PORT TRANSIT COST Session 1
-
Upload
agpaoc-pmawca -
Category
Presentations & Public Speaking
-
view
18 -
download
0
Transcript of PORT TRANSIT COST Session 1
Ghana Shippers’ Authority - Providing Shipping Solutions
PORT TRANSIT COST – SOME NATIONAL EFFORTS TO
INFLUENCE THE QUALITY OF PORT SERVICE DELIVERY AND TO REDUCE PORT TRANSIT COSTS
Ghana Shippers’ Authority - Providing Shipping Solutions
PRESENTED AT THE 13TH ROUND TABLE CONFERENCE OF MANAGING DIRECTORS OF PMAWCA, 29-30 JUNE 2015, ABIDJAN
BYABRAHAM OCLOO
GHANA SHIPPERS’ AUTHORITY
Ghana Shippers’ Authority - Providing Shipping Solutions
ORDER OF PRESENTATION1. Introduction2. Some National Efforts To Mitigate High Port Transit Costs 3. Challenges to National Efforts4. The Role of Ghana Shippers’ Authority5. Challenges to GSA Initiatives6. Conclusion
Ghana Shippers’ Authority - Providing Shipping Solutions
1. INTRODUCTION- High cost of doing business hinders development- High Port transit costs, high cost of doing business- This negatively affects port and
country competitiveness
Ghana Shippers’ Authority - Providing Shipping Solutions
- What is Port Transit Cost?+ cost of moving cargo from vessel
through port till warehouse; two aspects+ direct costs– port dues, vessel
handling, stevedoring, terminal charges, etc+ defray cost of facilities and services+ other direct costs include charges of
other service providers & regulatory agencies
Ghana Shippers’ Authority - Providing Shipping Solutions
+ indirect costs – time spent in moving cargo through port; more time, high cost
= complicated customs processes, = destination inspection problems, = cargo release delays at shipping lines= ICT problems= shippers lack of funds, = discrepancies in declarations, etc
Ghana Shippers’ Authority - Providing Shipping Solutions
2. SOME NATIONAL EFFORTS TO MITIGATE HIGH PORT TRANSIT COSTS
- Ports are sources of revenue- GPHA have sought PPP funding to dredge, expand and acquire equipment for the ports to reduce congestion and cost:+ 24/7; automated identification &
retrieval of boxes; plans to have containers scanned before exiting to off-dock terminals; new gantry cranes;
Ghana Shippers’ Authority - Providing Shipping Solutions
- Destination Inspection System- Ghana Customs Management
System and Ghana Community Network or GCNet, an EDI system
- Risk Management and Scanners – to reduce physical examination of boxes
- stakeholders meet to discuss issues of concern and find mutual ways of solving problems
Ghana Shippers’ Authority - Providing Shipping Solutions
3. SOME CHALLENGES TO THE NATIONAL EFFORTS
- 85% of importers pay demurrage and rent
- 7 day demurrage-free period not enough
- ports needs to be free of congestion- meanwhile cargo throughput is
increasing 2000 – 2013 ; over 8.3m tons –
17.7m tons- GCNet to reduce human
interactions yet hard copies are sent the customs reconciliation desk
Ghana Shippers’ Authority - Providing Shipping Solutions
- Customs reject valuations from destination inspection, why?
- scanner and physical examination problems
- talks of mobile or fixed scanners for off- dock terminals?!
Ghana Shippers’ Authority - Providing Shipping Solutions
4. THE ROLE OF GHANA SHIPPERS’ AUTHORITY- its mandate is to protect and promote the interests of shippers in relation to port,
ship and inland transport problems in order to ensure safe, reliable and cost effective shipping
- it does this through:+ infrastructure – Inland port at Boankra+ integrated warehousing= TLP(ppp); bonded warehouses
Ghana Shippers’ Authority - Providing Shipping Solutions
- negotiation of charges & service standards+LI 2190 of 2012
- Advance Shipment Information (ASHI) – electronic system to receive shipment information before vessel arrival –LI 2190 (2013 studies – US$75m demurrage; GHC30m rent)- other benefits of ASHI+ real time information for pre-arrival clearance+ information to GPHA, terminals for planning
delivery
Ghana Shippers’ Authority - Providing Shipping Solutions
+ advance information for DICs & Customs for risk management planning, etc
- Collaboration and Consultation+ interacts with stakeholders to find innovative
ways to reduce delays and cost = GCNet & clearance process
+ Improved Road Transport Governance IRTG/OPA – UEMOA, West Africa trade hub, Borderless,
- Information and Training + through seminars and forums
+ shipper committees
Ghana Shippers’ Authority - Providing Shipping Solutions
5. CHALLENGES TO GSA INITIATIVES- negotiation difficulties+ set charges without GSA; refusal to
negotiate- outcry against ASHI - difficult to understand
since LI was discussed before signing into law - has implementation exposed some selfish
practice? - Should LI 2190 be made stronger?
Ghana Shippers’ Authority - Providing Shipping Solutions
6. CONCLUSION- Successful efforts to influence quality
port service delivery and competitive cost depend on:
+ necessary infrastructure; appropriate equipment; innovation and automation of service;+ all stakeholders (esp. govt. agencies) need to collaborate, corporate and
compliment each others efforts
Ghana Shippers’ Authority - Providing Shipping Solutions
+ Customs should take over valuation of import cargoes (steps reduced)
+ clearing agents activities should be streamlined
+ GSA LI 2190 needs strengthening in area of negotiation
+ Govts. needs to increase diversification of the sources of revenue in order to reduce pressure on the ports
+ more efforts towards value addition to primary products
Ghana Shippers’ Authority - Providing Shipping Solutions
THANK YOU FOR THE ATTENTION