PORT MANAGEMENT ASSOCIATION OF
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1 PORT MANAGEMENT ASSOCIATION OF WEST AND CENTRAL AFRICA 13 TH ROUND TABLE CONFERENCE GOLF HOTEL ABIDJAN; JUNE 29 - JULY 2, 2015
2 PORT TRANSIT COSTS PERSPECTIVES AND EXPERIENCES OF GHANA PORTS BY RICHARD A. Y. ANAMOO DIRECTOR - GENERAL (GPHA)
3 OUTLINE Introduction The Nature of Port Transit Costs Port Authority and Terminal Operator Charges Charges of Other Economic Operators Aggregate of Container Handling Costs Strategies for Reducing Costs s Conclusion
4 Introduction Ports play a very strategic roles in facilitating World Trade. They are the main international gateways for a country s import and export trades. It is estimated that 90% by volume and 80% by value of worlds international trade in merchandise is routed through orts. In many developing countries, the bulk of internal revenue in the form of customs duty and import VAT are collected at the ports. These make ports veritable engines of economic growth.
5 THE NATURE OF ORT TRANSIT COSTS
6 The Nature of Port Transit Costs Port Transit Costs are the monetary measure of what port users pay to the Port Authority and Terminal Operators for using facilities and services of a port. Port Transit Cost is an important component of Transport Costs. For seaborne trade, transport cost is extremely important; and it is made up of the following: Inland transport between the place of production and the port of shipment, The cost of handling the goods through the ports of export and import (port costs); and The cost of carrying the goods on the sea leg (maritime transport cost)
7 The Nature of Port Transit Costs Transport cost, of which port transit cost is an important component, is a major determinant of the landed price of goods. For low value primary products, transport costs constitute a major proportion of the landed price. The need to improve port transit costs as part of overall strategy to improving the competitiveness of the exports of developing countries in global markets is an imperative.
8 The Nature of Port Transit Costs Port Transit Costs generally comprise the following: 1. Charges by Port Authority and Terminal Operators: Dues on Cargo and Vessels Charges for the services used in bringing vessel into and out of Port Charges for the Loading/Offloading the Vessel (Stevedoring) Charges for Receipt and Delivery Charges for Storage of Cargo in the Port
9 2. Charges for Services Provided by other Economic Operators Shipping Line Charges Container Administration Charge Port Security Charge Evacuation Charge Demurrage Charge Release and Documentation Freight Forwarder/Clearing Agent Charges Freight Transport Operator Charges
10 PORT AUTHORITY AND TERMINAL OPERATOR CHARGES
11 PORT DUES US$ DESCRIPTION Import Export Transhipment Transit Dry Bulk Conventional Unpacked Saloon Car Container - 20' Full Container - 20' Empty Container - 40' Full Container - 40' Empty
12 VESSEL HANDLING (MARINE SERVICES) CHARGES Vessel LOA = 200 metres; Vessel Gross Ton=25,000; Time at Berth=72 Hours Description US$ Pilotage 1, Towage 3, Mooring/Unmooring Berth Occupancy 3, Light Dues 2, Remarks For inbound and Outbound Journey
13 STEVEDORAGE US$ DESCRIPTION Import Export Transhipment Transit Dry Bulk Conventional Unpacked Saloon Car Container - 20' Full Container - 20' Empty Container - 40' Full Container - 40' Empty
14 RECEIPT AND DELIVERY CHARGES US$ DESCRIPTION Import Export Transhipment Transit Conventional Unpacked Saloon Car Container - 20' Full Container - 20' Empty Container - 40' Full Container - 40' Empty
15 FOR EXAMPLE: MV SANTHYA (CONTAINERS) US$ % Vessel Handling 14, Port Dues 59, Stevedore 164, TOTAL 239,
16 M.V. Diligence Vessel LOA: 169 m Vessel GT=16761; Vessel Time at Berth Hours; Cargo = 14,930 Tonnes) US$ % VESSEL HANDLING 13, PORT DUES 59, STEVEDORING 164, TOTAL 239,
17 CHARGES OF OTHER ECONOMIC OPERATORS
18 Sample Charges of Other Economic Operators 20 Import Container Shipping Line Charges US$ Container Administration Charge Port Security Charge Container Cleaning Charge Freight Forwarder Charges 85.00
19 TRANSPORT CHARGES (SOURCE: GNTDA 2013 TARIFF) ROAD FREIGHT TRANSPORT CHARGES DISTANCE (Km) 20 CONTAINER US $ 40 CONTAINER US $ TEMA (Afienya) SPINTEX ACCRA KUMASI TAKORADI BOLGA ,050 ELUBO AFLAO PAGA ,000 1,350
20 AGGREGATE OF CONTAINER HANDLING COSTS
21 Aggregate Cost of 1 X 20 Import Full Cont. 1. Port Authority/Terminal Operator US$ % Port Dues Stevedorage Receipt and Delivery Shipping Line/Agent C Container Administration Port Security Charge Container Cleaning Freight Forwarder Professional Fee GRAND TOTAL
22 STRATEGIES FOR REDUCING COST OF DOING BUSINESS IN THE PORTS
23 Strategies for Reducing Cost of Doing Business in the Ports Port Reforms Increasing Private Sector Participation in the management and operations of the Port Investing in new Facilities Development of ICDs, Procurement of New Cargo Handling Equipment, Dredging, etc. Deployment of Information Technology investment in IT to improve business processes - Massive
24 Strategies for Reducing Cost of Doing Business in the Ports Training and Development of Staff Training of Staff in Port Operations and Customer Care Adoption of ISO 9000 Quality Standards Implementation of ISO 9000 quality management system to enhance efficiency and service quality. Collaboration with Stakeholders Collaboration with Customs, Freight Forwarders, Transport Operators, Concessionaires, Licencees, etc. to improve service delivery. Regulation of Charges - The Ghana Shippers Authority has been mandated by law to approve charges of service providers.
25 Procurement of Additional Cargo Handling Equipment Reachstackers and Forklift Trucks Rubber-tyred gantry cranes delivered in June, 2013
26 MOBILE HARBOUR CRANES
27 ELECTRONIC GATES: OPTICAL CHARACTER RECOGNITION SYSTEM
28 CONCLUSION
29 CONCLUSION 1. Port Transit Cost is an important component of Transport Costs. 2. Transport costs impact the landed costs of goods and the competitiveness of a country s exports. 3. The key to reducing port costs is to improve port performance and productivity. 4. This requires collaborative efforts by all port operators and stakeholders. 5. The port authority should take a lead role in promoting efficiency of the ports and relative services.
30 . Thanks For Your Kind Attention
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