Ghana rakes in $34m annually from transit business

Ghana has long been a preferred corridor for landlocked countries such as Burkina Faso, Niger and Mali, with their commercial operators using the country's roads to transport seaborne cargo. 

This transit trade contributes significantly to the country's economy, generating over $34 million annually from services associated with the handling and movement of transit cargo, payments to haulage truck operators, freight forwarders, electronic tracking operators and fuel stations.

These benefits notwithstanding, Ghana’s transit trade is beset with myriads of challenges that threaten to erode the gains made overtime as the preferred corridor in the subregion. 

Transit operators have reported issues such as high charges by service providers, incessant port delays, high haulage costs, numerous check points, deplorable road conditions, lack of rest stops and other non-tariff barriers. 

Solutions 

A Deputy Chief Executive Officer of Ghana Shipper’ Authority (GSA), Prince Henry Ankrah, who made this known at a sensitisation workshop organised by the authority at Tema, explained that the solutions to the challenges required nothing less than the collective effort of all stakeholders in the transit trade ecosystem.

“The government for its part has enacted the facilitation of transit trade in the Ghana Shippers’ Authority Act, 2024 (Act 1122) to strengthen the authority’s arm in streamlining processes of service providers and stakeholders for the benefit of all players in the industry.

“Additionally, Act 1122 empowers the authority to approve charges and shipment conditions of shipping service providers and to ensure compliance. We are confident that this legal framework will further contribute to improving service standards and reducing the cost of doing business at Ghana’s ports,” he said in a speech read on behalf of the CEO of the GSA, Prof Ransford Gyampo.

He said the authority was mandated to regulate commercial activities of shippers and shipping service providers in the shipment, storage, and delivery of international trade cargo. 

He said over the years, the authority had collaborated with stakeholders in the trade and transport industry to find solutions to challenges impeding commercial shipping in Ghana.

Overloading trucks 

The Representative of the Ghana Highways Authority, Elizabeth Arjarquah explained that overloading trucks begins at the loading stage and was mostly caused by decisions taken by truck owners and their agents. 

She said the practice leads to faster road deterioration and rising maintenance costs.

She stated that Economic Community of West African States (ECOWAS) and West African Economic and Monetary Union (UEMOA) have harmonised axle load control regulations and signed a supplementary legal framework in Accra in July 2022. 

She said all 15 ECOWAS member states endorsed the changes, with full implementation expected in 2026.

Technical inspection 

Mrs Arjarquah said that every vehicle would now be subject to technical inspection before registration and entry into service. 

The inspection will cover vehicle dimensions, unladen weight with a full tank, and total laden weight.

She stressed that trucks that fail to meet these standards will not be permitted to operate.

Openness 

The Deputy Chief Executive Officer in-charge of Technical Services, Sylvia Asana Owu, welcomed the openness of the discussions and assured drivers that GSA would continue to protect their welfare. 

She said the conversations reflected mutual respect and urged JAPTU and other unions to deepen cooperation with GSA as reforms continued.

She said the Tema sensitisation formed part of GSA’s wider strategy to engage directly with those who drove regional trade. 

“As Ghana looks to maintain its edge as the gateway for Sahelian economies, GSA believes that transparent policies, responsive leadership, and stronger stakeholder dialogue will be key to achieving that goal.”

The workshop 

The sensitisation workshop focused on the country’s new shipping legislation and ongoing efforts to improve the efficiency of Ghana’s transit corridors. 

Chaired by the Principal Marketing and Corporate Affairs Officer at the Ghana Ports and Harbours Authority (GPHA), Kennedy Monnah, the workshop brought together key stakeholders in the transport and logistics such as truck drivers and haulage operators.

Also present were representatives of Ghana Private Road Transport Union, the Joint Association of Port Transport Unions (JAPTU), the Chemicals Control and Management Centre of the Environmental Protection Authority, and senior management of GSA, including the Deputy Chief Executive Officer (Technical), Sylvia Asana Owu, Head of Operations, Monica Josiah, and the Eastern Zonal Manager, Charles Darling Sey.

Concerns 

The participants took turns to express  their opinion and raised several concerns on issues impacting their operations. 

Some asked if the new number plate delivery system would come with extra costs. 

Others questioned why drivers were not consulted in the development of the new axle load amendments. 

Participants also expressed uncertainty about the timelines for enforcement and called for clearer information from regulators.