{"id":17605,"date":"2025-03-24T15:02:49","date_gmt":"2025-03-24T14:02:49","guid":{"rendered":"https:\/\/maritimafrica.com\/en\/?p=17605"},"modified":"2025-03-24T15:02:49","modified_gmt":"2025-03-24T14:02:49","slug":"npa-renegotiates-ctn-and-marine-services-agreements-secures-review-for-apm-terminals-concession","status":"publish","type":"post","link":"https:\/\/maritimafrica.com\/en\/npa-renegotiates-ctn-and-marine-services-agreements-secures-review-for-apm-terminals-concession\/","title":{"rendered":"NPA Renegotiates CTN and Marine Services Agreements, Secures Review for APM Terminals Concession"},"content":{"rendered":"<p><a href=\"https:\/\/maritimafrica.com\/en\/wp-content\/uploads\/2025\/03\/485728073_122141522180521814_8668608360430502452_n.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-17606\" src=\"https:\/\/maritimafrica.com\/en\/wp-content\/uploads\/2025\/03\/485728073_122141522180521814_8668608360430502452_n.jpg\" alt=\"\" width=\"975\" height=\"975\" srcset=\"https:\/\/maritimafrica.com\/en\/wp-content\/uploads\/2025\/03\/485728073_122141522180521814_8668608360430502452_n.jpg 975w, https:\/\/maritimafrica.com\/en\/wp-content\/uploads\/2025\/03\/485728073_122141522180521814_8668608360430502452_n-300x300.jpg 300w, https:\/\/maritimafrica.com\/en\/wp-content\/uploads\/2025\/03\/485728073_122141522180521814_8668608360430502452_n-150x150.jpg 150w, https:\/\/maritimafrica.com\/en\/wp-content\/uploads\/2025\/03\/485728073_122141522180521814_8668608360430502452_n-768x768.jpg 768w\" sizes=\"auto, (max-width: 975px) 100vw, 975px\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">For the first time, APM Terminals has agreed to review its 25-year concession agreement with Liberia, marking a major shift after years of failed attempts by previous administrations. The agreement, signed in October 2010 and set to expire in 2035, contains no formal review clause\u2014an omission inconsistent with international best practices and other concession agreements in Liberia. Efforts to renegotiate the deal, including a push in 2021 under former President George Weah, were unsuccessful.<\/p>\n<p style=\"text-align: justify;\">The breakthrough this month comes after months of discussions between the management of the National Port Authority (NPA), led by Managing Director Sekou A. M Dukuly, and APM Terminals Liberia, headed by Clay Crain. Their negotiations culminated in a meeting with President Joseph Nyumah Boakai, where President Boakai pushed for and APM Terminals agreed to the review. Experts describe the development as a significant achievement, as the country seeks to realign long-term concessions signed under different economic conditions with Liberia\u2019s present and future needs.<\/p>\n<p style=\"text-align: justify;\">\u201cPolitically, the review of APM Terminals is good for President Boakai because it was a key campaign promise, but economically, it is even more important as it will align the concession with current trade and socio-economic realities,\u201d said Ambulah Mamey, a Practitioner in International Development.<\/p>\n<p style=\"text-align: justify;\">Following APM Terminals&#8217; commitment to the review, President Boakai constituted the APMT Joint Review committee chaired by the Managing Director of the NPA and Co-chair by the Managing Director of the APMT (Liberia). Members of the committee include the Ministry of Justice, National Investment Commission of Liberia, Morley P. Kamara, Economic Advisor to President Boakai, and representative from APMT Headquarters, Morley P. Kamara, Economic Advisor to President Boakai, Last week the committee met to finalize the Terms of Reference for the renegotiation process and to jumpstart the review process.<\/p>\n<p style=\"text-align: justify;\">APM Terminals&#8217; Role in Liberia: APM Terminals, a subsidiary of Danish shipping giant Maersk, operates the container terminal at the Freeport of Monrovia. Under its concession, the company manages cargo handling, terminal operations, and port logistics, playing a critical role in Liberia\u2019s trade infrastructure. Since 2010, APM Terminals has invested in port modernization, including container handling equipment, terminal expansion, and digital automation, improving efficiency and government revenue collection.<\/p>\n<p style=\"text-align: justify;\">While these investments have enhanced port operations and trade facilitation, concerns have been raised over high service costs, revenue-sharing terms, and employment opportunities for Liberians. One of the most vocal critics of the concession is Vice President Jeremiah Koung, who, while serving as a senator, criticized the agreement for granting extensive rights to APM Terminals.<\/p>\n<p style=\"text-align: justify;\">\u201cThe law gives too much leverage to APM Terminals. It allows them to change tariffs at any time, and worst of all, this concession cannot be amended until after 25 years. If there is a way to amend that law, let&#8217;s do it now,\u201d Koung said at the time.<\/p>\n<p style=\"text-align: justify;\">In December 2020, the National Customs Brokers Association of Liberia (NCBAL) also raised concerns about operational inefficiencies, calling for government intervention to address \u201cperpetual delays in clearing and processing containers at the port.\u201d These issues are expected to be central to the upcoming review, according to NPA\u2019s Managing Director.<\/p>\n<p style=\"text-align: justify;\">\u201cPresident Boakai\u2019s mandate to the NPA is clear: review concessions at the port to ensure Liberia gets its fair share. So far, we are successfully delivering on this mandate, driven by our unwavering commitment, the technical support of other government ministries and agencies, and the cooperation of the private-sector partners.&#8221;<\/p>\n<p style=\"text-align: justify;\">Renegotiating GMTS\/CTN and Marine Service Agreement at the Port: Beyond APM Terminals, the NPA\u2014under President Boakai\u2019s directive and with technical support from the Ministry of Finance, Liberia Revenue Authority, and Ministry of Justice\u2014has renegotiated the Marine Services Agreement and the Global Tracking and Maritime Solutions (GTMS) contract. These revisions have led to increased government revenue, reduced costs for port users, and a structured plan for Liberians to eventually take over the provision of these services.<\/p>\n<p style=\"text-align: justify;\">The revised GTMS contract increased the government\u2019s share of revenue from 3% to 40% in the first five years and 45% thereafter. It also mandates that GTMS pay all applicable taxes, including an estimated 20% corporate tax. Meanwhile, costs for port users have decreased, with the GTMS service fee for importing a 45ft container dropping from $236.25 to $213.75 and a 20ft container from $130.00 to $95.00. (insert the before and after price table for GTMs).<\/p>\n<p style=\"text-align: justify;\">GTMS provides real-time cargo tracking and security verification services for shipments entering and exiting the Freeport of Monrovia. These services help enforce international trade regulations and minimize risks related to smuggling and fraud, ensuring more transparency and efficiency in port operations.<\/p>\n<p style=\"text-align: justify;\">Similarly, the Marine Services Agreement was renegotiated to include an indigenization clause that mandates the training and integration of Liberians into operations, with the goal of achieving full local control within five years. The government&#8217;s royalty in the agreement was also increased to 20% from 15%, and as part of the agreement, NPA will benefit from logistical and technical support for the full operationalization of a navigational aid system that ensures safe passage for vessels coming to and leaving the port of Monrovia.<\/p>\n<p style=\"text-align: justify;\">ArcelorMittal Liberia Concession Under Review: The Boakai administration&#8217;s focus on reviewing concession agreements extends beyond the Freeport of Monrovia. Currently, the concession agreement for ArcelorMittal Liberia (AML), the country\u2019s largest iron ore mining operator, is under review. AML operates mines in Nimba and transports iron ore via rail and port infrastructures that are critical to its operations.<\/p>\n<p style=\"text-align: justify;\">While AML pays some fees for its use of port infrastructure, NPA Managing Director Dukuly argues that Liberia has not received its fair share. \u201cWe will work with other stakeholders to ensure the new agreement between Liberia and AML explicitly outlines AML\u2019s obligations to the Port Authority for the use of port infrastructure and marine service,\u201d he said.<\/p>\n<p style=\"text-align: justify;\">While these renegotiations are largely technical and policy-driven, they reflect a broader effort by the Boakai administration to reexamine long-term agreements that have shaped Liberia\u2019s economic landscape. The recent successes at the NPA set a precedent for future concession reviews, as the government seeks to ensure a fairer distribution of economic benefits from national assets.<\/p>\n<p>Source : NPA<\/p>\n","protected":false},"excerpt":{"rendered":"<p>For the first time, APM Terminals has agreed to review<\/p>\n","protected":false},"author":1,"featured_media":17606,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[40,1930,442,1921],"tags":[1493,2687,1929,31,32,1485,1297,1388,75,45],"class_list":["post-17605","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-liberia","category-news","category-ports-harbours","tag-africa-en","tag-daily-news","tag-liberia","tag-maritimafrica","tag-maritime","tag-maritime-in-africa","tag-maritime-industry-en","tag-news","tag-ports","tag-shipping-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ 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