The Ghana Ports and Harbours Authority (GPHA) has dismissed claims that congestion at the Tema Port is the main reason for the recent increase in cement prices in Ghana.
The Authority explained that the cost of importing clinker and cement into Ghana is determined by several operational, logistical and commercial factors. It therefore said the rising cost of cement should not be blamed solely on congestion at the Tema Port.
The clarification comes after the Chamber of Cement Manufacturers, Ghana (COCMAG) attributed recent increases in cement prices partly to congestion at the country’s major port.
In a statement, the GPHA said berth allocation at Tema Port is guided by safety, operational and hygiene considerations. In particular, cement and clinker handling activities must be properly separated from food-related cargo, including commodities such as rice and wheat.
Tema Port Dredging to Support Larger Cement Vessels
The GPHA also highlighted recent improvements at the Tema Port, including dredging works that have increased the depth of Berths 13 and 14.
According to the Authority, the deeper berths allow cement manufacturers and importers to receive larger vessels carrying clinker. This could help companies take advantage of economies of scale, potentially reducing the average cost of transporting imported raw materials.
Trucking Capacity Affecting Port Operations
The GPHA further identified inadequate trucking capacity as another factor contributing to longer vessel stays at the port.
It explained that vessels carrying approximately 40,000 tonnes of clinker can remain at the berth for between three and four weeks when there are delays in evacuating cargo from the port.
Such delays, according to the Authority, can increase vessel turnaround times and put additional pressure on available berthing facilities.
GPHA Calls for Modern Cargo Handling Systems
The Authority has also encouraged cement manufacturers in Ghana to adopt modern cargo-handling technologies being introduced at the Tema Port.
GPHA said improved cargo discharge systems could increase unloading efficiency, reduce vessel turnaround times and help ease pressure on the port’s berths.
Multiple Factors Influence Cement Prices in Ghana
The GPHA stressed that the factors influencing cement prices and construction costs in Ghana extend beyond port congestion.
It said the pricing of cement should be considered within the wider supply chain, including vessel scheduling, trucking capacity, cargo handling, port selection and inland transportation costs.
The Authority therefore maintained that attributing the recent increase in cement prices in Ghana entirely to Tema Port congestion does not provide a complete picture of the challenges affecting the cement and construction industry.
The development comes amid continued public concern over the cost of building materials and the impact of cement price increases on construction projects, housing costs and consumers across Ghana.
Source: newsthemegh.com