The planned increase in cement prices has been put on hold following an engagement between the Ministers for Transport and Trade and Agribusiness, the Ghana Ports and Harbours Authority (GPHA), and cement manufacturers.
The meeting was held amid growing concerns from cement producers over delays in cargo clearance at Ghana’s ports and the resulting accumulation of demurrage charges.
Cement manufacturers had raised concerns that continued delays at the ports were increasing their operational costs and could eventually compel them to raise cement prices, a move that could further burden consumers and the construction sector.
Prior to meeting the manufacturers, the two ministers toured the Tema Port under the leadership of the Director-General of the Ghana Ports and Harbours Authority, Major General Paul Seidu Tanye-Kulono.
The visit was aimed at giving the ministers a first-hand assessment of the congestion and other challenges affecting the smooth clearance of goods at the port.
Port congestion has become a major concern for importers, businesses and other stakeholders, as prolonged delays continue to result in additional costs.
Cement manufacturers are among those affected, with the industry indicating that delays in clearing imported goods are contributing significantly to rising demurrage charges.
Demurrage refers to fees imposed when containers or imported goods remain at a port beyond the period permitted by shipping lines or port authorities.
According to the manufacturers, the growing demurrage costs are putting additional pressure on their operations and could eventually translate into higher cement prices.
The discussions between government officials, the GPHA and cement producers focused on the causes of the congestion, the accumulation of demurrage charges and measures to accelerate cargo clearance at the ports.
The Transport Minister said government was concerned about the effect of the delays on businesses and was working with relevant stakeholders to find a solution.
“We need to find a lasting solution to the challenges at the ports and ensure that businesses are not unnecessarily burdened with additional costs.”
The Minister for Trade and Agribusiness also stressed the importance of resolving the challenges at the ports to prevent increased operational costs from being transferred to consumers.
“Our objective is to protect businesses and consumers while ensuring that the port operates efficiently.”
For cement producers, the immediate priority is to prevent further increases in costs resulting from delays in clearing goods.
Any significant rise in cement prices could have broader implications for Ghana’s construction industry, where cement remains a key building material.
Developers, contractors and individuals undertaking construction projects are already facing high building costs, and a further increase in cement prices could make construction even more expensive.
The suspension of the planned price increase therefore offers temporary relief to consumers as government and industry players work towards resolving the port congestion and related challenges.
The Director-General of the Ghana Ports and Harbours Authority, Major General Paul Seidu Tanye-Kulono, assured the public that steps were being taken to ease congestion at the port.
He said the authority was working towards decongesting the port before the end of October.
“Measures have been put in place to decongest the port, and we are confident that the situation will improve before the end of October.”
The assurance will be closely monitored by importers, manufacturers and other businesses that rely on the timely clearance of goods from the ports.
For now, the planned cement price increase remains suspended as government engages industry stakeholders to tackle congestion, reduce demurrage charges and improve cargo clearance.
The effectiveness of these measures could determine whether cement prices remain stable in the coming months.
By: Prince Martey-Sogar