LPP Speaks Against ‘Redundant Wastes’ at NPA -Urges Boakai to Stop Providing Support to Two Separate Boards

MONROVIA – The Liberian People’s Party (LPP) has spotted what it considers “redundant wastes” at the National Port Authority and is urging President Joseph N. Boakai to cease the expenditure of public funds that result from maintaining two separate boards of directors and two executive teams for the management of the Free Port of Liberia.

The party says this is redundant structure wastes of resources and complicates the management of port operations.

The LPP advocates for APM Terminals to continue its management of the Free Port of Monrovia, adhering strictly to the terms outlined in the 2011 concession agreements.

A release quotes J. Yanqui Zaza, Chairman of the LPP, as saying that in this revised governance structure, the National Port Authority (NPA) would take on the role of both regulator and landlord, aligning with Landlord Port Governance principles, as the World Bank outlined in 2017.

In addition to restructuring management, the LPP calls for APM Terminals, which serves as the operational team (a private enterprise), to reimburse the Government of Liberia for all operational costs incurred on its behalf. This includes the considerable salaries of $13 million and $14 million that the NPA paid for 2023 and 2024, respectively.

The party noted that it is vital to highlight that the NPA, as the landlord and regulatory authority, did not invest in purchasing or maintaining essential equipment or employing a significant workforce to manage the daily operations at the port. This further emphasizes the financial burden placed on the government by the current arrangement, it stated, adding: ““What exactly is Landlord Port Governance? This model is characterized by a blend of public and private interests in port management. Specifically, the port authority assumes dual responsibilities: acting as both a regulator and a landlord. Meanwhile, operational activities, especially those related to cargo handling, are executed by private firms—in this instance, APM Terminals. This structure encourages collaboration and efficiency while allowing the private sector to leverage its expertise in port operations (as defined by the World Bank in 2007).

“How does the National Port Authority generate its revenue under this governance model? Consistent with Landlord Port Governance principles, the NPA generates income through various channels: first, it receives concession fees from APM Terminals; second, it collects maritime fees, which include rental income from piers and non-roofed accessories; and third, it earns rental income from storage facilities. APM Terminals, as a private entity, creates revenue by managing essential port activities, encompassing two mobile harbor cranes, 11 trailers, 13 spreaders, seven forklifts, and nine reach stackers. Additional income comes from crucial tasks such as loading and unloading cargo, vehicle parking, and ship repair services, all by the stipulations outlined in the 2011 concession agreements. This detailed understanding of both the fiscal implications and the operational structure highlights the necessity for reform and accountability in managing the Free Port of Monrovia.”

The Liberian People’s Party said it was pleased that on August 5, 2024, President Joseph N. Boakai reaffirmed a significant transition in the management of the Free Port of Monrovia.

It recalled that during a crucial meeting with key representatives from APM Terminal, Mr. Igor van den Essen, the Regional Managing Director; Mr. Clay Crain, the Managing Director of APM-Liberia; and Mr. Sekuu H. Dukuly, the Managing Director of the National Port Authority (NPA) of Liberia—the President confirmed the transfer of this vital asset from the state-owned National Port Authority to APM Terminals.

The party quotes President Boakai as expressing a firm commitment to uphold the binding 2011 agreement, emphasizing the importance of safeguarding the interests of the Liberian people. He highlighted that this transfer is intended to bring about improved efficiency and operational effectiveness at the Free Port of Monrovia, ultimately benefiting the nation’s economy.

The head of state of Liberia committed to honor the agreement established in 2011, emphasizing his dedication to safeguarding the rights and interests of the Liberian people. This promise reflects a broader intention to prioritize the needs and welfare of citizens while ensuring that the terms of the 2011 agreement are fully implemented and respected.

The LPP called on the Boakai administration to take the initiative to demand that APM Terminals publish comprehensive financial statements, which the party considers a transparency that is crucial for understanding the factors behind the notable 9.97% tariff increase observed in 2021.

“Additionally, the financial statements should include detailed information regarding salary structures, administrative expenses, and other relevant financial metrics. This would provide clarity on how operational costs are managed and the rationale behind tariff adjustments,” the party further emphasized.

 “APM Terminals is urged to provide a thorough explanation of the recent increase in costs associated with the National Port Authority (NAP) services. It is essential to communicate how the company plans to enhance its operational efficiency in the loading and unloading of goods. Furthermore, APM should present a detailed schedule demonstrating its productivity metrics and expected timelines for improving service efficiency. This information will help stakeholders understand the value and challenges of current port operations.”

The LPP strongly suggests that APM Terminals undertake a comprehensive removal of debris and sedimentation, particularly focusing on the wreckage of ships and boats that have remained submerged for decades.

Clearing these obstacles is critical for improving navigability within the port, thereby reducing congestion and delays for incoming and outgoing vessels. By facilitating smoother access for shipping traffic, APM can significantly enhance operational efficiency.

The LPP believes in the importance of establishing a transparent and accountable process for the selection of inspection consultants. By ensuring an open procedure, the likelihood of bias and unnecessary costs can be minimized, potentially leading to reduced inspection fees for businesses relying on port services. This transparency would foster trust among stakeholders and promote fair practices within the inspection process.

The overarching principle is that the government exists to serve the interests of its citizens, not to exploit them through mismanagement or lack of accountability.