Port congestion could undermine 24-hour economy policy – GUTA

The Ghana Union of Traders’ Associations (GUTA) has warned that the persistent congestion at the Port of Tema could undermine the government’s 24-hour economy policy if urgent measures are not taken to restore smooth port operations.

GUTA is calling on the Ghana Ports and Harbours Authority (GPHA) to urgently engage shipping lines and other stakeholders to address the situation.

In a statement signed by its President, Clement Boateng, GUTA said the ongoing congestion is having a serious impact on businesses and increasing the cost of doing business.

“We wish to state that the ongoing congestion is having a severe negative impact on business and is adding an additional layer of cost to doing business,” the association said.

GUTA CALLS ON GHPA TO ACT SWIFTLY

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GUTA attributed the congestion largely to the failure to discharge unstuffed empty containers at the various shipping line depots and yards.

“As a result, trucks continue to queue from the port entrance to as far as the gates of the Regional Maritime University,” the association said.

According to GUTA, some drivers have been stuck in the queue for almost a week before they are able to discharge their empty containers.

“Investigations by GUTA have revealed that this situation is leading to demurrage charges, as some unstuffed containers are still occupying space at the terminals, making it impossible for stuffed containers to be brought in for examination and clearing,” the statement said.

GUTA further identified inadequate logistics among some shipping lines as another factor worsening the congestion.

The traders’ association warned that if the situation persists, it could have implications for the government’s 24-hour economy policy.

“It will have a negative impact on the government’s 24-hour economy policy at the port,” GUTA cautioned.

“Since we are almost at the end of the year, imports are going to peak and if this issue is not addressed immediately, the situation will worsen in the coming months,” it added.

GUTA further cautioned that prolonged congestion and the resulting demurrage charges would ultimately affect consumers.

“If not addressed, importers will continue to incur demurrage charges which will be added to the cost of doing business, and this will ultimately translate into high prices of goods and services for the final consumer,” the association said.

GUTA is therefore calling for “immediate stakeholder engagement” involving the GPHA and shipping lines to resolve the congestion.

The association said swift action is needed to improve the movement of containers, reduce unnecessary costs for importers and protect consumers from further price increases.