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APM Terminals Agrees to Review 25-Year Concession Deal with Liberia
Historic Breakthrough in Port Concession Negotiations
Monrovia – In a landmark development for Liberia’s maritime sector, APM Terminals has agreed to review its 25-year concession agreement with the Liberian government. This marks a significant shift after years of unsuccessful attempts by previous administrations to renegotiate the deal.
Background of the Agreement
The concession agreement, originally signed in October 2010 and set to expire in 2035, notably lacked a formal review clause—an omission that deviates from international best practices and other concession agreements in Liberia. Previous renegotiation attempts, including a 2021 push under former President George Weah, had failed to yield results.
The Path to Renegotiation
The breakthrough came after months of intensive discussions between:
- The National Port Authority (NPA), led by Managing Director Sekou H. Dukuly
- APM Terminals Liberia, headed by Clay Crain
These negotiations culminated in a crucial meeting with President Joseph Nyumah Boakai, where the Liberian leader successfully secured APM Terminals’ commitment to the review process.
Expert Perspectives on the Development
“Politically, the review of APM Terminals is good for President Boakai because it was a key campaign promise, but economically, it is even more important as it will align the concession with current trade and socio-economic realities,” said Ambulah Mamey, a Practitioner in International Development.
Establishment of the Review Committee
Following APM Terminals’ agreement to the review, President Boakai established the APMT Joint Review Committee with the following structure:
- Chair: NPA Managing Director
- Co-chair: APMT Liberia Managing Director
- Members: Ministry of Justice, National Investment Commission, and President Boakai’s Economic Advisor Morley P. Kamara
- Representative: APMT Headquarters
The committee has already met to finalize the Terms of Reference and initiate the review process.
APM Terminals’ Role in Liberia’s Economy
As a subsidiary of Danish shipping giant Maersk, APM Terminals operates the container terminal at the Freeport of Monrovia, managing:
- Cargo handling operations
- Terminal management
- Port logistics infrastructure
Since 2010, the company has invested in:
- Modern container handling equipment
- Terminal expansion projects
- Digital automation systems
Controversies and Criticisms
Despite these improvements, the concession has faced criticism regarding:
- High service costs
- Revenue-sharing terms
- Limited employment opportunities for Liberians
Vice President Jeremiah Koung, while serving as senator, was particularly vocal: “The law gives too much leverage to APM Terminals. It allows them to change tariffs at any time, and worst of all, this concession cannot be amended until after 25 years.”
Broader Port Concession Reforms
The Boakai administration has extended its review efforts to other critical port agreements:
1. Global Tracking and Maritime Solutions (GTMS)
- Government revenue share increased from 3% to 40% (first 5 years), then 45%
- GTMS now required to pay all applicable taxes (including 20% corporate tax)
- Reduced fees for port users (45ft container: $236.25 → $213.75; 20ft container: $130 → $95)
2. Marine Services Agreement
- Government royalty increased from 15% to 20%
- Added indigenization clause for Liberian workforce development
- Five-year plan for full local operational control
ArcelorMittal Liberia Concession Under Scrutiny
The review initiative extends to Liberia’s mining sector, with the ArcelorMittal Liberia (AML) concession now under examination. NPA Managing Director Dukuly emphasized: “We will work with other stakeholders to ensure the new agreement explicitly outlines AML’s obligations for port infrastructure use.”
Administration’s Strategic Approach
These renegotiations represent a comprehensive effort by the Boakai administration to:
- Align long-term agreements with current economic realities
- Ensure fairer distribution of economic benefits
- Establish precedents for future concession reviews
As Managing Director Dukuly stated: “President Boakai’s mandate to the NPA is clear: review concessions at the port to ensure Liberia gets its fair share.”
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