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Frozen Foods Association Rejects Return of Cargo Tracking System

The Exim Frozen Foods Association of Ghana (EFFAG) has called on the Ministry of Transport to resist any attempt to reintroduce the Cargo Tracking Note (CTN), also known as the Smart Port Note (SPN), warning that the system would impose significant additional costs on businesses and ultimately increase prices for consumers.

In a statement signed by its Executive Secretary, Mr Michael Obiri-Adjei, the association questioned recent calls by a group identified as the Concerned Traders Association of Ghana for the revival of the CTN/SPN regime.

EFFAG said the group is largely unknown within the broader trading community and expressed concern over its support for a policy that has faced strong opposition from importers, exporters, freight forwarders, logistics operators and civil society organisations for more than a decade.

The association argued that the CTN/SPN would introduce new charges and administrative obligations for traders without providing measurable improvements in cargo clearance processes or trade facilitation.

According to EFFAG, the primary objective of the proposed system is the collection of shipping data on behalf of the Ghana Shippers’ Authority (GSA), a function it believes should be financed through the authority’s existing internally generated funds rather than by imposing additional costs on importers and exporters.

The association also questioned the reported partnership between the GSA and the Inter-Ocean Maritime and Logistics Institute (IOMLI), suggesting that the arrangement appears inconsistent with the authority’s mandate to safeguard the interests of shippers.

EFFAG maintained that the CTN/SPN initiative appears to be driven more by revenue generation than by any genuine effort to improve trade efficiency.

The association estimated that the implementation of the CTN/SPN system could cost Ghanaian shippers between €187.2 million and €382.8 million annually.

It explained that the projection is based on Ghana’s 2024 container traffic volume of 1.7 million Twenty-Foot Equivalent Units (TEUs) and fee structures proposed during previous attempts to implement the system.

EFFAG noted that the estimate only covers full-container-load cargo and excludes other cargo categories, indicating that the actual economic burden could be significantly higher.

According to the association, these costs would inevitably be passed on to consumers through increased prices of imported goods and services.

EFFAG further argued that the Smart Port Note duplicates functions already carried out by existing digital platforms, including the Integrated Customs Management System (ICUMS) and the Ghana Integrated Cargo Clearance System (GICCS).

The association warned that reintroducing the system could create additional bureaucratic procedures, increase transaction costs and contribute to delays in cargo clearance.

“The CTN/SPN does not solve any identifiable problem within Ghana’s port ecosystem,” the statement noted, adding that its implementation could undermine progress made in modernising trade and logistics operations.

The association also contended that the proposed system runs counter to international trade facilitation principles, including commitments under the African Continental Free Trade Area (AfCFTA) and the World Trade Organisation’s Trade Facilitation Agreement.

It cautioned that additional clearance requirements could weaken Ghana’s competitiveness as a regional trade and logistics hub, particularly when compared with neighbouring ports in Togo and Côte d’Ivoire.

EFFAG urged the Minister of Transport, Mr Joseph Bukari Nikpe, to reject any proposal seeking to revive the CTN/SPN system and instead prioritise the strengthening of existing digital platforms while addressing longstanding concerns raised by industry stakeholders.

Among its recommendations, the association called on government to resist pressure to reintroduce the CTN/SPN, support ongoing digitalisation initiatives within the Ghana Shippers’ Authority, eliminate what it described as illegitimate port-related charges, and continue enhancing existing systems such as ICUMS for cargo tracking and revenue assurance.

The association concluded by urging policymakers and industry stakeholders to focus on broader challenges confronting traders, including reducing port congestion, eliminating unlawful charges and improving operational efficiency throughout the trade and logistics value chain.

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