Amid the unfavorable business climate in Liberia, the British port operator, APM Terminals Liberia has announced a 9.67 percent increment on all current charges of its services at the Free Port of Monrovia.
The port operator says the increment is in line with its concession agreement with the government of Liberia, which allows a 2021 tariff adjustment using predefined formula.
According to the company, since the conception of its concession agreement between wit the government of Liberia, it has consistently complied with the terms mandated in the concession agreement.
One analyst told Liberia Public Radio that the latest increment means many Liberian businesses will find it difficult to stay in business amid low purchasing power of many consumers since the prices of goods and services have more double especially in the last few years.
“The modernization of our terminal to an over US$100m state-of-the-art terminal is one we are especially proud of.
We are fully aware of the essential role that you have played and continue to play in contributing towards the growth of the Liberian economy. We appreciate your partnership and look forward to even more positive engagements this year,” APM Terminals stated in its advisory.
The port operator further stated that the 2021 adjustment would imply that a 20-foot import container, cleared within storage free-time, shall attract a total charge of US$207.36 (effective 1st February 2021), up from the current total charge of USD 189.08. Hence, the adjustment is US$18.28 for a 20-foot import container.
The increment comes at a time when businesses in the country are blaming the high cost of goods and services on the high tariffs at the Free Port of Liberia.
APM Terminals was quoted by Front Page Africa as saying that it is planning to invest in improving its operations and equipment with over US$3.3 million in 2021.
The government on the other hand, will receive additional revenue in terms of corporate taxes and concession fees, said Thomas Moore head of Commercial at APM Terminal.
APM Terminals in 2010 signed a 25‐year concession agreement for the operation of the Free Port of Monrovia.
The agreement for the port’s privatization is expected to result in the investment of US$120 million in the facility over the course of the contract term.
The Liberian government elected to privatize the port in response to the urgent need for port infrastructure improvement, as the current facility was developed prior to containerized cargo transportation and requires investment in equipment and technology to bring the facility up to current industry standards.
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