Tema Port Crisis Could Drive Up Consumer Prices, FABAG Warns

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Fabag
Food and Beverages Association of Ghana (FABAG)

The Food and Beverages Association of Ghana (FABAG) has warned that operational challenges at the Tema Port have deteriorated to their worst level in over 23 years, contradicting port management assurances that earlier problems had been resolved.

In a statement issued on January 5, FABAG reported that vessel cargo discharge rates have collapsed to approximately 200 metric tonnes per day, down from a previous minimum of 2,000 tonnes, representing a 90 percent decline in operational efficiency. The association warned that escalating costs will ultimately be transferred to Ghanaian consumers.

Three vessels currently discharging bulk and bagged goods are already facing substantial demurrage charges, costs that will inevitably be passed on to importers, manufacturers and ultimately consumers, FABAG stated. The delays affect essential commodities including rice and sugar.

The crisis stems from a labour dispute involving unskilled workers who traditionally handle physical offloading, who have been on strike for some time following disagreements with port management over compensation rates. Although port authorities engaged temporary workers to mitigate the impact, FABAG described the intervention as insufficient.

FABAG noted that the introduction of a 24-hour shift system has failed to improve productivity, citing inadequate staffing, low worker morale, and unresolved labour grievances as contributing factors. The association reported unprecedented vessel turnaround delays, with ships recording prolonged berthing periods, slow cargo evacuation and inconsistent loading schedules.

However, Tema Port management has dismissed FABAG’s claims as inaccurate and not reflective of current operational realities, assuring port users, investors and the business community that operations remain stable, efficient and uninterrupted.

In a December 31 statement, the Ghana Ports and Harbours Authority (GPHA) explained that about a month ago, there was a temporary disagreement involving a section of the dock labour force over the introduction of a 24-hour shift system designed to align port operations with the government’s 24-Hour Economy policy. Under the arrangement, dock labourers work structured eight hour shifts on a rotational basis, allowing three workers to share one job over a 24 hour period.

FABAG expressed concern about what it described as a growing disconnect between official statements and conditions on the ground. The association warned that minimising the situation does not solve the problem but rather worsens uncertainty and erodes confidence in port operations.

The association also raised alarm about potential revenue losses if the crisis persists. FABAG warned that if the situation is not quickly and effectively resolved, some importers may be forced to divert their goods to the Lome Port in Togo, which could encourage attempts to smuggle goods back into the country, potentially leading to massive losses in government revenue and undermining trade regulations.

FABAG stressed that Tema Port is a critical national asset with direct consequences for inflation, food security, the competitiveness of local manufacturers and overall economic growth. The association called for urgent and transparent engagement between GPHA, port management, labour unions and key user groups, alongside independent verification of port performance data including vessel turnaround and cargo dwell times.

The association emphasized it remains committed to constructive engagement but will continue speaking out when operational failures threaten the survival of local businesses and the welfare of consumers.

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