New Shippers’ Authority law to sanitize shipping industry

In a move set to revolutionalize Ghana’s shipping industry, Parliament on Monday, July 29, 2024, 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.

“Hon. Members, the Ghana Shippers’ Authority Bill, 2024, duly read the third time and passed”, the Speaker, Alban Sunama Kingsford Bagbin announced the passage, hitting his gavel to signify the end of the processes.

The amended law repeals and replaces the 50-year-old establishment law of the organization, the 1974 Act (NRCD 254). It addresses gaps identified in the old law, and 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 airports, as well as land borders to ply their international trade.

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.

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, and accountability, and invariably, drive improved revenue generation, and collection for national socio-economic growth.

Transparency

The Chief Executive Officer of the GSA, Kwasi Baffour Sarpong, welcomed the passage of the Bill into law, saying the new law introduces transparency in port fees and charges determination, ensuring accountability in international trade cargo movement.

“The new law will now empower the Ghana Shippers’ Authority to better adapt to emerging trends and complexities within the shipping and logistics industry, protect the interests of shippers and service providers, and improve its regulatory oversight of commercial shipping in the entire industry”, he noted.

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 organize shippers and equip them with bargaining power.

However, the Act had not undergone significant reviews in 50 years, making it unresponsive to industry transformations. 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.

Justification

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.

The Ministry emphasizes the need to amend existing legislation to enhance the GSA’s mandate and capacity to regulate and standardize shipping charges.