New Shippers’ Authority Law to sanitise shipping industry

Parliament has passed the Ghana Shippers’ Authority (GSA) Bill, 2024 into law, empowering the state agency to address long-standing 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 law which established the organisation, the 1974 Act (NRCD 254). It addresses gaps identified in the old law, existing Legislative Instrument (L.I) and ensures global best practices.

The new law aims to address the issue of unfair and excessive charges burdening traders who use Ghana’s sea and air ports, as well as land borders to ply their international trade.

Passage

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

“The Ghana Shippers’ Authority Bill, 2024, duly read the third time and passed”, the Speaker, Alban Sumana Kingsford Bagbin, summed up to announce the passage, hitting his gavel to signify the end of the process.

Regulation

It is anticipated that the passage of the Bill would ensure effective regulation of the shipping and logistics sector, guaranteeing fair pricing and charges for all stakeholders. It would also empower the GSA to control fees at the ports and borders, and promote the participation of local firms in the sector.

The new law is further expected to enhance transparency, accountability, and invariably drive improved revenue generation and collection for Ghana’s socio-economic growth.

Transparency

Responding to the development, the Chief Executive Officer of the GSA, Kwasi Baffour Sarpong, welcomed the passage of the Bill into law, saying the new law would introduce transparency in port fees, charges determination and ensure accountability in international cargo movement.

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

Background

The Ghana Shippers’ Authority was established in 1974 by the Ghana Shippers’ Authority Act, 1974 (NRCD 254) to organise shippers and equip them with bargaining power.

However, the Act had not undergone significant reviews in 50 years, making it unresponsive to the transformation that have occurred in the industry. The Authority has been spearheading transit trade development since 1987, but the legal framework to regulate transit trade and ensure maximum benefits for Ghana is nonexistent.

The Ministry of Transport is of the view that the exorbitant charges by service providers hinder business growth and contribute to price hikes. The lack of legislation empowering the GSA to regulate port charges worsens this issue.