all stakeholders. Sarpong assured stakeholders that the law’s enforcement will be fair and reflective of the shipping industry’s interests, marking a significant achievement for Ghana in its goal to become the preferred trade hub in the region.
Sarpong also expressed his gratitude to all industry stakeholders, including trade associations, shipping service providers, shipping lines, sister state agencies, the Attorney-General’s Department, and the Ministry of Transport, GSA’s supervising ministry, for their various roles, invaluable contributions, and tireless efforts in drafting the Bill. He thanked the President of the Republic, Nana Addo-Dankwa Akufo-Addo, along with the Cabinet and Parliament, for their dedication to a cause that promises significant benefits for all industry stakeholders and serves as a pathway to greater prosperity for Ghana.
The new law is expected to enhance socio-economic growth with multinational shipping service providers and small business likely to have a smoother transition with greater transparency.
