The revised agreement follows months of review by multiple stakeholders, including the National Port Authority (NPA), the Liberia Revenue Authority (LRA), the Ministry of Finance and Development Planning (MFDP), and the Liberian Senate.
Monrovia – The Government of Liberia has finalized a comprehensive revision of the Cargo Tracking Note (CTN) contract with the Global Tracking & Maritime Solutions (GTMS) Liberia Inc., significantly altering the revenue-sharing structure and strengthening regulatory oversight.
By Gerald C. Koinyeneh
The revised agreement follows months of review by multiple stakeholders, including the National Port Authority (NPA), the Liberia Revenue Authority (LRA), the Ministry of Finance and Development Planning (MFDP), and the Liberian Senate.
Originally signed in 2018, the CTN contract had become due for review just as a new government took office. Given the public scrutiny surrounding the contract, the Senate initiated an extensive review in April 2024, leading to public hearings and stakeholder engagements. The final report recommended key changes to ensure Liberia maximizes its benefits from CTN services.
Key Changes in the Revised Contract
In the revised agreement, under Revenue Sharing and Financial Management, the controversial throughput arrangement, which required GTMS to process 55,000 containers before paying the government, has been removed.
CTN service charges have also been reduced by 7-10%, making Liberia more competitive in the region; all CTN fees will now be deposited in local bank accounts instead of foreign accounts, ensuring foreign currency remains in Liberia.
A Transitory Account has been established in a local commercial bank, from which both GTMS and the government will receive their respective shares. The revenue-sharing ratio has improved, with the government’s share increasing from 20% to 40% (and further increasing to 45% after five years). This adjustment is expected to increase government revenue from CTN services by over 1,000%, securing an estimated $6 million annually.
Unlike the old contract, GTMS will now be required to pay all taxes, eliminating previous tax waivers.
Strengthening Local Participation and Oversight
GTMS must prioritize Liberian businesses and suppliers in its procurement process, provided they meet competitive standards, within six months, Liberian nationals must be appointed to key positions within GTMS, and employee benefits—including transportation, insurance, and other incentives—must be improved while Review, Monitoring, and Evaluation Committee has been reconstituted to ensure greater oversight of GTMS operations, guaranteeing compliance with the contract terms.
Investment in Technology and Port Capacity
GTMS is now obligated to continuously invest in new technologies and equipment to improve CTN services, assist in anti-money laundering efforts, and provide real-time data to the LRA for enhanced revenue collection.
GTMS will provide specialized training and equipment to support NPA personnel and help Liberia meet International Ship and Port Facility Security (ISPS) standards.
Legal and Dispute Resolution Framework: The governing law for the contract has been changed from UK law to Liberian law, ensuring local legal jurisdiction.
It outline that dispute resolution will now take place in Liberia, rather than England, through arbitration mechanisms within the country.
Corporate Social Responsibility CommitmentsAs part of its corporate social responsibility, GTMS will contribute $100,000 annually to Liberia’s School Feeding Program and invest in community development initiatives.
Implications of the Revised Agreement
Officials say the newly revised CTN contract represents a significant policy shift aimed at enhancing government revenue, increasing local participation, and strengthening financial transparency. By renegotiating key terms, the government has positioned Liberia to maximize economic benefits from its port operations while ensuring compliance with international trade and security regulations.
With the revised contract set to take effect on April 1, 2025, stakeholders will closely monitor its implementation to ensure that the expected financial and operational improvements materialize.
