Port Congestion Not the Sole Reason for Cement Price Hike, Says GPHA

Tema: The Ghana Ports and Harbours Authority (GPHA) has rejected claims by cement manufacturers that congestion at the Tema Port is solely responsible for recent increases in cement prices.

According to Ghana Web, the Authority emphasized that port congestion alone does not justify the price increases, as several operational and commercial factors affect the cost of importing clinker and cement. In a recent statement, GPHA responded to the Chamber of Cement Manufacturers, Ghana (COCMAG), which had attributed the recent price hikes to congestion at the Tema Port.

GPHA clarified that the challenges impacting the movement of clinker include inadequate trucking capacity among cement companies. A vessel carrying approximately 40,000 tonnes of clinker is often dependent on a limited number of trucks to transport the cargo from the port to factories outside the port area. Delays in securing trucks and traffic congestion can slow down cargo discharge, causing vessels to occupy berths for extended periods, sometimes up to seven days.

The Authority also dismissed suggestions that its berth allocation system disadvantages cement importers. It explained that food cargo, such as rice and wheat, must be handled separately from cement and clinker due to hygiene and safety requirements. Berths 3, 13, and 14 at the Tema Port are shared among multiple cement companies and are not reserved for any specific importer.

Recent dredging works at the port have improved depths at Berth 13 to 14 metres and Berth 14 to 12 metres, allowing cement companies to receive larger vessels and benefit from lower costs through economies of scale. Additionally, the Port of Takoradi remains an alternative for handling cement and clinker cargo.

GPHA is modernizing cargo-handling operations at the Tema Port by phasing out the traditional use of grabs and hoppers. It has urged cement manufacturers to invest in these new systems when introduced. This development follows a recent GHS12-per-bag increase in cement prices by major manufacturers in Ghana, who had attributed the increase to additional costs from delays in clearing imported clinker at the Tema Port.