MONROVIA – The government of Liberia has secured a game-changing agreement with GTMS Liberia Incorporated to overhaul the Cargo Tracking Note (CTN) deal, a move that is set to significantly enhance the country’s economic standing by increasing government revenue and reducing shipping costs. This new deal, finalized on Tuesday, March 11, 2025, marks a pivotal shift in Liberia’s approach to port management and trade facilitation.
A standout feature of the renegotiated CTN agreement is the sharp rise in Liberia’s share of port revenue. The government’s stake has been raised from a modest 2% to 40% for the first five years, with the potential to increase to 45% in the following five years. This increase is expected to bring substantial additional revenue, which will be reinvested into the country’s port infrastructure, trade facilitation, and national development projects.
The renegotiation also addresses long-standing concerns about the high costs of trade at Liberia’s ports. Shipping fees, particularly for importers, have been drastically reduced, making Liberia’s ports far more competitive in the region. For instance, the cost of importing a 20-foot container has dropped from $130, which included various administrative charges, to just $95 under the new terms. Similarly, export fees for a 20-foot container have been slashed by 50%, from $30 to $15, offering relief to Liberian exporters.
In addition to the reduced shipping fees, the new agreement provides greater transparency and predictability for bulk cargo shipments. The base rate for bulk imports will remain at $0.85 per metric ton, while exports will incur a rate of $0.36 per metric ton. However, the significant change comes in the removal of unnecessary documentation charges, ensuring that port users face fewer hidden costs.
One of the most notable aspects of the renegotiated deal is the involvement of the Liberia Revenue Authority (LRA), which will now oversee the CTN agreement. This step ensures that the country’s revenue collection mechanisms are properly managed, with the LRA playing a critical role in monitoring and enforcing compliance with the terms of the deal.
The deal, which has a term of 10 years, also includes provisions for periodic reviews every five years, ensuring that the agreement adapts to changing circumstances and continues to align with Liberia’s economic and trade objectives. This flexibility is crucial in ensuring the long-term viability and success of Liberia’s port operations.
The National Port Authority (NPA), under the leadership of Managing Director Sekou A. M. Dukuly, played a key role in securing the renegotiated CTN agreement. The NPA worked closely with the Liberia Revenue Authority (LRA), the Ministry of Finance and Development Planning (MFDP), and the Ministry of Justice (MOJ) to ensure that the renegotiation process was transparent, fair, and beneficial to both the government and the private sector.
The renegotiated agreement has also addressed concerns over the CTN’s revenue-sharing structure, with the government now entitled to a larger portion of the revenue generated from port activities. This change ensures that Liberia’s ports will not only become more cost-effective for businesses but also more profitable for the government, thereby providing a more sustainable source of revenue for the nation.
With the renegotiated terms, the government of Liberia stands to benefit from a substantial increase in revenue, while businesses, especially importers and exporters, will enjoy lower shipping costs. This deal represents a significant win for both the public and private sectors, and is expected to further enhance Liberia’s attractiveness to international investors and shipping lines.
In conclusion, the renegotiated CTN agreement marks a new chapter for Liberia’s maritime sector. The deal’s focus on reducing costs, increasing government revenue, and enhancing trade efficiency is set to boost Liberia’s economic growth and position the country as a more competitive player in global trade. This achievement emphasizes Liberia’s commitment to fostering a business-friendly environment and driving long-term economic prosperity through smarter, more strategic port management.
