Business: ‘APM Terminals to Pay US$1.25M in Arrears’

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Mrs. Cuffy-Brown assured Liberians that her quest to collect all lawful revenues through the NPA.

-Says Acting NPA managing director

Giving the National Port Authority’s (NPA) 90 days accomplishment over the weekend in Monrovia, the Acting managing director, Mrs. Cecelia Cuffy-Brown, said the APM Terminals has agreed to pay US$1.25 million as arrears for extra two years the company operated the marine service within the Freeport of Monrovia.This arrangement was upheld during the regime of the former President Ellen Johnson Sirleaf.

Mrs. Brown said all these are included in the memorandum of understanding (MOU) the NPA singed with the management of the APM Terminals, which her administration initiated with the support of the office of President George Weah.

In keeping with the new Memo as of May 25, 2018 , APM Terminals will begin to pay 15% royalty on its total annual revenue from Marine Services before expenditure and taxes to the National Port Authority.

Mrs. Brown’s disclosure was contained in her four months progress report released during a press conference when she said that her administration initiated the agreement because Liberia was losing millions of dollars as a result of agreement the entity signed with APM Terminals.

She explained that the milestone accomplishment of her administration is embedded under the new agreement, which obliged the APM Terminals to also pay US$37.5 million out of the annual gross revenue generated to the NPA for the Weigh Bridge for a period of five years.

“This new arrangement (MOU) will last for a five-year period and may be renewed in keeping with the terms and conditions of the agreement. From pitiful 0.07 % (US$4,000) per annum of total revenue from all operations by APM Terminals for the Marine Services to 15% and 50% respectively (US$5 million or more) including 5 years training,” the NPA release said.

Previously, APM Terminals generated more than US$38 Million while the Liberian government received the sum of 28,000 despite the expiration of the five years period contained within the contract since February 1, 2016, the NPA release said.

As part of the agreement, according to Mrs. Brown, the APM Terminals will train several NPA staff for five years in the area of port management. She said that her administration is also engaging other agencies and or port operators, who used the NPA facilities over the years without paying anything to the entity, to make good their commitments.

She said further that the NPA management is engaging Smith, a private company which operates tug boat services in the port city of Buchanan for years without paying royalties to pay, as the NPA management will not entertain “business as usual.”

“Today, we want to announce to the Liberian people that we have reached a landmark deal with the APM Terminals to improve the port facilities.

“The deal will ensure the sharing of revenue generated from marine and its cargo handing services, unlike the previous agreement signed in 2010,” she said.

She said APM Terminals will now pay a royalty of 15 percent of its total revenue generated from the marine services.

The acting NPA MD further said after the 15% and the deduction of the expenditure and taxes, the NPA and the APM Terminals will again divide its remaining profit 50-50 percent each.

At the same time, Mrs. Cuffy-Brown said that China Union owed the NPA US$7 million and has subsequently been invited for subleasing NPA facilities to Srimex without any regard to the port management.

She said that as part of the Pro-Poor Agenda policy; it has employed 265 Liberians and promised to provide them adequate training in the not too distant future.

She assured Liberians that her quest to collect all lawful revenues through the NPA on behalf of government remains unbending.

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