IEAG Sounds Alarm Over Port Congestion, Threat To Ghana’s Trade

The Importers and Exporters Association of Ghana (IEAG) has warned that persistent congestion and delays at the country’s ports could drive importers to neighbouring countries, particularly Côte d’Ivoire, if urgent measures are not taken to address the problem.

The Association said it was already receiving indications that some importers were considering routing their cargo through the Port of Abidjan because of delays and uncertainties associated with clearing goods through Ghana’s ports.

At a Press Conference addressed by its Founder and President, Sampson Asaki Awingobit, the Association indicated that the development poses a serious threat to Ghana’s trade competitiveness and could have wider implications for revenue mobilisation and the national economy.

“Once an importer establishes a reliable alternative supply chain through another regional gateway, winning that business back becomes extremely difficult,” he said.

IEAG said the congestion was not the result of a single factor or institution, but rather a systemic problem involving Customs valuation and examination procedures, inspection protocols, regulatory charges, terminal operations, truck turnaround times and inter-agency coordination.

The Association has consequently called on the Chief of Staff to urgently convene and lead a high-level government delegation involving the Ministers of Finance, Trade, Agribusiness and Industry, and Transport, as well as relevant port and regulatory agencies, to develop an immediate action plan to decongest the ports.

74% RED-ROUTING

A major concern raised by the IEAG is the reported high rate of containers being subjected to physical and intrusive examination.

The Association said preliminary information from its engagements with port operators suggested that approximately 74 per cent of containers undergoing scanning were being routed to the red channel for physical examination.

It stressed that the figure required independent verification but argued that, if confirmed, it should trigger an immediate review of Customs’ risk-profiling and selectivity system.

IEAG said excessive physical examination could itself become a source of congestion because each additional inspection requires equipment, manpower, positioning, stripping, reloading and movement of containers.

It therefore called for a data-driven assessment of the green, yellow and red channels, including how many red-routed containers subsequently result in discrepancies, revenue recovery or enforcement action.

MULTIPLE INSPECTIONS

The Association also blamed what it described as a breakdown in the joint inspection regime involving Customs and other regulatory agencies.

It said containers requiring multi-agency inspection were sometimes subjected to separate examinations because representatives of some agencies allegedly failed to participate in the initial coordinated inspection.

The practice, according to IEAG, results in repeated container movements, additional handling, longer dwell times and increased costs.

The Association further raised allegations that some operators were being asked for unofficial payments of up to GH¢1,000 to avoid additional inspections, but stressed that the allegations required independent investigation.

FEES, TRUCK DELAYS

IEAG also expressed concern over what it described as significant increases in regulatory, inspection, certification and processing charges imposed by agencies operating at the ports.

It said the cumulative effect of charges from agencies including the Ghana Standards Authority, Food and Drugs Authority and Environmental Protection Agency was increasing the administrative and financial burden on importers.

According to the Association, delays in resolving disputed charges and obtaining regulatory approvals contribute to longer cargo dwell times, demurrage, storage and container detention costs.

The Association also cited prolonged truck turnaround times at some terminals, saying the problem was discouraging some drivers from accepting assignments involving particular shipping-line facilities.

It said trucks that spend several hours waiting to load or exit terminals reduce the effective capacity of the national haulage fleet, increase fuel and operating costs and contribute to the accumulation of uncleared containers.

CALL FOR PORT PERFORMANCE TARGETS

IEAG said the situation could worsen as Ghana approaches the final quarter of the year and the December peak trading period.

It warned that without immediate intervention, cargo dwell times, demurrage liabilities, truck queues and operational costs could increase significantly.

The Association proposed measurable performance targets for port operations, including maximum turnaround times for examinations, valuation disputes, regulatory inspections, truck processing and cargo release.

It said every agency operating at the ports should be held accountable for the amount of time its processes add to the cargo clearance chain.

“Ghana needs a port system that is not only capable of generating revenue but also capable of facilitating trade efficiently, predictably and competitively,” the IEAG said.

The Association warned that failure to act could leave the government facing not only a port congestion crisis in December, but also the more difficult task of winning back importers who may have shifted their supply chains to competing regional ports.

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