By Bill W. Cooper
The government, through the National Port Authority (NPA), has successfully renegotiated its Cargo Tracking Note (CTN) agreement with Global Tracking and Maritime Solution (GTMS) Liberia Incorporated, securing more reasonable and favorable terms for Liberia and the reduction of fees for port users.
The initiative, announced Tuesday, March 11, is in fulfilment of one of President Joseph Boakai’s Unity Party (UP) key campaign promises made during the 2023 presidential elections to enhance trade facilitation and support local businesses.
Also, during the 2023 campaign, Boakai and team vowed to alleviate the high cost of shipment of containers imposed by CTN as a result of a deal with the past regime of former President George Weah, led by then-former NPA Managing Director, now Senator Bill Twehway.
The CTN is a crucial document that provides detailed information about the movement of goods in and out of Liberia, ensuring compliance with international shipping standards, but the previous agreement with GTMS had drawn criticism from various stakeholders.
Local business owners, including private citizens, have all argued over the years that the terms were unfavourable and placed an undue financial burden on Liberian importers and exporters, something they at times described as ‘devilish.’
However, to address these concerns, the landmark deal was renegotiated by NPA, led by its MD, Sekou Hussein Dukuly, with huge technical support from LRA CG Dorbor Jallah, Finance Minister Augustine Kpehe Ngafuan and Justice Minister Cllr. Oswald Tweah.
According to the team, the renegotiated CTN agreement has now brought about key changes that will benefit the country’s economy and port users, putting to a long-time issue that has greatly affected the country’s local businesses.
One benefit from the negotiation is increase in government revenue share, as this new deal will boost Liberia’s revenue share from a mere 2% to 40% for the first five years, with the potential to increase to 45% in the following five years, marking a significant step in increasing the country’s earnings from port activities.
Also, reduction in shipping fees, this portion has seen the shipping fees for import and export containers significantly reduced from previous fees ranging from US$150 to US$300 depending on container size.
The new fee now set at a 20-foot import container is US$95,00 down from over US$150,00, and exports are priced at US$15.00, while the cost for a 40-foot import container is set at US$190,00, while exports will cost US$30.00, as Bulk import/export fees are now US$0.85 per metric ton for imports and US$0.36 for exports.
On the involvement of the Liberia Revenue Authority (LRA), they are now directly involved in the CTN agreement, ensuring that the country’s revenue collection and trade facilitation functions are safeguarded.
These reductions will impact the reduction in prices, as the collaboration is expected to further boost Liberia’s economic progress as the government is now having a share in every revenue generated.
For periodic reviews of the agreement, the agreement includes provisions for periodic reviews, with the first evaluation scheduled after five years, ensuring the deal remains aligned with the country’s evolving needs and international standards.
About the long-term agreement with flexibility, the revised CTN agreement will be in effect for ten years, providing a stable framework for Liberia’s shipping sector while allowing for necessary adjustments through periodic reviews.
Meanwhile, the renegotiation represents a major shift in Liberia’s approach to port operations, offering a fairer pricing structure for Liberian local businesses and a more significant share of revenue for the government.
The deal will further strengthen the role of the Liberia Revenue Authority and ensure that Liberia’s economic progress, and revenue generation through transparency and accountability are prioritized in the coming years.
As the government moves forward with the implementation of the new CTN agreement, stakeholders are certainly hopeful that this will mark the beginning of a new era for Liberian businesses.
And with the promise of reduced costs and improved efficiency in the country’s maritime industry, many are optimistic that the local economy will see a much-needed revival in the coming months and years.
