Transforming the maritime industry (1)

By Albert Derrick FIATUI, & David King BOISON(Dr)

On September 24, 2024, a pivotal discussion titled “Unlocking the Potential of a 24-Hour Economy: Impact on Ghana’s Blue Economy (Ocean) and the Maritime Industry” was published, shedding light on how leveraging ocean resources could transform Ghana’s economic trajectory.

The article emphasized that Ghana’s maritime sector holds the key to unlocking immense economic opportunities under the 24-hour economy framework. This conversation highlighted the alignment of the Blue Economy with Ghana’s quest for economic diversification and its strategic role in boosting trade and employment across critical sectors.

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Subsequently, on October 11, 2024, Myjoyonline published another critical piece, “24-Hour Economy Success Should Be Hinged on Strategic Plan,” reinforcing the need for deliberate policies to support the operationalization of round-the-clock economic activities.

The authors argued that for Ghana’s 24-hour economy to succeed, targeted sectors like the maritime industry must be prioritized with sustainable, technology-driven, and forward-thinking strategies.

These discussions collectively highlight the maritime industry as a vital cog in Ghana’s economic wheel. The sector currently contributes significantly to Ghana’s GDP through its role as a major hub for international trade, handling approximately 85% of the country’s external trade volume.

Yet, inefficiencies and underutilization prevent it from achieving its full potential. For example, Tema Port, one of the busiest in West Africa, processed approximately 1.2 million TEUs (Twenty-foot Equivalent Units) of containers in 2022.

This figure, while substantial, underscores the vast gap in efficiency and throughput when compared to global counterparts like the Port of Singapore, which handled over 36 million TEUs in 2022. This disparity points to the urgent need for modernization and alignment with global standards to enable 24-hour operations.

Ports and maritime infrastructure have been proven to drive transformative economic growth in countries that strategically invest in them. Globally, maritime nations such as Singapore, the Netherlands, and the UAE have demonstrated how modernized, efficient ports operating 24/7 can exponentially increase trade volumes and attract foreign direct investments.

For instance, the Port of Rotterdam contributes nearly 6.2% of the Netherlands’ GDP, serving as a critical logistics hub for Europe. Similarly, Ghana’s maritime industry has the potential to become the driving force behind the country’s transition to a 24-hour economy.

Through transforming port operations, streamlining logistics, and integrating digital solutions, Ghana can unlock untapped opportunities within the African Continental Free Trade Area (AfCFTA), which is projected to boost intra-African trade by 52.3% by 2025.

1. Current State of Ghana’s Maritime Industry

Ghana’s maritime industry is a cornerstone of its economy, serving as the primary conduit for international trade and encompassing a diverse range of sectors, notably port operations and fisheries. The country’s two main ports, Tema and Takoradi, are instrumental in facilitating trade.

According to the Ghana Statistical Service (2023), these ports collectively handle approximately 85% of Ghana’s international trade volume. In 2023, Tema Port managed 18 million tonnes of cargo, while Takoradi Port handled 8 million tonnes, reflecting robust performance despite global economic challenges (Ghana News Agency, 2024).

Beyond port operations, the fisheries sector plays a crucial role in Ghana’s economy and food security. Contributing approximately 1.2% to the national GDP, the sector supports the livelihoods of over 2 million individuals, particularly in coastal communities (Anang Tawiah, 2024). Fish provides 60% of Ghana’s animal protein intake, underscoring its role in national nutrition and food security (Anang Tawiah, 2024).

The industry is bifurcated into artisanal and industrial fisheries. Artisanal fisheries, often referred to as small-scale fisheries, are the backbone of local fishing communities. In 2022, the artisanal sector reported an annual catch of approximately 14,645.88 metric tons, reflecting its significant role in domestic fish supply and employment (Fisheries Committee for the West Central Gulf of Guinea. 2023).

However, this sector faces challenges such as overfishing, inadequate infrastructure, and limited access to modern fishing technologies, which impede its productivity and sustainability.

Industrial fisheries, characterized by large-scale operations, have shown fluctuating catch volumes in recent years. For instance, in 2020, the industrial sector reported a catch of approximately 661,927.14 metric tons, followed by a significant decline to 133,251.60 metric tons in 2021 (Fisheries Committee for the West Central Gulf of Guinea, n.d.). These fluctuations can be attributed to factors such as regulatory changes, stock depletion, and illegal, unreported, and unregulated (IUU) fishing activities.

IUU fishing poses a substantial threat to Ghana’s fisheries resources. Notably, foreign vessels, particularly those linked to Chinese enterprises, have been implicated in illegal fishing practices within Ghanaian waters.

Reports indicate that up to 95% of Ghana’s industrial trawling fleet has elements of Chinese control, despite regulations prohibiting foreign investment in this sector (Time, 2024). Such activities exacerbate the depletion of fish stocks, undermine local fishing communities, and compromise national food security.

The sustainability of fish stocks is a pressing concern. Overfishing, driven by both local and foreign actors, has led to the decline of key species, threatening biodiversity and the livelihoods dependent on these resources.

In response, the Fisheries Commission of Ghana planned to produce an updated stock assessment in 2023, based on 2022 catch data, to provide a more accurate evaluation of the status of these important stocks (USAID, 2023). Such assessments are vital for informed decision-making and the implementation of effective management strategies.

Transparency and governance within the fisheries sector have been subjects of scrutiny. The Fisheries Transparency Initiative (FiTI) conducted an assessment in 2023, revealing significant deficits in publicly available information regarding marine fisheries management in Ghana.

While national authorities collect considerable data, much of it remains inaccessible to the public, hindering accountability and stakeholder engagement (FiTI, 2023). Enhancing transparency is essential for building trust among stakeholders and ensuring sustainable fisheries management.

In addition to fisheries, Ghana’s maritime domain includes shipping services, maritime transport, and related logistics, all contributing to the nation’s economic framework. The Ghana Maritime Authority (GMA) is tasked with regulating these activities, ensuring compliance with international maritime conventions, and promoting safety and environmental protection within Ghana’s territorial waters (Ghana Maritime Authority, n.d.). The GMA’s role is pivotal in fostering a secure and efficient maritime environment conducive to economic growth.

Despite the sector’s potential, challenges such as inadequate infrastructure, regulatory bottlenecks, and limited adoption of advanced technologies persist. Addressing these issues is crucial for enhancing the efficiency and competitiveness of Ghana’s maritime industry. Investments in modernizing port facilities, improving regulatory frameworks, and adopting digital technologies can significantly bolster the sector’s performance.

Furthermore, the global maritime trade landscape is evolving, with projections indicating a growth of 2.4% in maritime trade volume in 2023, following a marginal contraction in 2022 (Graphic Online, 2023). To capitalize on these trends, Ghana must position its maritime industry to meet international standards and effectively compete in the global market.

2. Global Case Studies: Successful Implementation of 24-Hour Economies in the Maritime Sector

Examining global examples of successful 24-hour economies, particularly within the maritime sector, offers valuable insights for Ghana as it endeavors to implement similar strategies. These case studies highlight the benefits and challenges associated with round-the-clock operations and provide lessons that can inform Ghana’s approach.

Singapore: A Leading Maritime Hub

Singapore’s port operates 24/7, positioning it as one of the world’s busiest and most efficient ports. The continuous operations have enabled Singapore to handle a significant volume of cargo, contributing substantially to its economy. The success of Singapore’s 24-hour port operations can be attributed to advanced infrastructure, efficient logistics, and a strategic location.

Additionally, the government’s commitment to maintaining a business-friendly environment and investing in technological innovations has been pivotal. Singapore’s experience underscores the importance of infrastructure development, technological adoption, and supportive policies in establishing a successful 24-hour maritime economy.

Dubai, United Arab Emirates: Jebel Ali Port

Jebel Ali Port in Dubai operates around the clock, serving as a critical hub for trade between the East and the West. Its 24-hour operations have facilitated increased trade volumes and economic growth in the region.

The port’s success is supported by state-of-the-art facilities, a skilled workforce, and integration with free trade zones that attract international businesses. Dubai’s experience illustrates the significance of combining continuous port operations with favorable trade policies and infrastructure investment to enhance economic performance.

South Korea: Port of Busan

The Port of Busan operates 24/7, making it the sixth-largest container port globally. Its continuous operations have been instrumental in South Korea’s export-driven economy, enabling efficient handling of large cargo volumes.

The port’s efficiency is bolstered by advanced technology, including automated systems and real-time tracking, as well as strong government support for maritime infrastructure. Busan’s model demonstrates the role of technological integration and government backing in successful 24-hour port operations.

Lessons for Ghana

These global examples offer several lessons for Ghana:

• Developing and maintaining modern port facilities are crucial for efficient 24-hour operations. Investments in technology, such as automation and real-time data systems, can enhance productivity.
• Government policies that create a conducive environment for continuous operations, including favorable trade regulations and incentives for businesses, are essential.
• Training and developing a skilled workforce capable of managing and operating advanced port technologies are vital for sustaining 24-hour operations.
• Ensuring robust security measures and safety protocols to protect assets and personnel during extended operational hours is imperative.

3. Opportunities and Challenges in Implementing a 24-Hour Economy in Ghana’s Maritime Sector

Transitioning to a 24-hour economy presents significant opportunities for Ghana’s maritime sector, particularly in enhancing port operations, increasing trade efficiency, and boosting economic growth. However, this shift also entails challenges that require strategic planning and investment.

Opportunities:

1. Enhanced Port Operations

Operating ports like Tema and Takoradi around the clock can reduce vessel turnaround times, increase cargo handling capacity, and improve overall efficiency. This continuous operation aligns with global best practices observed in ports such as Dubai’s Jebel Ali and Singapore, which have successfully implemented 24-hour operations to boost trade and productivity.

2. Economic Growth and Job Creation

A 24-hour economy can stimulate economic growth by attracting foreign investment and creating employment opportunities. For instance, the nighttime economy in the United Kingdom contributes approximately £22 billion annually and supports over 450,000 jobs, demonstrating the potential economic benefits of extended operational hours.

3. Improved Competitiveness

In adopting a 24-hour operational framework, Ghana can position itself as a competitive maritime hub in West Africa, facilitating seamless trade with international partners across different time zones. This strategic advantage can attract multinational companies seeking efficient and reliable logistics solutions.

Challenges

1. Infrastructure and Resource Constraints

Implementing a 24-hour economy requires substantial investment in infrastructure, including lighting, security, and transportation systems, to support continuous operations. Additionally, ensuring the availability of skilled labor for night shifts poses a significant challenge.

2. Regulatory and Policy Frameworks

Establishing effective policies and regulations to govern 24-hour operations is crucial. This includes addressing labor laws, safety standards, and environmental concerns to ensure sustainable and equitable development.

3. Social and Cultural Considerations

Transitioning to a 24-hour economy may face resistance due to cultural norms and societal perceptions regarding nighttime activities. Public awareness campaigns and stakeholder engagement are essential to address these concerns and build community support.

Recommendations

To successfully implement a 24-hour economy in Ghana’s maritime sector, the following strategies are recommended:

• Develop a comprehensive plan that outlines the necessary infrastructure investments, policy reforms, and stakeholder collaborations required to support 24-hour operations. This plan should be aligned with national development goals and consider the unique challenges of the maritime sector.
• Encourage collaboration between government agencies and private sector entities to share resources, expertise, and risks associated with transitioning to a 24-hour economy. Such partnerships can facilitate efficient implementation and foster innovation.
• Invest in training programs to equip the workforce with the skills necessary for 24-hour operations, including technical competencies and knowledge of safety protocols. This ensures a competent and adaptable labor force capable of meeting the demands of continuous operations.
• Conduct public awareness campaigns to educate communities about the benefits and opportunities associated with a 24-hour economy. Engaging with local populations can help address cultural concerns and garner support for the initiative

4. Conclusion

In conclusion, transitioning Ghana’s maritime industry to a 24-hour operational framework presents a transformative opportunity to enhance economic growth, improve trade efficiency, and establish the nation as a leading maritime hub in West Africa. Drawing lessons from global exemplars such as Singapore and Dubai, it is evident that continuous port operations can significantly contribute to national GDP and bolster international trade.

However, this ambitious endeavor requires meticulous planning, substantial investment, and unwavering commitment from all stakeholders. Key considerations include the development of robust infrastructure, the establishment of comprehensive policy frameworks, investment in human capital through training and development, and the cultivation of public-private partnerships.

In embracing these strategies and learning from international best practices, Ghana can unlock the full potential of its maritime industry. This transformation will not only drive economic growth but also create employment opportunities, enhance trade efficiency, and solidify Ghana’s position in the global maritime arena.

The journey towards a 24-hour maritime economy is both challenging and promising. With strategic planning, collaborative efforts, and steadfast commitment, Ghana stands poised to achieve a resilient and dynamic maritime sector that operates seamlessly around the clock, contributing significantly to the nation’s economic prosperity.

Albert is the Executive Director at the Centre for International Maritime Affairs, Ghana (CIMAG), an Advocacy, Research and Operational Policy Think- Tank, with focus on the Maritime Industry (Blue Economy) and general Ocean Governance. He is a Maritime Policy and Ocean Governance Expert

Dr. Boison is a Senior Research Fellow at the Center for International Maritime Affairs Ghana (CIMAG)and distinguished academic, consultant, and CEO of Knowledge Web Centre, specializing in Blue Economy, Maritime and Port Operations & Logistics, IT, supply chain management, and Artificial Intelligence

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