Accra, June 15, GNA - The government is taking steps to amend the Merchant Shipping Act of 1963 to ensure that outdated provisions, which have limited the scope and application of the law, are changed.

This will make the law more responsive to modern demands of the shipping industry.

The bill, which is yet to be placed before parliament, consolidates provisions of existing legislation, which are still applicable, with many new provisions that take into account developments in international shipping laws.

Mr Mike Hammah, Deputy Minister of Roads and Transport, said these at the celebration of the first African Shippers' Day in Accra.

The day organised by the Union of African Shippers Councils and Ghana Shippers Council is under the theme: "Facing the Challenges of Shipping in the Next Millennium".

It is being attended by about 150 participants from the West and Central Port area.

The day is meant to draw attention to the Council of African Shippers and create a forum for them to address common problems in order to make them ready for the next century.

Mr Hammah said as a long term measure, there is the need to encourage shippers' councils to create viable local freight markets, where local shipping companies could compete for a share of the freight that come through their ports.

He said there is an urgent need for government to take a close look at import and export laws and regulations to bring them in line with current developments in international trade practices.

The private sector must also lend a hand to the industry if it is to grow and meet the challenges posed by advanced shippers.

The deputy minister asked the meeting to identify problems of the industry and come out with clear-cut strategies that will help them overcome their shortcomings.

Mrs Victoria Addy, a member of the Council of State who was the special guest of honour, described the day as an important occasion, which will let the various councils break out of their biases against the continent and brace themselves to face the wind of globalisation and liberalisation blowing across the world.

She told the shippers councils present to undergo "some transformation in structure, management and operations in order to meet the requirements of the new economic environment and growing private participation.

"With their (private sector's) experience and expertise, our shippers' councils are in a position to provide infrastructure and services to the large number of small- and medium-sized import and export companies and individuals".

Mrs Addy said the government is working out a new shipping policy aimed at encouraging foreign and local businessmen to invest in the country's maritime and transport sector, especially in owning and operating commercial shipping lines.

"Incentives may include tax-free reserves, tax credit and re-imbursement of some taxes to enable local lines build reserves for expansion".

Mrs Addy said the policies are being considered, because the government recognises the important role indigenous shipping lines can play in national development.

She congratulated the Ghana Shippers Council for taking advantage of new developments in the industry to compete for cargo generated by foreign trade.

Mrs Addy said government policy on port infrastructure development is geared towards raising Ghana to a "brighter position" within the international shipping community.

Mrs Addy said the era when users and suppliers of shipping services belonged to different camps is past.

"They need to forge closer relationships and work together ... knowing each other's needs and requirements and addressing the common issues that confront them."

Mr Kofi Mbiah, acting Chief Executive of Ghana Shippers Council, said the shipping industry has undergone phenomenal changes.

Global sea-borne trade, which reached a record high of 4.94 billion tons in 1997, rose again to five billion tons in 1998.

Mr Mbiah said these developments call for the acquisition of new technologies, formation of strategic alliances and managerial re-engineering to enable African shippers to cope with future challenges.

He called for drastic reforms, restructuring and the introduction of new products.

Mr Mbiah urged the Union of African Shippers Councils to re-examine its focus and increase assistance to shippers to reduce cost in the entire transport chain.

He called for capacity building through the provision of infrastructure, such as warehouses, inland container depots/dry ports and relevant shipping training for shippers.

Nana Yeboah Kodie Asare the second, President of the Private Enterprise Foundation, said although there are vast potentials in the shipping industry, Ghana and Africa have not been able to tap the potentials.

Cumbersome customs procedures and cost of operations impede the development of the shipping industry and make end products expensive, he said. Mr Adebayo Savimu, Chief Executive of Nigeria Shippers Council and chairman of the Union of African Shippers Council, suggested that shippers should be involved in policy and decision-making on matters relating to shipping.

He said co-operation between service providers and decision-makers must be sustained to move the African shipping industry forward, adding that the needs of shippers must be taken into consideration.

Mr Savimu called for effective security measures to guarantee the safety of cargo and the settlement of complains.