House of Representatives Investigate Claims Against APM Terminals, BIVAC

Monrovia – The House’s Committees on Ways, Means, Finance and Development Planning, Judiciary, Banking and Currency, including Commerce and Industry have been mandated to probe accusations bordering on the refusal of several business entities operating in the country to accept the local currency (Liberian Dollar) toward payment of goods and services as reported by Representative Edwin Snowe.

Report by Henry Karmo – [email protected] 

Plenary took the decision based on a communication from Hon. Edwin Melvin Snowe of Electoral District-1, Bomi County.

“I present my compliments and write bringing to the attention of the August Body the willful and unrealistic refusal of some business entities operating within our jurisprudence to accept the Liberian Dollars as a medium of exchange,” said Snowe.

The Bomi County lawmaker accused the APM Terminals and BIVAC of deliberately refusing the Liberian dollars in exchange of goods and services, thereby resulting into a high demand for the United States dollars, which he said is the only acceptable currency as per the standard of these entities. 

Rep. Snowe, who is Chairman of the House’s Committee on Foreign Affairs; wrote that the situation has caused high exchange rate changes that are unrelated to the underlying pattern of trade as well as instability and uncertainty for struggling Liberian businesses and consumers, who trade largely in Liberian Dollars. 

“Mr. Speaker, distinguish colleagues, as the urgency of our intervention into this situation cannot be overemphasized; I pray we take the necessary appropriate actions, in the true spirit of patriotism to end this unjust action against our citizens,” Rep. Snowe added. 

Following discussion on the matter, a motion proffered by Rep. Larry Younquoi of Electoral District-8, Nimba County, was accepted by Plenary mandating the relevant committees to investigate the claims reported by the Electoral District 1 Representative and report to the body within two weeks.

The National Port Authority (NPA) was established by an Act of the National Legislature in 1967 and amended in 1970 as a state-owned corporation to manage, plan, and build all public ports in Liberia.

The National Port Authority (NPA) was established by an Act of the National Legislature in 1967 and amended in 1970 as a state-owned corporation to manage, plan, and build all public ports in Liberia.

The NPA system has four ports: Freeport of Monrovia, Port of Buchanan, Port of Greenville, and Port of Harper. The Freeport of Monrovia is the largest and the main port within the Authority’s network.

APM Terminals is an international container terminal operating company headquartered in The Hague, Netherlands. 

It is one of the world’s largest port and terminal operators as well as providing cargo support and container Inland Services, and is the largest port and terminal operating company in terms of overall geographic scope.

It operates 75 port and terminal facilities in 41 countries on five continents, with five new port projects in development, as well as 117 Inland Services operations providing container transportation, management, maintenance and repair in 38 countries, for an overall global presence of 59 countries.

APM Terminals generated revenue of US$4.17 billion in 2016, with a Return on Invested Capital (ROIC) of 5.7%, with lower profit in commercially challenged terminals in Latin America, North-West Europe, and Africa as a consequence of liner network changes and weak underlying markets.

The number of containers handled by APM Terminals (weighted by APM Terminals’ ownership interest) increased by 3.7% compared with 2015, to 37.3 million TEUs, boosted by the acquisition of the Grup Maritime TCB portfolio in March 2016.

Adjusting for TCB as well as terminals divested in 2015, like-for-like volumes increased 1%, driven by hub terminals and terminals in North Asia and Southeast Asia.