{"id":269263,"date":"2024-12-22T07:46:04","date_gmt":"2024-12-22T07:46:04","guid":{"rendered":"https:\/\/www.ghanamma.com\/2024\/12\/22\/ghana-ports-modernise-%e2%80%a3-worldcargo-news\/"},"modified":"2024-12-22T07:46:04","modified_gmt":"2024-12-22T07:46:04","slug":"ghana-ports-modernise-%e2%80%a3-worldcargo-news","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2024\/12\/22\/ghana-ports-modernise-%e2%80%a3-worldcargo-news\/","title":{"rendered":"Ghana ports modernise \u2023 WorldCargo News"},"content":{"rendered":"

<\/p>\n

\n
\n\"Ghana
Meridian Port Services is expanding the Port of Tema to have a capacity of 3.7m TEU \u00a9 APM Terminals<\/span><\/figcaption><\/figure>\n

Ghana has embarked on two major port expansions. The first is Phase Two of the US$ 1.5bn Tema Port Expansion Project, expected to be completed by September 2025. Overseen by Meridian Port Services (MPS), this expansion will enlarge the terminal area by 27 hectares, add new STS cranes, and increase annual throughput capacity from 2.5m to 3.7m TEU. Meridian Port Services \u2013 a joint venture between APM Terminals, Africa Global Logistics (AGL), and the Ghana Ports and Harbours Authority (GPHA) \u2013 aims to position Tema as a transhipment hub, serving landlocked countries like Burkina Faso, Niger, and Mali.<\/p>\n

The second project is the US$ 98m Oil and Gas Services Terminal at Takoradi Port, funded by GPHA. Designed to make Takoradi a regional centre for oil and gas services, the terminal will offer a 21-hectare area with a 550-metre quay and a 10-metre draft.<\/p>\n

In an interview with WorldCargo News<\/em>, Prime Meridian Docks CEO and maritime lawyer Stanley Ahorlu discussed Ghana\u2019s efforts in port modernisation within West Africa\u2019s changing maritime landscape. Ahorlu described how investment and strategic planning are improving Ghana\u2019s logistics network through a series of projects and initiatives.<\/p>\n

Ahorlu also highlighted comparable projects across West Africa, such as Senegal\u2019s Ndayane Port, developed with DP World, and Nigeria\u2019s Lekki Deep Sea Port, which opened in February 2023. These projects reflect a trend towards high-capacity, international-standard terminals and strategic investments to attract major global shipping companies.<\/p>\n

Digitalisation, automation, and decarbonisation<\/h2>\n

Looking ahead, Ahorlu emphasised the importance of digitalisation and automation in maintaining port competitiveness. Ghana has already implemented Single Window Systems at Tema Port, aiming to streamline customs processes, reduce congestion, and improve throughput. In the future, automation will play a key role in tackling urban congestion around ports, enhancing efficiency.<\/p>\n

Decarbonisation, although not yet a primary focus, is gaining attention in West African ports. Ahorlu pointed to the Port of Banjul\u2019s Climate Risk Assessment, conducted with support from the Global Centre on Adaptation and the African Development Bank (AfDB), as an example. Such initiatives are expected to increase as environmental considerations become necessary to secure international funding.<\/p>\n

Challenges in ports and logistics<\/h2>\n

While Ghana has attracted significant investment in its ports, Ahorlu acknowledged several challenges. Major capital expenditure, typically funded in foreign currency, can strain local budgets. To bridge these funding gaps, Ghana\u2019s port authorities have partnered with multinational corporations, sometimes ceding operational control in exchange for investment. Although these partnerships help extend logistics networks across Africa, they may increase government dependency on port revenues. Ghana, for instance, relies on its ports for over half of its tax revenue.<\/p>\n

Additionally, port development often proceeds in isolation without improvements in surrounding infrastructure such as roads and railways. This lack of integration limits the economic benefits of increased throughput and contributes to high freight costs, with limited impact on intra-African trade.<\/p>\n

Improved connectivity and cost efficiency<\/h2>\n

To boost regional connectivity and reduce costs, Ahorlu outlined practical steps African ports could adopt. He urged ports to shift focus from merely generating government revenue to acting as engines of economic growth. He also recommended that port expansion plans be integrated into broader maritime strategies that connect ports with local production centres and establish industrial or free trade zones to support export industries.<\/p>\n

To enhance efficiency, Ahorlu advocates accelerating digitalisation and automation, underpinned by a continent-wide Single Window System that connects national platforms. This would streamline trade processes, alleviate congestion, and reduce operational costs across Africa.<\/p>\n

The African Continental Maritime Corridor<\/h2>\n

Ahorlu is a strong proponent of the African Continental Maritime Corridor, a proposed initiative to create a unified maritime transport market across Africa. Aligned with the African Continental Free Trade Area (AfCFTA), the corridor would foster coastal shipping and intra-African trade. Currently, limited domestic African ownership of the global shipping fleet and foreign control over profitable ports burden the continent with high freight costs and low economic returns.<\/p>\n

For this corridor to succeed, regulatory alignment is essential, along with a sustainable network of waterways and vessels connecting ports to production hubs. Ahorlu suggested developing a maritime transport protocol under AfCFTA, with African-owned vessels registered through an African Classification Society and insured locally. A standardised tax regime, priority berthing rights, and inspection standards would create a stable market for maritime services, attracting private investment.<\/p>\n

Ahorlu believes the corridor could offer competitively priced transport, create jobs, and strengthen cross-border trade, reducing import dependency and spurring economic growth across Africa.<\/p>\n

Competition versus collaboration<\/h2>\n

As Ghana strives to establish itself as a transhipment hub, Ahorlu recognises the intense competition from neighbouring ports in Senegal, Ivory Coast, Togo, and Nigeria. Each country seeks to serve landlocked regions in West Africa, leading to a concentration of infrastructure along the Lagos-Abidjan corridor.<\/p>\n

Ahorlu expressed concern that this rivalry prioritises national interests over economic efficiency, resulting in underutilised port facilities with limited connectivity and cross-border trade. He suggested that more collaborative planning could optimise resources and promote regional economic integration, benefitting the entire corridor.<\/p>\n

To attract private investment, Ahorlu stressed the importance of balancing risk and reward. While ports in Africa have drawn interest, investments remain lacking in other maritime areas, such as short-sea shipping, vessel ownership, and ship management. He believes the sector can attract new investors with appropriate incentives, strong regulatory frameworks, and long-term financing from development institutions like the African Development Bank.<\/p>\n

Sustainability and environmental initiatives<\/h2>\n

Sustainability is central to Ahorlu\u2019s vision for Ghana\u2019s port sector. Prime Meridian Docks is advancing this commitment through Shiprite, a US$ 137m ship repair facility at Takoradi Port, set to launch in 2025. This project aims to retrofit older engines, preventing a claimed 179,536 tonnes of carbon emissions annually. Funded by the African Export\u2013Import Bank, AfDB, Trade & Development Bank (TDB), and Ghana\u2019s Pension Fund, Shiprite exemplifies how collaboration can promote environmental goals alongside economic growth.<\/p>\n

Ahorlu envisions further green initiatives across African ports, including solar energy, electric vehicles, and alternative fuel bunkering stations, fostering a sustainable maritime sector in Africa.<\/p>\n

*This story first appeared in the November print issue of WorldCargo News<\/i><\/p>\n

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    Meridian Port Services is expanding the Port of Tema to have a capacity of 3.7m TEU \u00a9 APM Terminals Ghana has embarked on two major port expansions. The first is Phase Two of the US$ 1.5bn Tema Port Expansion Project, expected to be completed by September 2025. 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