Senator Amara M. Konneh of Gbarpolu County has written to the Liberian Senate, urging them to summon port operators and government agencies to address the issue of protracted delays of containers, high transaction costs, and their impact on businesses and consumer prices. In his letter, Konneh cited complaints from the business community, particularly small and medium-sized enterprises (SMEs), about the lengthy delays in the delivery of their goods. He stated that containers bound for Liberia now spend an average of over 30 days at sea before berthing in Monrovia.
The delays are attributed to a lack of yard space at the Freeport of Monrovia to hold more containers and the prolonged dredging of the port basin and channel, which prevents larger vessels from berthing. Konneh also pointed to the multiplicity of opaque transaction costs and fees charged by various bodies, including APM Terminals, MEDTECH Scientific Limited, and Global Tracking and Maritime Solutions (GTMS). These charges are passed on to consumers, contributing to high prices despite the country's economic stabilization program.
According to Konneh, the problems at the port are potentially a major driver of sticky prices, risking the gains of the reform program. He argued that if the issues are not fixed urgently, they will continue to undermine private sector competitiveness, discourage investment, and erode the purchasing power of ordinary Liberians. The Senator requested that seven bodies, including the National Port Authority (NPA), APM Terminals Liberia, and the Liberia Revenue Authority (LRA), appear before the Senate to respond to the allegations and present solutions.
Konneh's concerns are shared by many Liberians, who are pressing for changes to how the Freeport is run. They are demanding a review of the APM Terminals concession, negotiation of a proposed US$230 million concession from Moroccan port operator Marsa Maroc, and dredging obligations written into the financial model of both concessions. The lack of dredging is one of the causes of the delays, and regular dredging is essential to ensure the port basin and channel are navigable.
The impact of the delays and high transaction costs is significant, affecting not only businesses but also ordinary Liberians. The country's economy is import-dependent, and congestion at the main port affects every household. The complaints also have regional implications, as delays in Monrovia add pressure on West Africa's wider shipping network.
National Port Authority (NPA) Managing Director Sekou Dukuly responded to the concerns, stating that they are working on dredging and expansion. However, he did not provide a timeline or cost for the work. The NPA and other bodies have not publicly responded to the Senator's other concerns, including yard space, delays at sea, and port fees.
The Senate's response to Konneh's request is pending. The issue is crucial for Liberia's economy and has implications for the region. A resolution to the problems at the port could help reduce costs for businesses and consumers, improve competitiveness, and attract investment.
Key points
- Senator Amara Konneh urges the Senate to summon port operators and government agencies to address delays and high transaction costs.
- Delays at the Freeport of Monrovia are attributed to lack of yard space and prolonged dredging of the port basin and channel.
- The issues at the port affect not only Liberia's economy but also the regional shipping network.
