CTN-SPN reintroduction will cost Ghanaian shippers between €187.2 million and €382.8 million—EFFAG

The Exim Frozen Foods Association of Ghana (EFFAG) has cautioned against any move to reintroduce the Cargo Tracking Note (CTN), also known as the Smart Port Note (SPN), warning that it would significantly increase costs for businesses and consumers.

In a statement signed by its Executive Secretary, Mr. Michael Obiri Adjei, and copied to Modern Ghana News in Tema, EFFAG estimated that implementing the CTN/SPN system could cost Ghanaian shippers between €187.2 million and €382.8 million annually.

The association said the estimate was based on Ghana’s 2024 container traffic of 1.7 million Twenty Foot Equivalent Units (TEUs), using fee structures previously associated with earlier attempts to introduce the system.

It explained that the calculation covers only full container load cargo and excludes other categories, meaning the overall financial impact could be even higher.

EFFAG argued that the proposed system would introduce additional charges and administrative requirements without delivering clear benefits in cargo clearance or trade facilitation. It warned that the resulting costs would ultimately be passed on to consumers through higher prices for imported goods.

The association therefore urged government, through the Ministry of Transport and the Ministry of Trade, to reject any plans to reintroduce the system and instead strengthen existing digital platforms already in use within the port sector.

EFFAG called specifically on the Minister of Transport, Joseph Bukari Nikpe, to abandon any proposal to revive the CTN/SPN and focus instead on improving existing systems and addressing long standing concerns raised by traders.

Among its recommendations, the association urged government to resist pressure to reintroduce the CTN/SPN, support internal digitalisation initiatives within the Ghana Shippers Authority, and enforce measures aimed at eliminating what it described as unlawful port charges.

It also called for continued strengthening of platforms such as the Integrated Customs Management System for cargo tracking and revenue assurance.

EFFAG maintained that the primary function of the proposed system is to collect shipping data for the Ghana Shippers Authority, arguing that this should be financed through the authority’s existing internally generated funds rather than additional fees on importers and exporters.

The association also questioned the reported partnership between the Ghana Shippers Authority and the Inter Ocean Maritime and Logistics Institute, suggesting that the arrangement may not fully align with the Authority’s mandate to protect shippers’ interests.

It further argued that the CTN/SPN initiative appears to be more of a revenue generating mechanism than a trade facilitation tool, and said it would duplicate existing systems already handling cargo tracking and clearance processes.

According to EFFAG, reintroducing the system would add layers to port procedures, increase costs, and create delays in cargo processing. It stated that the CTN/SPN does not address any identifiable gap in the current port ecosystem and risks reversing gains made in trade modernisation.

The association added that the proposal is inconsistent with international trade facilitation standards under frameworks such as the African Continental Free Trade Area and World Trade Organization Trade Facilitation Agreement.

It warned that additional clearance requirements could weaken Ghana’s competitiveness as a regional trade hub, especially compared with neighbouring ports in Togo and Côte d’Ivoire.

EFFAG concluded by urging stakeholders to prioritise reducing bottlenecks, eliminating unlawful charges, and improving efficiency across the trade and logistics sector. It said it remains open to engagement on reforms that reduce costs and improve ease of doing business but maintained that the CTN/SPN is redundant, costly, and counterproductive.

The association also raised concerns about the Concerned Traders Association of Ghana, questioning its visibility within the broader trading community and its recent advocacy for the return of the CTN/SPN system, which it says has faced sustained opposition from key industry players over the years.