Business News of Thursday, 24 May 2018
Source: Eye on Port
The Ghana Shippers Authority has mounted intense campaign to sensitize stakeholders on the need to reduce the cost of doing business by reducing demurrages which is a major cost in trade at Ghana’s Ports.
This time, the Ghana Shippers Authority has organized a business seminar on demurrage for the Association of Ghana Industries (AGI). This is the second seminar on demurrage as the first was organized for the Ghana Union of Traders Association (GUTA).
Participating agencies for the seminar included, the Association of Ghana Industries (AGI), Ghana Ports and Harbours Authority, Ship Owners and Agents Association of Ghana (SOAAG), Customs Division of the Ghana Revenue Authority and the Ghana Institute of Freight Forwarders (GIFF).
The high cost of doing business remains one of the biggest disincentive to the growth of import and export business in Ghana, with the major cost item being demurrage.
The Chief Executive Officer of Ghana Shippers Authority, Benonita Bismarck explained that US$75 million was paid as demurrage, whereas GHc48 million was paid as Port Rent in 2017 alone.
“The high cost of doing business, remains one of the biggest disincentive to the growth of import and export business in Ghana. A major cost item is container demurrage,” the CEO of Ghana Shippers’ Authority said.
She encouraged members of the association to take keen interest in measures that will help them avoid payment of container demurrage and rent in the country.
“The government of His Excellency Nana Addo Dankwah Akuffo Addo, has stated its commitment to reducing the cost of doing business at our seaports through very bold initiatives and interventions in the cargo clearance process with the ultimate objective of bringing the needed relieves for shippers,” she stated.
The Chief Executive Officer of the Association of Ghana Industries, Seth Twum -Akwaboah indicated that demurrage had a negative effect on their businesses, hence, a better understanding of the clearance process was needed to address the challenge.
“Since it is something that is avoidable, we should avoid it. It is therefore very important to know the dynamics of the game, such that where we can avoid we avoid it so that we reduce our cost of doing business,” he opined.