PSI Garment Company faces logistical/marketing challenges

The Oak Brook Ghana Limited (OBGL) a garment Manufacturing Company under the President's Special Initiative (PSI) is producing under capacity due to logistical and marketing challenges.
Enumerating some the challenges, Mr Chandrapala Dissanayake, the General Manager of OBGL mentioned high cost of electricity, inadequate skilled labour, transportation, cumbersome import/export formalities, high banking rates, as well as labour regulations.
He said these constraints had stifled growth of the company.
Mr Dissanayake raised these issues when members of the Eastern Regional Shipper Committee (ERSC) toured the factory to acquaint themselves with its operations.
They also toured the Aviance Ghana Limited, providers of airport ground handling services, to learn about their operations.
Mr Dissanayake noted that, in spite of the potential of growth for businesses, the labour regulations and factors such as the delays in the import and export of goods were affecting the domestic companies as compared with others abroad.
He said countries such as Malaysia, Sri Lanka and Pakistan takes about 12 days for the processing of banking, documentation and clearance of goods whilst in Ghana, one spent not less than 100 days.
Mr Dissanayake said though it has been made to believe that goods could be cleared at the port in three days, that was not practicable.
He said as a result of the constraints, the Company, which started its operation in 2004 at the Garment Village at the Free Zone Area in Tema with 240 sewing machines, now worked with only 100.
Consequently, management has scaled down the staff strength of 400 to 120. Mr Dissanayake said the Company, which was exporting greater part of its products to the United States of America (USA) under the African Growth and Opportunity Act (AGOA) and the European market “is now producing on order from local sources”.
The offer under the AGOA, he said, was abrogated in 2007 because of insufficient cargo for export which made the Company incurred huge loss.
He, however, said management was striving hard to explore marketing avenues in the US and the Europe and expressed optimism of receiving fruitful response to make it resume full production by September this year.
It is expected to produce 200,000 pieces of per month when it resumes operation.
At the time of the visit, the factory workers were sewing uniforms ordered by some local institutions.
The OBGL, which imports raw materials from China, produces garments ranging from pair of trousers, polo shirts popularly known as “La Coste” and over-all coats.
At the Aviance Ltd, it was noted that the export warehouse had no cooling system but Mr Mark Ofori, Head of Airside Operations who took the shippers round said, the Ghana Airport Company Limited (GACL) has drawn a long term programme to install freezing facility in both the export and import warehouses.
He said, however, that some private companies have rent to companies, cooling facilities and assured shippers that their products were safe at all times.
Mr Ofori said the British Airways has installed scanning machines, which detect foreign materials hidden in cargoes.
The Ghana Shippers Council facilitated the tour, which aimed at broadening the horizon of members to enable them increase their export.