Shippers’ Authority Bill passed

Following its successful third reading on Monday, July 29, 2024, Ghana’s Parliament has passed the Ghana Shippers’ Authority Bill into law.

The new legislation amends the 50-year-old NRCD 254 (1974) establishment law, introducing key reforms to regulate the commercial activities of shippers in Ghana.

The new law addresses unfair and excessive charges that burden traders utilizing Ghana’s sea and air ports, as well as land borders for international trade. It aims to introduce transparency in the determination of port fees and charges, ensuring accountability in the legal movement of international trade cargo across all borders of Ghana.

One of the significant goals of the law is to make Ghana a preferred transit trade channel for its landlocked neighbors, Burkina Faso, Mali, and Niger, thereby enhancing the sector’s revenue contribution to the national purse.

With this legislation, the Ghana Shippers’ Authority (GSA) is now better equipped to adapt to emerging trends and complexities within the shipping and logistics industry, protect the interests of shippers and shipping service providers, and improve its regulatory oversight of the entire industry.

The Committee on Roads and Transportation’s report emphasized the importance of effective regulation in the shipping and logistics sector to guarantee fair pricing and charges for all stakeholders, especially importers and exporters. The Bill empowers the GSA to facilitate fair fee charges at the ports and borders, promoting the participation of local firms in providing services within the sector.

Transport Minister Kwaku Ofori Asiamah expressed satisfaction with the Bill’s passage, noting that it would enhance the GSA’s ability to fulfill its statutory mandate. The Committee highlighted that exorbitant charges by some service providers, particularly at sea and air ports, hinder business growth and contribute to unnecessary price increases for goods and services. The new law is expected to enhance transparency and accountability, driving improved revenue generation and collection for national socio-economic growth.

Established 50 years ago by NRCD 254 (1974), the GSA has regulated the commercial activities of shippers and shipping service providers in the shipment, storage, and delivery of international trade cargo by sea, air, and land. Over the decades, the GSA has ensured compliance with established standards and guidelines in Ghana’s commercial shipping sector and facilitated transit trade through Ghana’s corridors to Burkina Faso, Niger, and Mali.

The new law aims to enable more effective regulation of transit trade, balancing the interests of shippers and service providers for enhanced efficiency and competitiveness in international trade.

GSA Chief Executive Officer Kwesi Baffour Sarpong hailed the amended law as a significant step forward, emphasizing a collaborative approach to addressing any issues that may arise. He assured stakeholders that the law’s enforcement would be fair and representative of the shipping industry’s interests, marking a major win for Ghana in its quest to become the preferred trade hub in the region.

Mr. Sarpong expressed gratitude to industry stakeholders, including trade associations, shipping service providers, shipping lines, state agencies, the Attorney-General’s Department, and the Ministry of Transport, for their invaluable contributions to the Bill. He also thanked President Nana Addo-Dankwa Akufo-Addo, the Cabinet, and Parliament for their commitment to a cause that holds immeasurable benefits for all stakeholders and promises better fortunes for Ghana.

Finally, Mr. Sarpong applauded the Board, Management, and staff of the GSA, both past and present, for their indefatigable efforts in bringing the new law into being.