Accra, Ghana – The Exim Frozen Foods Association of Ghana (EFFAG) has strongly urged the Ministry of Transport to reject any proposal for the reintroduction of the Cargo Tracking Note (CTN), also known as the Smart Port Note (SPN). EFFAG argues that this system would impose substantial additional costs on Ghanaian businesses and ultimately consumers, potentially impacting trade facilitation efforts.
Concerns Over Unfamiliar Advocacy and Potential Costs
EFFAG’s opposition comes in response to a reported campaign by a group identified as the Concerned Traders Association of Ghana, which has been advocating for the return of the CTN/SPN regime. In a statement signed by its Executive Secretary, Michael Obiri-Adjei, EFFAG expressed skepticism about this group, noting that it is unfamiliar to the broader trading community.
The association highlighted that the CTN/SPN system has faced consistent opposition from a wide array of stakeholders, including importers, exporters, freight forwarders, logistics operators, and civil society groups, for over a decade. EFFAG contends that the proposed system would introduce new charges and administrative burdens without offering demonstrable improvements in cargo clearance or overall trade facilitation.
Questioning System Purpose and Partnerships
EFFAG argues that the primary objective of the CTN/SPN appears to be the collection of shipping data for the Ghana Shippers’ Authority (GSA). The association believes this function should be financed through the GSA’s existing internally generated funds, rather than imposing additional fees on traders.
Furthermore, EFFAG questioned the reported partnership between the GSA and the Inter-Ocean Maritime and Logistics Institute (IOMLI). The association views this arrangement as potentially inconsistent with the GSA’s mandate to safeguard the interests of shippers. EFFAG’s stance is that the CTN/SPN initiative is primarily designed as a revenue-generating mechanism, undermining its stated purpose as a trade facilitation tool.
Projected Economic Impact on Ghanaian Shippers
The economic implications of reintroducing the CTN/SPN system could be significant, with EFFAG estimating annual costs for Ghanaian shippers ranging between €187.2 million and €382.8 million. This projection is based on Ghana’s 2024 projected container traffic volume of 1.7 million Twenty-foot Equivalent Units (TEUs) and previously proposed fee structures.
It is important to note that EFFAG’s calculation specifically considers full-container-load cargo and excludes other categories, suggesting the total economic impact could be even higher. The association warned that these additional costs would inevitably be passed on to consumers, leading to increased prices for imported goods.
Concerns Over Bureaucracy and Duplication of Services
EFFAG raised concerns that the Smart Port Note system would duplicate functions already managed by existing digital platforms. These include the Integrated Customs Management System (ICUMS) and the Ghana Integrated Cargo Clearance System (GICCS).
The reintroduction of the CTN/SPN, according to EFFAG, risks adding unnecessary administrative layers to cargo clearance procedures. This could increase transaction costs and potentially create new avenues for delays in the logistics chain.
“The CTN/SPN does not solve any identifiable problem within Ghana’s port ecosystem,” the statement read. EFFAG cautioned that the proposal could reverse the progress made in modernizing trade and logistics operations in the country.
Inconsistency with International Trade Objectives
The association further argued that the proposed system runs counter to international trade facilitation objectives. This includes commitments made under the African Continental Free Trade Area (AfCFTA) and the World Trade Organization’s Trade Facilitation Agreement.
EFFAG warned that introducing additional clearance requirements could diminish Ghana’s competitiveness as a regional trade hub. This is particularly concerning when compared to the efficiency of neighboring ports in Togo and Côte d’Ivoire.
Call to Action for the Ministry of Transport
EFFAG has formally called on the Minister of Transport, Joseph Bukari Nikpe, to reject any attempts to revive the CTN/SPN system. Instead, the association urged the Ministry to concentrate on strengthening existing digital platforms and addressing the long-standing concerns voiced by traders.
Among its specific recommendations, EFFAG urged the government to resist pressure to reintroduce the CTN/SPN, support internal digitalization initiatives within the Ghana Shippers’ Authority, enforce measures to eliminate illegitimate port-related charges, and continue enhancing existing systems like ICUMS for improved cargo tracking and revenue assurance.
Focus on Existing Trade Challenges
The association encouraged all stakeholders to shift their focus toward addressing broader challenges within the trading sector. These include reducing port bottlenecks, eradicating unlawful charges, and enhancing overall operational efficiency across the trade and logistics industry.
EFFAG reiterated its willingness to collaborate with industry groups and policymakers on reforms that genuinely reduce costs and improve the ease of doing business in Ghana. However, the association remains firm in its opposition to the proposed reintroduction of the CTN/SPN system.
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