APM Terminals' recent 4.61% tariff increase at the Freeport of Monrovia is not merely a routine adjustment but a glaring example of corporate exploitation enabled by governmental complicity. This move, far from being a necessary business decision, represents a continuation of a deeply flawed concession agreement that has been criticized for its detrimental impact on Liberia's economy and citizens[1].
The seemingly modest increase of USD 10.46 for a standard 20-foot import container is, in reality, a significant burden when considered in the context of Liberia's struggling economy. This increment follows a pattern of regular tariff hikes, a hallmark of APM Terminals' operations in Liberia. In 2021, the company imposed a staggering 9.67% increase, raising the cost of clearing a 20-foot container from USD 189 to USD 207[2]. These recurring increases compound over time, creating a substantial financial strain on businesses and consumers alike.
The timing of this latest tariff adjustment is particularly egregious. As Liberia grapples with the lingering economic impacts of the global pandemic and faces ongoing developmental challenges, this increase serves only to exacerbate the financial burdens on its citizens. The justification provided by APM Terminals, citing a predefined formula in the concession agreement, highlights the inherent flaws in a contract that prioritizes corporate profits over national interests[5].
The Concession Agreement between APM Terminals and the Government of Liberia, signed in 2010, has been a source of controversy and regret. Lawmakers who voted for its ratification have publicly expressed remorse, with Senator Edwin Melvin Snowe describing it as "the worst concession we ever passed in this Legislature"[1]. This agreement, which cannot be amended for 25 years, effectively handcuffs the government's ability to regulate port operations in the national interest.
APM Terminals' operations in Liberia have been marred by allegations of labor malpractices and financial impropriety. The company has been accused of bad labor practices, including the arbitrary dismissal of employees and refusal to reinstate them despite government directives[3]. These actions not only violate Liberian labor laws but also demonstrate a blatant disregard for the welfare of Liberian workers.
The financial implications of APM Terminals' operations extend beyond tariff increases. There are allegations that the company has been defrauding the government of millions in revenue[1]. This, coupled with the frequent and unjustifiable tariff hikes, suggests a pattern of financial exploitation that benefits the corporation at the expense of the Liberian state and its citizens.
The government's inability or unwillingness to effectively regulate APM Terminals' operations raises serious questions about potential collusion. Despite public outcry and legislative concerns, the government has failed to take decisive action to protect national interests. This inaction in the face of clear exploitation suggests a troubling alignment between corporate and governmental interests to the detriment of ordinary Liberians.
The impact of these tariff increases extends far beyond the port. As a key entry point for goods, higher port charges inevitably lead to increased prices for imported commodities. In a country where many citizens already struggle with poverty, these price hikes directly translate to reduced purchasing power and lower standards of living. Senator Snowe's warning that APM Terminals' operations could "evoke public uprising against the Weah administration" underscores the severity of the situation[3].
Attempts to review or amend the concession agreement have been stymied by its restrictive terms. APM Terminals' management has stated that while there is no specific clause for review, any changes would require compensation to ensure the company is not "short-changed"[5]. This stance effectively holds the Liberian economy hostage to corporate interests, preventing necessary adjustments that could alleviate the burden on citizens.
In conclusion, the latest tariff increase by APM Terminals is not an isolated incident but a symptom of a larger, systemic problem. Far from being a partnership for development, the concession agreement has become a tool for corporate exploitation enabled by governmental acquiescence. As Liberia faces mounting economic challenges, the need for a comprehensive review and potential renegotiation of this agreement becomes increasingly urgent without decisive action to prioritize national interests over corporate profits, the port that should be Liberia's gateway to prosperity risks becoming a symbol of its exploitation.
_____________________________________________________________________________
Get Involved
Do you have additional facts to add to this insight or an opinion you would like to express?
Email Us
References
[1] Liberia: Lawmakers Express Regret over Ratifying APM Terminals ... https://frontpageafricaonline.com/front-slider/liberia-lawmakers-express-regret-over-ratifying-apm-terminals-agreement-say-its-no-good-to-liberia/
[2] Liberia: House Reawakens APM Terminals' Investigation amid ... https://frontpageafricaonline.com/amp/news/liberia-house-reawakens-apm-terminals-investigation-amid-latest-increment-in-tariff/Collusion to Exploit Ordinary Citizens, APM Terminals, Government of LiberiaCollusion to Exploit Ordinary Citizens, APM Terminals, Government of Liberia Collusion to Exploit Citizens: APM Terminals and Government of LiberiaCollusion to Exploit Citizens: APM Terminals and Government of Liberia
[3] APM Terminals stirs up GoL - The New Dawn Liberia https://thenewdawnliberia.com/apm-terminals-stirs-up-gol/
[4] APMT hits back at Monrovia claims | News - Port Strategy https://www.portstrategy.com/apmt-hits-back-at-monrovia-claims/205797.article
[5] Liberia: APM Terminals Concession Agreement Review Delays ... https://frontpageafricaonline.com/front-slider/liberia-apm-terminals-concession-agreement-review-delays-amid-tariff-increment-but-company-assures-win-win-for-all/
[6] Bassa Rep. Joe Unhappy With APM Terminals Alleged Tariff Increase https://www.faapa.info/blog/bassa-rep-joe-unhappy-with-apm-terminals-alleged-tariff-increase/Collusion to Exploit Ordinary Citizens, APM Terminals, Government of Liberia
[7] Court Subpoenas NPA, APM Terminals, others https://www.theindependent.com.lr/2023/04/24/court-subpoenas-npa-apm-terminals-others/Collusion to Exploit Ordinary Citizens, APM Terminals, Government of Liberia
[8] Work conditions at APM Terminals in Liberia criticized https://shippingwatch.com/Ports/article14250253.ece
Comentários