-Says MD George Adjei; Invests US$125M in equipment, commits to enabling trade in Liberia
APM Terminals Liberia says it is committed to enabling trade in Liberia and has invested US$125 million on equipment, technology, civil works and modernization of the Freeport of Monrovia, according to managing director George Adjei.
In a release issued on Tuesday, February 5, 2019, Mr. Adjei said the company has increased its tariff to meet the demands of effective port operations. “It has become inevitable to increase our tariff to meet the demands of effective port operations and ever increasing cost of operations.
“To help lessen the plight of our valued customers, we will be deferring reduction in storage free days again even though our concession agreement allows for the storage free days adjustments,” he said.
He explained that the company has increased its terminal handling charge by 10% effective 1 Feb. 2019, which is in line with the concession agreement signed between APM Terminals and the Liberian government of Liberia in September, 2010.
The concession agreement between the APM Terminals and the Government of Liberia (GOL) allows for a yearly increase in tariff.
“The 10% increase means shippers will now pay US$185 as against US$167 in 2018 as handling charge for a 20–foot container,” the release, said.
It said APM Terminals have also decided to lighten the burden on shippers and has deferred its plans to reduce the number of storage free days from 5 to 3 days even though the reduction in storage free days should have been implemented in August 2014, in line with the concession agreement signed with the Liberian government.
The release said the total transport and logistics cost of a shipment includes payments for ocean freight, customs duties, national Port Authority access fees, and royalty, BIVAC inspection fees, customer brokers fees, container handling/freight forwarding agent fees and trucking from the port to the warehouse.
It added that terminal storage and handling cost usually accrue to APM Terminals Liberia, amounts to 0.5% of the total transport and logistics cost incurred by the shipper and with the tariff increase, now amounts to 0.55%.
APM Terminals Liberia is a part of A.P. Moller-Maersk, an integrated container logistics company working to connect and simplify its customers’ supply chains. As a global leader in shipping services, they operate in 130 countries and employ roughly 76,000. Their mission, according to their officials, is to enable and facilitate global supply chains and provide opportunities for their customers to trade globally.
Officials informed the Daily Observer that APM Terminals Liberia employs over 250 people and indirectly employs a further 700 Liberians.