GPHA Rejects Claims That Tema Port Congestion Alone Is Driving Cement Prices

by Mawuli
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The Ghana Ports and Harbours Authority (GPHA) has rejected claims that congestion at the Tema Port is solely responsible for the recent increase in cement prices in Ghana, saying several operational, logistical and commercial factors influence the cost of importing clinker and cement.

In a statement issued on September 10, 2026, the GPHA explained that the pricing of imported clinker and cement depends on a wider supply chain involving vessel planning, cargo discharge, transportation, port operations and other commercial expenses.

The clarification follows concerns raised by the Chamber of Cement Manufacturers, Ghana (COCMAG), which attributed recent increases in cement prices partly to congestion at the Tema Port.

COCMAG subsequently introduced a temporary GH¢12 per-bag surcharge linked to clinker demurrage. The charge comprises GH¢10 before tax, with an additional GH¢2 covering taxes and levies.

GPHA Explains Factors Behind Tema Port Congestion

The GPHA said it has a responsibility to ensure that all port users receive efficient services while maintaining safe, hygienic and effective port operations.

According to the Authority, the Tema Port handles different categories of cargo, including food products such as rice and wheat. These commodities must be kept separate from cement and clinker operations due to hygiene and safety requirements.

This separation, the GPHA explained, is one of the factors considered when allocating berths to vessels.

The Authority also disclosed that it carried out strategic dredging at the bulk cargo section of the Tema Port in preparation for larger vessels, higher cargo volumes and vessels requiring deeper drafts.

Cement manufacturers were reportedly informed in advance about the duration of the dredging project and were encouraged to plan their vessel arrivals and berthing schedules accordingly.

The GPHA stressed that the cement industry is among the direct beneficiaries of the completed dredging project.

Following the works, Berth 13 can accommodate depths of up to 14 metres, while Berth 14 offers depths of up to 12 metres.

The deeper berths are expected to allow cement manufacturers to receive larger vessels, potentially benefiting from economies of scale and helping reduce logistics costs per unit.

Government Secures Additional Berth to Reduce Clinker Backlog

In a move aimed at preventing further increases in cement prices in Ghana, an additional berth has been secured at the Tema Port to help clear the growing backlog of clinker vessels and reduce rising demurrage costs faced by cement manufacturers.

The temporary berth forms part of several emergency measures agreed upon following an urgent meeting held on Friday, September 11, 2026.

The meeting brought together the Ministers responsible for Transport and Trade, Agribusiness and Industry, officials from the GPHA and Ghana Revenue Authority (GRA), as well as representatives of the cement manufacturing industry.

The situation at the Tema Port has deteriorated significantly in recent months. Average vessel waiting times, which stood at about seven days in January 2026, increased to between 30 and 40 days or more by August 2026.

Industry estimates indicate that cement manufacturers have incurred between US$45 million and US$50 million in demurrage costs during the first eight months of 2026.

Manufacturers have warned that such costs cannot continue to be absorbed indefinitely without eventually affecting retail cement prices and construction costs in Ghana.

Government Moves to Prevent Further Cement Price Increases

After touring the Tema Port on Friday, Trade, Agribusiness and Industry Minister Elizabeth Ofosu-Adjare said the government would take steps to address the congestion and prevent the situation from worsening.

She also cautioned cement manufacturers against using port congestion as the sole justification for further increases in cement prices.

The Minister said the government’s immediate priority was to clear the existing clinker vessel backlog and establish long-term measures to prevent similar bottlenecks from occurring in the future.

The additional berth is expected to provide immediate capacity while other operational interventions are implemented.

Dredging to Allow Larger Clinker Vessels

Transport Minister Joseph Bukari Nikpe also highlighted the importance of the recently completed dredging works at the Tema Port.

According to him, the deeper port channel will allow larger vessels to berth more efficiently, potentially reducing the number of ships waiting offshore and lowering clinker demurrage costs.

Nikpe said the completion of the dredging works should now be communicated to shipping companies worldwide so they can deploy larger vessels capable of using the deeper berths.

The Transport Minister further urged cement manufacturers to reconsider their import strategies by consolidating shipments into fewer but larger vessels.

Such an approach, he explained, could improve economies of scale and help reduce the logistics costs associated with clinker imports.

The government also plans to work closely with cement producers to speed up the movement of clinker from the quayside to factory warehouses.

Faster cargo evacuation would reduce the amount of time vessels occupy berths and improve overall port efficiency at Tema.

Truck Shortages Also Affect Clinker Discharge

The GPHA said congestion at the Tema Port cannot be considered independently of the wider logistics and supply chain.

One major factor identified by the Authority is the availability of trucks to evacuate clinker from the port to cement factories.

The GPHA explained that a vessel carrying approximately 40,000 tonnes of clinker may depend on a limited number of trucks to transport the cargo to factories located outside the port.

When there are not enough trucks, or when trucks are delayed by traffic congestion, clinker discharge can slow considerably.

This can result in vessels occupying berths for extended periods, sometimes for seven days or longer.

The prolonged occupation of berths reduces the availability of berthing space for other vessels and places additional pressure on port operations.

GPHA Plans Modern Cement and Clinker Handling Systems

The GPHA also disclosed plans to modernise the handling of cement and clinker at the Tema Port.

Under the proposed improvements, traditional cargo-handling methods involving grabs and hoppers will gradually give way to more modern and efficient systems.

The Authority has urged cement companies to embrace the new technology and invest in improved handling infrastructure.

According to the GPHA, modern cargo-handling systems could increase discharge rates, reduce vessel turnaround times, improve berth utilisation and make Ghana’s ports more competitive.

Faster vessel turnaround would also help reduce the accumulation of clinker vessels waiting to berth and potentially lower demurrage expenses for cement importers.

Cement Prices Depend on the Wider Supply Chain

The GPHA stressed that resolving port congestion requires cooperation between all stakeholders involved in Ghana’s cement supply chain.

It identified proper vessel scheduling, adequate trucking capacity, efficient cargo discharge, modern handling technology and timely evacuation of imported clinker as important measures for reducing delays.

The Authority therefore urged the public and industry stakeholders to consider the complete logistics chain when assessing cement prices in Ghana.

This includes vessel planning, cargo discharge efficiency, trucking arrangements, factory locations, port selection and other commercial costs.

The GPHA maintained that attributing increases in cement prices solely to Tema Port congestion does not provide a complete picture of the factors influencing the final cost of cement.

Impact on Ghana’s Construction Industry

The issue has significant implications for Ghana’s construction sector because cement is a critical input for housing projects, road construction, public infrastructure and private developments.

A prolonged increase in demurrage and other logistics costs could eventually place additional pressure on cement prices, potentially increasing the cost of construction for households, businesses and government projects.

The government’s emergency measures are therefore intended to clear the current clinker backlog, reduce vessel waiting times and prevent demurrage expenses from triggering additional cement price increases.

The success of the intervention will depend on how quickly the additional berth clears the backlog and how effectively longer-term measures, including deeper berths, larger vessels, improved cargo handling and faster inland evacuation, are implemented.

The GPHA said it remains committed to working with cement manufacturers and other stakeholders to improve berth utilisation, cargo evacuation and port efficiency across Ghana.

The Authority maintained that a coordinated approach involving shipping companies, cement manufacturers, transport operators, port authorities and other stakeholders will be essential to achieving a more efficient and competitive port system and helping to stabilise cement prices in Ghana.

Source: newsthemegh.com

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