Transport and Trade ministers prevent increase in cement prices after meeting with stakeholders

The planned increase in cement prices has been suspended following an engagement between the government, cement manufacturers and the Ghana Ports and Harbours Authority (GPHA) over rising operational costs linked to congestion at the country’s ports.

The meeting involved the Ministers for Transport and Trade and Agribusiness, representatives of GPHA and cement manufacturers, who discussed mounting demurrage charges and delays in the clearance of imported goods.

Cement producers had raised concerns that prolonged delays at the ports were increasing their operational costs and could eventually force them to pass the additional expenses on to consumers through higher cement prices.

The engagement was aimed at identifying the causes of congestion at the ports and finding measures to speed up cargo clearance while reducing the financial burden on businesses.

Prior to the meeting with the cement manufacturers, the two ministers toured the Tema Port, where they were led by the Director-General of GPHA, Major General Paul Seidu Tanye-Kulono.

The tour provided the ministers with a first-hand assessment of the congestion and other challenges affecting the timely clearance of goods.

The government has expressed concern about the impact of the delays on businesses, importers and consumers, particularly as prolonged cargo clearance can result in additional costs.

Cement manufacturers have identified demurrage charges as one of the major financial pressures resulting from the delays at the ports.

Demurrage refers to charges imposed when imported goods or containers remain at a port beyond the period permitted by shipping lines or port operators.

According to the manufacturers, the accumulation of these charges is significantly increasing their operational expenses and putting pressure on the prices of cement.

The situation has raised concerns within the construction industry because any increase in cement prices could further increase the cost of building projects across the country.

The Transport Minister said government was committed to finding a lasting solution to the challenges at Ghana’s ports and preventing businesses from being unnecessarily burdened by additional costs.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 need to address the challenges to prevent rising port-related expenses from being transferred to consumers.Our objective is to protect businesses and consumers while ensuring that the port operates efficiently.”

The government’s engagement with the manufacturers is therefore expected to provide temporary relief to consumers while efforts continue to address the underlying causes of the congestion.

Major General Paul Seidu Tanye-Kulono assured the public that measures were being implemented to reduce congestion at the port.

He said GPHA was working towards significantly improving the situation 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 whose operations depend on the efficient movement and clearance of goods through Ghana’s ports.

For cement manufacturers, continued delays at the ports could translate into higher production, importation and distribution costs.

Any significant increase in cement prices could have wider implications for Ghana’s construction industry, where cement remains a key building material.

Developers, contractors and individual home builders are already facing elevated construction costs, meaning further increases in cement prices could raise the overall cost of housing and infrastructure projects.

The suspension of the planned price increase therefore offers temporary relief to consumers while government and industry stakeholders work to reduce congestion, limit demurrage charges and improve cargo clearance.

The success of the measures being implemented at the ports, particularly the October decongestion target, could be crucial in determining whether cement prices remain stable in the coming months.