Renegotiate Meridian Port Services Concession Agreement - MDU

By Norman Cooper

Tema — The Maritime and Dockworkers' Union (MDU) has called on the government to renegotiate the concession agreement with the Meridian Port Services (MPS) for the construction of the new container terminal at the Tema Port.

It said the concession agreement did not inure to the benefit of the country and would lead to a reduction of Ghana Ports and Harbours Authority's (GPHA) container related businesses from $105 million to $30 million with a resultant loss of more than 1,400 jobs for the Authority.

The National Executive Council of the MDU made the call in a resolution at its 63rd session held in Tema at the weekend.

According to the MDU, the concession agreement of the project which was more than 800 million dollars was too high when considered against the investment cost of 1.5 billion dollars which had been reduced to about 1.1 billion dollars after the revaluation.

It said that the process of the development of the concession agreement was flawed because the contract did not go through competitive bidding.

"The council expresses deep worry that, when the new container terminal of MPS becomes operational in June 2019, Ghana Ports and Habours Authority (GPHA) would lose much of its container related businesses which would result in loss of huge revenues from reducing royalty, rents, port dues, berth and occupancy among others," the resolution said.

It said the Council averred that the implementation of the agreement in its current form would lead to a reduction of GHPHA's container related businesses from 105 million dollars to 30 million dollars with a resultant loss of over 1,400 jobs for GPHA alone.

On the Paperless and Port Automation, the Council supported the efforts of government to ensure competitiveness and efficiency in the port operations and revenue assurance by government, saying the system had helped in reducing the time and cost of clearing goods at the ports.

"Whilst supporting the introduction of automation in the ports to make the labour more efficient, the Council is concerned that the automation should not lead to job losses," it said, adding that machines and technology must not take over the jobs of workers and that there should not be automation without negotiations.

On import taxes, the Council expressed concern about that the high levels of import duties at the port currently was having a negative impact on cargo volumes arriving at the port.

"The MDU notes further that available statistics indicate a three per cent reduction of cargo throughput in the third quarter of 2018 compared to same period in 2018. Already there is a steady reduction n the rate of increase in cargo volumes for the first three quarters (January-September, 2018) compared to the same period in 2017)," the resolution stated.

The union urged government to ensure that taxes on imports were reduced to help the manufacturing sector and ensure that essential goods were brought in for consumption.

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