Parliament Passes Ghana Shippers’ Authority Bill

 

Parliament has passed the Ghana Shippers’ Authority Bill, 2024, aimed at empowering the Ghana Shippers’ Authority (GSA) to regulate the shipping industry effectively.

The bill, presented by Deputy Transport Minister, Alhassan Tampuli Sulemana, seeks to repeal and replace the existing Ghana Shippers’ Authority Act, 1974 (NRCD 254).

The new legislation will enable the GSA to regulate commercial activities of shippers and shipping service providers, ensure compliance with established standards, and promote local content in the industry.

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

The Ghana Shippers’ Authority Bill, 2024, comprises 56 clauses and one schedule, and is expected to enhance the GSA’s mandate and capacity to regulate and standardise shipping charges, fees, and requirements.

The bill’s passage is seen as a positive step towards promoting economic growth, sustainability, and Ghana’s participation in the “Blue Economy.”

Background

The Ghana Shippers’ Authority was established in 1974 by the Ghana Shippers’ Authority Act, 1974 (NRCD 254) with the mandate of organising shippers and equipping them with the adequate bargaining power to obtain adequate and efficient services in respect of the shipment of cargo by sea at optimum cost.

However, the Act has not undergone any significant reviews after 50 years of its enactment, although the shipping industry has undergone numerous transformations.

Ghana’s international transit trade has become an area of concern. Since 1987, the Authority has been spearheading the development, monitoring and facilitation of the transit trade through Ghana’s corridors.

However, the legal framework to regulate the transit trade to ensure that Ghana derives maximum benefits from transit trade is nonexistent.

There was therefore the need to amend the existing legislation to amongst other developments in the shipping industry, to capacitate the Authority to monitor and regulate transit trade.

Justification

Government said shippers within the country were fragmented with weak bargaining power against multinational shipping service providers, exposing them to unfair treatment.

This has also resulted in the control of the port by multinational companies who end up imposing exorbitant fees on port users, resulting in an increased cost of shipping and trade for focal businesses.

“It has become increasingly necessary to amend the existing legislation regulating the shipping industry to significantly enhance the GSA’s mandate and capacity to regulate and standardise shipping charges, fees, and requirements imposed by service providers,” Members of Parliament (MPs) also said in a report.

According to them, the amendment would ensure fair and transparent pricing to protect local businesses from exploitative practices.

Further, the bill would facilitate the promotion of local content in the shipping industry, ensuring that local businesses and workforce are integrated into the shipping value chain to promote economic growth and sustainability.

By Ernest Kofi Adu, Parliament House

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