The crisis at Liberia's Freeport of Monrovia is evident, with cargo ships waiting offshore for weeks and cargo being diverted to neighboring ports. Liberian traders are feeling the pinch, with goods ordered from China taking up to seven months to arrive. The delay is costing them dearly, with borrowed and invested money stuck in containers somewhere between Asia and Monrovia. This situation has prompted about 1,500 Liberian businesswomen and importers to march to the Capitol Building to demand action.
A 2017 World Bank study had warned that West Africa's container traffic would nearly triple by 2025, and existing ports would not be able to cope. The study recommended that countries expand terminals at existing ports and develop new ones. While Côte d'Ivoire, Sierra Leone, Benin, and Senegal heeded the warning and invested in new port infrastructure, Liberia did not add any new container terminal. Côte d'Ivoire opened a second container terminal at Abidjan in 2022, Sierra Leone completed a quay extension in Freetown in 2018, Benin finished the first phase of its Cotonou port expansion in 2026, and Senegal is building a deep-water port at Ndayane, due for completion in 2028.
Liberia's major port reform came in 2010, when the government handed the Freeport's container operations to APM Terminals, part of Denmark's Maersk group, under a 25-year concession. The company rebuilt a quay, paved a container yard, and installed new gates. However, the work did not prepare the port for the next decade of growth. In the nine years since the World Bank's warning, Liberia has added no new container terminal. Talks with Morocco's port operator Marsa Maroc have been slow, with a memorandum of understanding signed in 2024 and a contract to manage two jetties following in 2026.
The National Port Authority (NPA) has acknowledged that the Freeport cannot keep pace with the size and number of ships now calling. Yard space is full, and shipping lines are passing on the costs. French carrier CMA CGM has added a congestion surcharge of €250 per dry container and €600 per refrigerated container on Monrovia-bound cargo from Northern Europe. Those charges will be passed on to Liberian consumers through market prices. Some Liberia-bound vessels spend more than 30 days at sea, with their cargo routed through ports in Côte d'Ivoire and Ghana while waiting for space in Monrovia.
The crisis has prompted APM Terminals to announce emergency measures to clear the backlog. The company also announced that Maersk will make Monrovia the first port of call on one of its West Africa services from January 2027. The House of Representatives has summoned the port authority, the terminal operator, and shipping agents to explain the delays. A fair accounting of the situation reveals that new berths alone will not end the crisis, as part of the delay comes from congestion at regional transshipment hubs.
To address the crisis, several decisive actions are needed. The government needs to sign and publish the long-promised dredging contract, with a firm completion date. The proposed terminal concession with Marsa Maroc needs to be sent to the Legislature for open and timely review. The review of APM's concession needs to be tied to binding commitments on new yard space and berths. Finally, inland container depots need to be opened, and enforceable clearance timelines need to be set for every agency in the chain.
The situation in Liberia highlights the importance of investing in port infrastructure to keep pace with growing demand. While neighboring countries have expanded their port capacity, Liberia has failed to do so, resulting in significant delays and costs. The government and port operators need to work together to address the crisis and ensure that Liberia's ports can handle the growing volume of trade. The cost of inaction is too high, and decisive action is needed to prevent further economic losses.
Key points
- Liberia's failure to expand its port capacity has resulted in significant delays and costs, with cargo ships waiting offshore for weeks and cargo being diverted to neighboring ports.
- Neighboring countries, including Côte d'Ivoire, Sierra Leone, Benin, and Senegal, have invested in new port infrastructure, while Liberia has not added any new container terminal since 2010.
- To address the crisis, the government needs to take decisive action, including signing a dredging contract, reviewing the proposed terminal concession with Marsa Maroc, and investing in new yard space and berths.
