BUSINESS

Cement Price Increase Saga: Government Intervenes

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By: Sebbie, Edward Graham

Additional berth has been added to the existing ones to expedite offloading of clinker at the Tema sea port.

The decision became necessary following an intended 12 Cedis increase in cement prices by cement producers due to growing operational costs they incur as a result of delays in berthing of clinker carrier ships. Producers of the building material have raised grave concerns over huge demurrage charges incurred due to delays of ships at anchorage as a result of inadequate berths to dock.

To arrest the situation, the ministers of Transport and Trade and Agri-Business together with the GRA hierachy met with the DG of GPHA to find a solution to the problem.

Joseph Bukari Nikpen, the Transport Minister after a closed-door meeting disclosed that additional berth has been added to the existing three to clear the backlock of clinker loaded ships on anchorage as a short-term measure to deal with the situation while pursuing a long term solution. Mr. Nikpen also revealed that dredging works on the bulk jetty has completed contrary to speculations that the ongoing work is responsible for the development.

The Minister kster for Trade and Agri-Business, Elizabeth Fosu Agyare, tells the media that since the expansion of the Tema Port by the Mahama’s first administration, no major expansion work has berm done as volumes of imports increase hence the current situation.

She therefore believes that the emergency step taken to arrest the situation yields the exected result and said “I have always said that even if they increase the price of cement, it cannot make for their extra operational costs.”

Landlords, tenants and the Ghananaian general public are therefore expectant that cement producers will rescind the decision to adjust cement prices upward following the successful meeting.

Meanwhile, hairman for the Chumber of Cement Producers, Bishop Dawson Amoah, commended the two ministers and the government as a whole for the swift intervention saying “We are not happy to increase cement prices because we feel for Ghanaian, but the situation demands.”

Bishop Amoah was therefore hopeful that measures instituted are helpful enough to fast track berthing and offloading of clinker to avert the current situation of high demurrages, a cost which will unfortunately be passed onto consumers.

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