NPA, APM Terminals Reset Accord
The Management of the National Port Authority (NPA) has disclosed that it has reached an agreement with the management of APM Terminals relative to the management of the marine services and weighbridge operations at the NPA.
The NPA said it has renegotiated the marine deal under which its management will now receive 15 percent royalty on total annual revenue from the marine services being operated by APM Terminals.
It can be recalled that following the inauguration of President George Manneh Weah and subsequent appointment of acting NPA Managing Director Cecelia Cuffy-Brown, the NPA embarked on an exercise to reclaim the marine services from the APM Terminal.It was established by the new management of NPA that APM Terminals had operated the marine services at the Free Port of Monrovia for seven years, two years more than the agreement period, and has generated over US$38 million, with only US$28,000 in royalty being remitted to the Government of Liberia.
This means that APM Terminals generated annual revenue of US$7 million, while the Government of Liberia received only US$4,000, something Port Manager Brown said “robs the port of the needed revenue and further undermines government’s agenda to impact the lives of the poor.”
However, Brown addressing journalist in Monrovia at the weekend, said that under the new agreement, after receiving the 15 percent of the total revenue generated by APM Terminals, the NPA and APM Terminals will then split by 50 percent each, the remaining profit.
“APM Terminals will also pay the amount of US$1.25 million dollars to NPA as arrears for the extra two years the company operated the marine services and at the same time provide training for NPA staff for a period of five years,” she said.
Under the agreement of the weighbridge operations, Brown noted that APM Terminals will pay 37.5 percent out of its annual gross revenue generated, noting that the new agreement will last for five years period and may be renewed in keeping with terms and conditions.
“We at the NPA see these accomplishments as a major boost to President Weah’s vision for prosperity and development as we strive to implement the Pro-Poor Agenda,” Brown said.
According to her, such accomplishments by the NPA management would not have been achieved without the full support of President Weah, adding, “The president’s vision and love for the country has facilitated the gains we made.”