Tema Port Labour Crisis Threatens to Push Cargo to Togo, Warns Business Group

A crippling labour dispute at Ghana's busiest seaport could force importers to abandon Tema Port for Togo's Lomé, potentially opening floodgates for smuggling and costing the government millions in lost revenue, the country's food and beverage industry has warned.

The Food and Beverages Association of Ghana (FABAG) issued an urgent alert Sunday, revealing that a strike by unskilled port workers has slashed cargo offloading capacity by a staggering 90%—from the normal 2,000 metric tonnes daily to a mere 200 metric tonnes. The dramatic slowdown is wreaking havoc on supply chains, driving up costs, and threatening the availability of essential commodities like rice and sugar in Ghana's markets.

In a December 29 statement that pulled no punches, FABAG painted a dire picture of mounting demurrage charges—fees importers pay when cargo sits too long at port—and warned that continued delays could push desperate businesses to seek alternatives across the border in Togo.

The paralysis at Tema Port stems from a compensation dispute between port management and unskilled laborers responsible for the backbreaking work of offloading bulk and bagged goods from vessels. These workers have been on strike "for some time," according to FABAG, after failing to reach an agreement with management over pay rates.

"The Food and Beverages Association of Ghana urgently wishes to draw the attention of the Director General and Management of Tema Port, the Minister of Transport and the general public to the growing concern among its members regarding significant delays in the offloading and clearance of bulk and bagged goods," the association stated.

Tema Port management's response—hiring temporary replacement workers—has proven woefully inadequate to maintain normal operations. The substitute laborers can manage only 200 metric tonnes per day, representing just 10% of the port's typical capacity of at least 2,000 metric tonnes daily.

This dramatic productivity collapse has created a bottleneck affecting importers across multiple sectors, with vessels forced to wait extended periods for offloading and clearance.

The reduced offloading rate translates directly into financial pain for businesses. Vessels sitting idle at port rack up demurrage charges—fees that can quickly reach thousands of dollars per day, costs that importers ultimately must absorb or pass along to consumers.

"This reduced offloading rate has caused prolonged delays in clearing goods, resulting in high demurrage charges for importers," FABAG explained, noting that members face "increased operational costs, which could have downstream effects on prices and availability of food and beverage products, especially rice and sugar, in the market."

For Ghanaian consumers already grappling with inflation and cost-of-living pressures, the prospect of further price increases on staples like rice and sugar adds economic stress to households across income levels.

Rice remains a dietary staple for millions of Ghanaians, while sugar features prominently in beverages, baked goods, and countless food products. Disruptions affecting these commodities ripple throughout the food system.

Perhaps FABAG's most alarming warning concerns the possibility that frustrated importers might bypass Tema Port entirely, instead directing cargo to Lomé Port in neighboring Togo.

"The Food and Beverages Association is particularly concerned that if this situation is not quickly and effectively resolved, some importers may be forced to divert their goods to Lomé Port in Togo," the statement cautioned.

While Lomé might offer faster clearance times, cargo diverted there would need to enter Ghana somehow—and that's where the smuggling risk emerges.

"This could encourage attempts to smuggle goods back into the country, potentially leading to massive losses in government revenue and undermining trade regulations," FABAG warned, highlighting how a labor dispute at one port could cascade into border security and tax collection crises.

Ghana shares a porous border with Togo, and smuggling has long challenged customs enforcement efforts. Goods cleared in Lomé could easily cross into Ghana through unofficial routes, evading duties and taxes that the government relies on for revenue.

The financial implications could prove substantial. Import duties on food products represent significant revenue streams, and large-scale smuggling would deprive government coffers while creating unfair competition for businesses that follow proper importation procedures.

Tema Port serves as Ghana's primary maritime gateway, handling the vast majority of the country's imports and exports. Any disruption to port operations reverberates throughout the national economy.

Manufacturing companies that depend on imported raw materials face production delays. Retailers waiting for inventory confront empty shelves. Exporters struggle to get products to international markets on schedule.

The food and beverage sector proves particularly vulnerable because many products have limited shelf lives, and delays can result in spoilage, waste, and financial losses beyond just demurrage charges.

For Ghana's broader competitiveness, port efficiency matters tremendously. Businesses choosing where to locate operations or which markets to serve factor port performance into decisions. A reputation for unreliable port operations could discourage investment and trade.

Lomé Port has aggressively positioned itself as West Africa's premier transshipment hub, investing in infrastructure and operational efficiency to attract cargo that might otherwise go to competitors like Tema, Abidjan, or Lagos.

Any significant cargo diversion from Tema to Lomé would represent both immediate revenue losses and potentially longer-term strategic setbacks if importers establish new supply chain patterns they're reluctant to change even after Tema's issues resolve.

Regional port competition has intensified as countries recognize maritime trade's economic importance. Ghana cannot afford to cede market share through self-inflicted operational failures stemming from unresolved labor disputes.

FABAG emphasized that the crisis demands urgent intervention from multiple stakeholders to prevent further economic damage.

"We are calling on the Director General of Tema Port, Tema Port Management, relevant authorities, and labour representatives to engage in dialogue to resolve this dispute urgently," the association stated.

The emphasis on dialogue reflects recognition that this dispute requires negotiated settlement rather than unilateral solutions that leave underlying grievances unresolved.

Port workers deserve fair compensation for the demanding physical labor they perform. Port management needs adequate staffing to maintain operational capacity. Importers require efficient, predictable clearance processes. The government wants tax revenue and border security.

Finding solutions that address these various interests requires good-faith negotiations where all parties make compromises toward sustainable outcomes.

"A swift and sustainable resolution is necessary to restore efficient port operations, reduce unnecessary financial burdens, and ensure the smooth flow of food and beverage supplies to the Ghanaian market," FABAG concluded.

The coming days and weeks will determine whether stakeholders can bridge their differences before importers begin diverting cargo to Lomé in significant numbers—a tipping point that could prove difficult to reverse.

The Minister of Transport and the Tema Port Director General face pressure to broker agreements that end the labor action while addressing workers' compensation concerns. The challenge lies in crafting deals that workers accept without creating unsustainable cost structures for port operations.

For ordinary Ghanaians, the resolution matters because it will influence food prices, product availability, and economic stability. A protracted dispute that disrupts food supplies could trigger inflation, shortages, and public discontent at a time when economic pressures already strain household budgets.

Tema Port has overcome challenges before, but this crisis demands swift action. The longer vessels sit waiting, the higher demurrage charges climb, and the more attractive Lomé becomes as an alternative—with all the smuggling and revenue loss risks that entail.

Ghana's economic resilience and food security may well depend on whether labor, management, and government can find common ground before this dispute spirals into a full-blown crisis affecting millions of Ghanaians who depend on efficient port operations for their daily bread—and rice, and sugar.