4.9 C
London
Tuesday, November 18, 2025

Customs Brokers Warn Ghana Risks Losing Transit Trade

Ghana Ports and Harbours Authority (GPHA)
Ghana Ports and Harbours Authority (GPHA)

Ghana faces losing substantial transit traffic to neighboring Togo unless urgent improvements address infrastructure deficiencies and operational challenges at transit terminals, customs brokers warned during a stakeholder forum on Tuesday. The Customs Brokers Association of Ghana (CUGAB) highlighted persistent problems undermining the country’s competitiveness as freight forwarders struggle with inadequate facilities threatening to drive business toward the Port of Lomé, which has emerged as West Africa’s most efficient container hub.

Nana Fredua Ofori Atta, CUGAB President, told participants at the Ghana Ports and Harbours Authority (GPHA) hosted media forum that transit terminals lack basic amenities including reception areas and proper facilities for night operations. Workers have nowhere to shelter during rainfall and no rest areas when exhausted during extended shifts, creating conditions that hamper effective performance despite the rollout of 24 hour operations.

The warning carries significant weight as Togo’s Port of Lomé has overtaken Ghana’s Tema Port in regional container traffic rankings. Lomé Container Terminal (LCT) completed dredging work in September 2025 enabling the facility to accommodate fully loaded container ships of up to 24,000 twenty foot equivalent units (TEUs), positioning it as the only natural deep sea port in West Africa with depths reaching 18.6 meters capable of handling ultra large container vessels.

Comparative analysis shows Lomé consistently offers lower costs across multiple categories. Marine charges at Lomé provide nearly 15 percent cost advantages over Tema, while container handling charges run 44 to 58 percent lower depending on container size and type. Transport costs along the Lomé to Ouagadougou corridor cover 990 kilometers compared to Tema’s longer routes to Burkina Faso, giving Togo additional geographic and pricing advantages for transit traffic serving landlocked Sahel nations.

Ofori Atta emphasized that delays addressing infrastructure deficiencies could cause irreversible damage to Ghana’s transit business. Once importers shift operations to alternative ports offering better facilities and lower costs, regaining that business becomes extraordinarily difficult as new relationships and operational patterns become established. The competitive threat intensifies as Togo’s recent alignment with the Alliance of Sahel States, comprising Burkina Faso, Mali, and Niger, threatens to formalize exclusive transit arrangements diverting cargo away from Ghanaian ports.

The CUGAB President welcomed recent government budget allocations for port activities, acknowledging that while funds remain insufficient for comprehensive improvements, strategic application could significantly enhance operations. He noted that the 24 hour service policy reduces dwell time and demurrage costs by allowing continuous work instead of deferring activities to subsequent days, though some shipping lines and government agencies have yet to fully adopt the system.

Transit trade represents critical revenue for Ghana’s economy. The country recorded transit volumes increasing from 308,000 metric tons during January through March 2023 to 444,000 metric tons during the same period in 2024, representing 136,000 metric tons growth according to Customs Division data. Ghana handles over 85 percent of national trade through its ports, with Tema Port alone processing more than 1,500 vessel calls annually and total cargo throughput consistently exceeding 25 million metric tons per year.

Historical challenges have plagued Ghana’s port efficiency metrics. Container dwell time at Tema and Takoradi averaged six to twelve days, substantially exceeding global benchmarks of three to four days. Every additional delay day generates higher storage costs, increased demurrage charges, and reduced capital efficiency particularly damaging for businesses handling perishable goods. The African Continental Free Trade Area (AfCFTA) implementation positions Ghana as a potential major transit hub, making operational efficiency improvements crucial for capturing expanding regional commerce.

Burkina Faso historically represented over half of transit cargo volume through Tema Port as recently as 2010, while mining industries in Burkina Faso and Niger have relied on both Ghanaian and Togolese corridors for export logistics. The competition for this traffic has intensified as Lomé Port handled approximately 890,000 TEUs annually through its container terminal, representing roughly 75 percent of containers transiting through the Port Autonome de Lomé.

Tema Port’s Phase 2 expansion, developed by Meridian Port Services (MPS), reached 98 percent completion with targeted commissioning in September 2025. The 1.3 billion dollar project adds 270,000 square meters of paved yard space, expanding the terminal footprint from 100 to 127 hectares and boosting container capacity to approximately 3.7 million TEUs. The expansion introduces modern infrastructure including gantry cranes, drainage systems, and cable conduits designed to increase operational efficiency and position Tema as West Africa’s largest port by capacity.

Despite infrastructure investments, operational challenges persist. Data Envelopment Analysis studying West African port performance from 2010 to 2022 showed Tema Port maintained optimal efficiency scores of 1.000 during 2011 and 2013 but experienced declining efficiency between 2016 and 2019, fluctuating between 0.661 and 0.658 before recovering to reach optimal scores again in 2021. By 2022, efficiency slightly declined to 0.921, reflecting ongoing operational inconsistencies affecting competitiveness.

Security infrastructure improvements accompanied operational expansions. Maintaining round the clock surveillance requires substantial investments in closed circuit television systems, biometric access controls for port workers, and artificial intelligence driven monitoring tools deployed across terminal facilities. Energy reliability remains essential for sustained 24 hour operations, with the Ghana Grid Company (GRIDCo) requiring nearly 90 million dollars in January 2025 to procure liquid fuel for operating thermal plants in Tema to meet growing electricity demand critical for uninterrupted port operations.

Port access road conditions present additional bottlenecks. Infrastructure investments totaling approximately 3 billion dollars across roads, housing, and transit systems commenced implementation running from mid 2025 through 2026, including port access roads, logistics parks, and flood prevention infrastructure targeting traffic decongestion. These improvements aim to address connectivity challenges that increase transport costs and reduce competitiveness against regional rivals.

The Integrated Customs Management System (ICUMS), introduced in June 2020 as a single window electronic customs platform, replaced cumbersome manual processes reducing red tape and costs for stakeholders while improving government revenue through greater transparency and cargo tracking capabilities. Initial results show consignments clearing within hours when all documentation meets requirements, though systematic implementation across all agencies remains ongoing.

Ghana’s competitive position faces threats from multiple regional rivals investing heavily in maritime infrastructure. Côte d’Ivoire’s massive Port of Abidjan expansion includes new container terminals, automation, and modern logistics corridors making it a preferred maritime gateway for Francophone West Africa. Nigeria’s Lekki Port and rehabilitated Apapa facilities compete for regional traffic, while Senegal develops the Ndayane Deepwater Port expected to reach completion in 2027 with deepwater channels, container terminals, and comprehensive logistics infrastructure.

Ofori Atta called for urgent collaborative action ensuring transit terminals become efficient, safe, and supportive of Ghana’s growing trade ambitions. He urged authorities to prioritize improvements in infrastructure, security, and port roads while emphasizing that Ghana must accelerate modernization efforts to prevent losing market share to competitors aggressively capturing transit traffic from landlocked Sahel nations representing substantial long term revenue opportunities.

The government views port modernization as integral to macroeconomic stability and industrial competitiveness. Efficient trade facilitation attracts foreign investment, reduces production costs for manufacturers dependent on imported inputs, and enhances export capabilities for Ghanaian producers accessing international markets. Revenue improvements provide fiscal resources for infrastructure development and social programs, making port efficiency central to national development objectives.

Policy analysts emphasize that maintaining regional transit traffic dominance requires comprehensive reforms addressing both hard infrastructure like terminal facilities and soft infrastructure including customs procedures, regulatory frameworks, and stakeholder coordination. Ghana’s Logistics Performance Index ranking of 95th globally in 2023 showed the country ahead of several regional competitors, but sustaining that advantage demands continuous improvement matching or exceeding the pace of infrastructure development occurring across West African ports.

The Trans Volta Logistics Project, launched in 2020 with estimated costs of 200 million dollars and expected full operation by 2025, aims to expedite cargo movement from Tema Port to Ouagadougou via Lake Volta. Similar inland port developments including the Boankra Inland Port project seek to improve logistics operations between Ghana’s maritime ports and neighboring countries while boosting industrialization of northern Ghana and improving regional economic integration essential for capturing AfCFTA trade expansion.

Strategic bilateral agreements with landlocked nations including Burkina Faso, Mali, and Niger could secure commitments to using Tema and Takoradi as primary import and export gateways rather than shifting trade to Lomé or Abidjan. Greater integration under AfCFTA frameworks positions Ghana as a potential leading maritime logistics hub for intra African trade, though realizing this potential requires addressing infrastructure gaps and operational inefficiencies that currently advantage regional competitors.

Latest news
Related news