The APM Terminals and the NPA has renegotiated the Marine Services Agreement and the Global Tracking and Maritime Solutions (GTMS) contract.
GTMS provides real-time cargo tracking and security verification services for shipments entering and exiting the Freeport of Monrovia.
Under President Joseph Boakai’s directive and with technical support from the Ministry of Finance, Liberia Revenue Authority, and Ministry of Justice; these revisions have led to increased government revenue, reduced costs for port users, and a structured plan for Liberians to eventually take over the provision of these services.
The revised GTMS contract increased the government’s share of revenue from 3% to 40% in the first five years and 45% thereafter and also mandates that GTMS pay all applicable taxes, including an estimated 20% corporate tax.
Meanwhile, costs for port users have decreased, with the GTMS service fee for importing a 45ft container dropping from $236.25 to $213.75 and a 20ft container from $130 to $95.
These services help enforce international trade regulations and minimize risks related to smuggling and fraud, ensuring more transparency and efficiency in port operations.
The Marine Services Agreement was renegotiated to include an indigenization clause that mandates the training and integration of Liberians into operations, with the goal of achieving full local control within five years.
The government’s royalty in the agreement was also increased to 20% from 15%, and as part of the agreement NPA will benefit from logistical and technical support for the full operationalization of a navigational aid system that ensures safe passage for vessels coming to and leaving the port of Monrovia.
The APM Terminals has agreed to review its 25-year concession agreement with Liberia, marking a major shift after years of failed attempts by previous administrations.
The agreement, signed in October 2010 and set to expire in 2035, contains no formal review clause; an omission inconsistent with international best practices and other concession agreements in Liberia.
Efforts to renegotiate the deal, including a push in 2021 under former President George Weah, were unsuccessful.
The breakthrough this month, comes after months of discussions between the management of the National Port Authority (NPA), led by Managing Director Sekou H. Dukuly, and APM Terminals Liberia, headed by Clay Crain.
Their negotiations culminated in a meeting with President Joseph Boakai, where President Boakai pushed for and APM Terminals agreed to the review.
Experts describe the development as a significant achievement, as the country seeks to realign long-term concessions signed under different economic conditions with Liberia’s present and future needs.
“Politically, the review of APM Terminals is good for President Boakai because it was a key campaign promise, but economically, it is even more important as it will align the concession with current trade and socio-economic realities,” said Ambulah Mamey, a practitioner in International Development.
Following APM Terminals’ commitment to the review, President Boakai constituted the APMT Joint Review committee chaired by the Managing Director of the NPA and Co-chair by the Managing Director of the APMT (Liberia).
Members of the committee include the Ministry of Justice, National Investment Commission of Liberia, Morley P. Kamara, Economic Advisor to President Boakai, and representative from APMT Headquarters, Morley P. Kamara, Economic Advisor to President Boakai, Last week the committee met to finalize the Terms of Reference for the renegotiation process and to jumpstart the review process.
APM Terminals’ Role in Liberia: APM Terminals, a subsidiary of Danish shipping giant Maersk, operates the container terminal at the Freeport of Monrovia.
Under its concession, the company manages cargo handling, terminal operations, and port logistics, playing a critical role in Liberia’s trade infrastructure.
Since 2010, APM Terminals has invested in port modernization, including container handling equipment, terminal expansion, and digital automation, improving efficiency and government revenue collection.
While these investments have enhanced port operations and trade facilitation, concerns have been raised over high service costs, revenue-sharing terms, and employment opportunities for Liberians.
One of the most vocal critics of the concession is Vice President Jeremiah Koung, who, while serving as a senator, criticized the agreement for granting extensive rights to APM Terminals.
“The law gives too much leverage to APM Terminals.
It allows them to change tariffs at any time, and worst of all, this concession cannot be amended until after 25 years. If there is a way to amend that law, let’s do it now,” Koung said at the time.
In December 2020, the National Customs Brokers Association of Liberia (NCBAL) also raised concerns about operational inefficiencies, calling for government intervention to address “perpetual delays in clearing and processing containers at the port.”
These issues are expected to be central to the upcoming review, according to NPA’s Managing Director.
“President Boakai’s mandate to the NPA is clear: review concessions at the port to ensure Liberia gets its fair share. So far, we are successfully delivering on this mandate, driven by our unwavering commitment, the technical support of other government ministries and agencies, and the cooperation of the private-sector partners.”
ArcelorMittal Liberia Concession Under Review: The Boakai administration’s focus on reviewing concession agreements extends beyond the Freeport of Monrovia.
The concession agreement for ArcelorMittal Liberia (AML), the country’s largest iron ore mining operator, is under review.
AML operates mines in Nimba and transports iron ore via rail and port infrastructures that are critical to its operations.
While AML pays some fees for its use of port infrastructure, NPA Managing Director Dukuly argues that Liberia has not received its fair share.
“We will work with other stakeholders to ensure the new agreement between Liberia and AML explicitly outlines AML’s obligations to the Port Authority for the use of port infrastructure and marine service,” he said.
While these renegotiations are largely technical and policy-driven, they reflect a broader effort by the Boakai administration to reexamine long-term agreements that have shaped Liberia’s economic landscape.
The recent successes at the NPA set a precedent for future concession reviews, as the government seeks to ensure a fairer distribution of economic benefits from national assets.
