New Shippers Authority Law to Ensure Transparency and Accountability in Port Fees and Cargo Movement

The Ghana Shippers’ Authority has hailed the passage of the new Shippers’ Authority Bill, 2024.

According to the Director of Business Development and Commercial Service at the Authority, Emmanuel Kofi Arku, the new law will ensure transparency and accountability in port fees and cargo movements.

Addressing members of the Parliamentary Press Corps shortly after the bill was passed by the House, Mr Arku said the state agency has now been empowered to tackle longstanding issues of unfair charges, lack of transparency, and ineffective regulation that have plagued the blue economy.

The amended law repeals and replaces the 50-year-old NRCD 254 Act of 1974, addressing gaps in the old law and existing Legislative Instrument (L.I), ensuring adherence to global best practices. The new legislation aims to alleviate the burden of unfair and excessive charges on traders using Ghana’s sea and airports, as well as land borders for international trade.

Welcoming the development, Mr Arku said the new law would introduce transparency in the determination of port fees and charges, ensuring accountability in the movement of international cargo. He also added that it would enable more effective regulation of transit trade, balancing the interests of shippers and service providers for enhanced efficiency and competitiveness.

The Bill, presented by the Ministry of Transport, comes in response to concerns over the country’s international transit trade, the lack of a legal framework, and the need to protect shippers from unfair treatment by multinational shipping service providers.

The new law is anticipated to ensure effective regulation of the shipping and logistics sector, guaranteeing fair pricing and charges for all stakeholders. Additionally, the law is expected to enhance transparency and accountability, driving improved revenue generation for Ghana’s socio-economic growth.

Background

The Ghana Shippers’ Authority was established in 1974 by the NRCD 254 Act to organize shippers and equip them with bargaining power. However, the Act had not undergone significant review in 50 years, rendering it unresponsive to industry transformations. Since 1987, the GSA has been spearheading transit trade development, but the lack of a legal framework to regulate transit trade has hindered maximum benefits for Ghana.

The Ministry of Transport noted that exorbitant charges by service providers have hindered business growth and contributed to price hikes. The absence of legislation empowering the GSA to regulate port charges has exacerbated this issue. The new law aims to address these challenges, providing a robust framework for fair and effective regulation in the shipping and logistics sector.

Source:newsalertgh.com