–Describes The Deal As Beneficial For The Economy
The National Civil Society Union of Liberia has commended the government, through the National Port Authority (NPA), for successfully renegotiating its Cargo Tracking Note (CTN) agreement with Global Tracking and Maritime Solution (GTMS) Liberia Incorporated, securing more reasonable and favorable terms for Liberia and the reduction of fees for port users.
The initiative, announced on Tuesday, March 11, is in fulfilment of one of President Joseph Boakai’s Unity Party (UP) key campaign promises made during the 2023 presidential election: to enhance trade facilitation and support local businesses.
Also, during the 2023 campaign, Boakai and team vowed to alleviate the high cost of shipment of containers imposed by CTN as a result of a deal with the past regime of former President George Weah, led by then-former NPA Managing Director, now Senator Bill Twehway.
The union maintained that the CTN is a crucial document that provides detailed information about the movement of goods in and out of Liberia, ensuring compliance with international shipping standards, but the previous agreement with GTMS had drawn criticism from varied stakeholders.
According to the National Civil Society Union, local business owners, including private citizens, have all argued over the years that the terms and conditions were unfavorable and placed an undue financial burden on Liberian importers and exporters, which they described as ”devilish”.
The union mentioned that the landmark deal was renegotiated by NPA Managing Director, Sekou Hussein Dukuly, with huge technical support from LRA Commissioner General, Dorbor Jallah, Finance Minister, Augustine Ngafuan and Justice Minister, Cllr. Oswald Tweh.
According to the union, the renegotiated CTN agreement has now brought about key changes that will benefit the country’s economy and port users, putting an end to a long-time issue that has greatly affected the country’s local businesses.
The Civil Society Union noted that one benefit from the negotiation is an increment in government revenue share, which will boost Liberia’s revenue share from a mere 2% to 40% for the first five years, with the potential to increase to 45% in the following five years, marking a significant step in increasing the country’s earnings from port activities.
Also, the renegotiation has seen the shipping fees for import and export containers significantly reduced from previous fees, ranging from US$150 to US$300 depending on container size.
The new fee now set for a 20-foot import container is US$95 down from over US$150, and exports are priced at US$15, while the cost for a 40-foot import container is set at US$190, while exports will cost US$30, as Bulk import/export fees are now US$0.85 per metric ton for imports and US$0.36 for exports.
On the involvement of the Liberia Revenue Authority (LRA), the LRA is now directly involved in the CTN agreement, ensuring that the country’s revenue collection and trade facilitation functions are safeguarded.
The union maintained that these reductions would impact the reduction in prices, as the collaboration is expected to further boost Liberia’s economic progress with government now having a share in every revenue generated.
It disclosed that the agreement includes provisions for periodic reviews, with the first evaluation scheduled after five years, ensuring the deal remains aligned with the country’s evolving needs and international standards.
The revised CTN agreement is expected to take effect for ten years, providing a stable framework for Liberia’s shipping sector while allowing all necessary adjustments through periodic reviews.
Meanwhile, the National Civil Society Union of Liberia has described the renegotiation of the CTN agreement as a major shift in Liberia’s approach to port operations, offering a fairer pricing structure for Liberian local businesses and a more significant share of revenue for the government.
The union said the deal will further strengthen the role of the Liberia Revenue Authority (LRA) and ensure that Liberia’s economic progress and revenue generation through transparency and accountability are prioritized in the coming years.
As the government moves forward with the implementation of the new CTN agreement, the National Civil Society Union of Liberia has called for collective efforts for a new era for Liberian businesses while appealing to critics of the deal to desist on grounds that the new CTN deal is the best deal for the country.
It however commended GTMS management for efforts to adhere to government’s desire and love for Liberia’s advancement.