GRi Business, Economics & Finance 13 – 03 - 2002

Freight Forwarders call for abolition of double stevedore charges

Ghana needs a national economic plan-- panel

Aluworks to cut down on exports

Cement price shoots up in Wa

Eighth International Trade Fair ends

 

 

Freight Forwarders call for abolition of double stevedore charges

 

Tema (Greater Accra) 13 March 2002- The Ghana Institute for Freight Forwarders (GIFF) has called for the abolition of double stevedore charges on vehicles stuffed with goods since this amounted to undue exploitation of shippers.

 

In a petition to the Director General of the Ghana Ports and Harbours Authority (GPHA), it said these charges were not legitimate in the shipping industry and unnecessarily increases the cost of doing business at Ghana's ports.

 

The petition, signed by Mr Frank Sarpong, National President of GIFF, said anytime an importer shipped a vehicle and put in anything apart from the normal accessories, the shipping lines charged extra 52.64 dollars for saloon cars, 110 dollars for vans and 165 dollars for utility vehicles.

 

He said clients have been saddled with huge bills whenever they took advantage of spaces in their vehicles during shipments, explaining that it was not prudent for a shipper to leave any space in his vehicle and book for space in another container at an extra cost.

 

Mr Sarpong said the shipping lines insist they were collecting what the GPHA charges them, he, however, pointed out that on arrival at the port, it was the vehicles, which was handled.  The goods were not handled separately.

 

On the safety of goods, he said, any importer shipping to any part of the world knew the risks involved.  Those who put other cargo in vehicles go to the extent of welding their boot and doors to prevent pilfering and where they fail, they suffer the consequences of losing their property.

 

GIFF referred to clause 10 of the General Terms and Conditions of the GPHA Tariff book of March 1997, which states among other things that the Authority shall not be liable for losses or damages to any cargo whatsoever.

 

The GPHA had, therefore, never paid any claim as a result of cargo getting missing from vehicles during stevedoring, not even when vehicle parts were stolen. Mr Sarpong said in respect of un-manifested goods, the Customs, Excise and Preventive Service (CEPS) had its own way of dealing with the situation by asking them to put in amendments after which it imposed penalties.

 

He said if there was no risk of damage or loss to the GPHA for cargo put in vehicles and the GPHA did not handle such cargo directly, then there was no justification for the shipper to pay extra cost when she did not pay extra freight to the carrier. GIFF, therefore, appealed to the GPHA to deal with the issue urgently since shippers were being unduly exploited.

GRi…/

 

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Ghana needs a national economic plan-- panel

 

Cape Coast (Central Region) 13 March 2002- Panellists at a regional forum to educate the public on the 2002 national budget on Tuesday called on the government as a matter of urgency to draw up a national economic plan to deal with economic issues pragmatically to help accelerate development.

 

They contended that such a document should go through parliamentary proceedings just like the constitution for it to be binding on all prospective governments irrespective of their political affiliations. The forum, which was organised by the Integrated Social Development Centre (ISODEC) was attended by civil society organisations in the Central Region.

 

This, they said, would help the country to deal with issues systematically, in order to achieve results since economic issues should not be dealt with, on ad hoc basis, "but also be seen through objective lenses". They also observed that the situation where economic documents are compiled only for the interest of a particular government and discarded when another government take over does not augur well for the rapid development of the country.

 

" What we need is a national plan and not a document that will satisfy the interest of a certain group", they emphasised. They also called for the diversification of the economy and the intensification of industries as a measure to help boost the economy.

 

At the forum, Dr Enu-Kwesi senior lecturer at the University of Cape Coast (UCC), said the West African Anglophone zone is making efforts to have a single currency by 2005.

 

He said one of the conditions for the affected countries set up by the West African Monetary Union was to have their inflation rate at not more than 5 percent, a target that Ghana would soon meet.

 

Dr Enu-Kwesi pointed out that the country could also meet its budgetary targets if Ghanaians work hard to increase productivity, cut bureaucratic procedures, checked indiscipline, stabilise the exchange rate and reduced corruption.

 

Mr Paul Kojo Acquah, a lecturer at the Department of Economics at the UCC, on his part was however, unhappy about the incentive packages for teachers in the rural areas in the budget, and called for better packages since they were disadvantaged. He also mentioned the meagre SSNIT loan to students, which he said, was inadequate but commended the government for making the sector its major priority.

 

Dr. Isaac Kwaku Acheampong, who presided, said the economic growth of the country has not gone beyond 5 per cent since the introduction of the Economic Recovery Programme in 1982. The 4.5 target set by the government is therefore, not pragmatic enough, he said.

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Aluworks to cut down on exports

 

Tema (Greater Accra) 13 March 2002- Aluworks Ghana Limited, an aluminium rolling mill, would cut down on exports and give priority to local industries following the expected reduction in raw material supply from the Volta Aluminium Company (VALCO).           

 

Aluworks, which buys aluminium ingots from VALCO and processes into semi-finished products like aluminium coils, flat sheets and circles, exported 40 percent of its products last year earning 11.7 million dollars in revenue.

 

Mr John Nyako, Managing Director of Aluworks, told the GNA that the company, which takes 10 percent of VALCO production, representing 20,000 metric tonnes, would have its supply reduced by VALCO, which has cut its production by 25 percent following the energy crisis.

 

He said Aluworks is in the process of talking to VALCO to see how best to minimise the effects on Ghanaian industries and West African customers, but it would have to cut down on export to ensure that the local market does not suffer unduly.

 

Local household utensils producers consume about 5,000 metric tonnes from Aluworks and export 30 percent, housing development account for 8,000 metric tonnes and 500 metric tonnes goes to the informal sector.         

 

Mr Nyako said the export business is good but explained that the local aluminium industries have been nurtured from the beginning by Aluworks and their continued survival is important for the national economy since they employ productive labour.

 

"We have extremely good relationships with VALCO, which has been a good supplier for many years and in situations like this, we put our heads together to see how best we can meet the needs of the industries we serve", Mr Nyako said.

 

VALCO, on March 2, this year, shut one of its four potlines in view of power crisis to enable the VRA save 75 megawatts of electricity to provide spinning reserves and repair faults without resorting to power shedding.

 

The energy crisis comes at a time that Aluworks was carrying out expansion and upgrading works to increase its annual production by 50 per cent to 30,000 metric tonnes, but the Volta River Authority (VRA) has not requested the company to cut down its power consumption. 

 

Mr Nyako said Aluworks would, however, not cut down on its 430 workforce, adding that in 1998/99, when a similar energy problem emerged, the company was required to put in place power efficiency measures and stay within a certain quota.

 

He described the current energy crisis as "a passing situation" but a difficult period for the entire nation, and said the future could only be bright if the necessary investments are made in the energy sector.

 

Mr Nyako pointed out that it would be wrong to see the energy problem as a VALCO problem.  It is a national problem, which must be solved, stating that, VALCO's inputs into the national economy was immense and must, therefore, be supported.

 

He said the aluminium industry in Ghana feeds the West African regional market with raw materials for tertiary industries and these were some of the investments, which could place Ghana at commanding heights in the sub-region if properly supported. For example, Nigeria has tried for so many years to establish an aluminium smelter, but has not been able to complete it.

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Cement price shoots up in Wa

 

Wa (Upper West) 13 March 2002- The price of cement shot up from 36,000 cedis to 39,000 cedis per bag in Wa at the weekend, fuelling allegations by some people that the increase was an attempt by the dealers to discredit the NPP administration.

 

Developers who went to buy the commodity were shocked when they were told that the price had risen by 3,000 cedis. Customers the Ghana News Agency interviewed said this was the first time in the last three years that the price had risen by such a wide margin.

 

Mr Sulemani Yahaya, a mechanic, said the price per bag of cement had been recording a yearly average increase of 1,000 cedis in the town even under the

NDC government when inflation figures were very high.

 

"We do not understand what necessitated the recent increase by the cement dealers.  We know where most of them belong and may want to give the government a negative tag." Most customers the GNA spoke to at the cement shops expressed similar sentiments adding that if GHACEM had increased the price, it should be made public.

 

However, a spokesman for the cement dealers, Mr Yunusah Sahanun attributed the sharp rise to an increase in the factory price by GHACEM - from 28,150.65 cedis to 30,290.09 cedis per bag.

 

Mr Sahanun said they had adjusted their prices to reflect the new price coupled with the difficulties they encounter in hiring cargo trucks to cart the cement from Tema to Wa.

 

He said because of the poor condition of the Bole-Bamboi portion of the Wa-Kumasi  road, drivers are often reluctant to ply the road. "When you are lucky to get a truck to convey your consignment, you are charged 6,000 cedis per bag."

 

He said some drivers simply say "no" on the mention of Wa as the destination and prefer to ply other routes like Tamale and Bolgatanga that have tarred roads. The spokesman said some articulated truck drivers have had their vehicles taken away by their owners after conveying cement to Wa. He appealed to the government to heed the call of the people of the Upper West to tar the Bole-Bamboi road.

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Eighth International Trade Fair ends

 

Accra (Greater Accra) 13 March 2002- The Eighth Ghana International Trade Fair ended in Accra on Monday with a recorded visitor turnover of 400,000 people and sales close to 10 billion cedis.

 

The 12-day fair, organised by the Ghana Trade Fair Company Limited (GTFC), under the theme, "achieving economic growth through positive partnership between the public and private sector: the way forward" attracted 700 local exhibitors and 56 foreign.

 

It afforded exhibitors the chance to showcase their goods and services, explore new markets, assess market and competitive trends and re-establish contact with old clients.

 

Addressing the closing ceremony, Mr Akwasi Osei Adjei, Deputy Minister of Trade and Industry, stressed government's commitment to move the private sector forward and said government would use fairs to promote export and investment.

 

He said fairs provided an opportunity for the creation of regional blocks for economic integration and invited Ghanaian businessmen and investors to fully participate in the All Africa Trade Fair that comes off in Cairo, in April.

 

Miss Esther Dzifa Ofori, Chief Executive of the fair company, described the fair as impressive and asked exhibitors to use the experiences acquired to break new grounds in the businesses and enlarge their markets. She said the GTFC had decided to extend the period of the fair for five more days for willing exhibitors to do business at no extra cost.

 

Ms Ofori said the company was working on the air conditioned hall and added that the hall would be completed to create additional 352 spaces before the next international fair which comes off in 2004.

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