MONROVIA – The Liberian government has secured an overhaul of the Cargo Tracking Note (CTN) contract with GTMS Liberia Inc., slashing fees, reclaiming revenue control, and boosting its annual earnings by over US$6 million in what officials call a major win for national interest and economic sovereignty.
The renegotiated agreement— which took effect on April 1, 2025—comes after months of intense scrutiny by the Liberian Senate, the Ministry of Finance, the Liberia Revenue Authority (LRA), and the National Port Authority (NPA), following widespread public concern over the unfavorable terms of the original 2018 contract.
Under the new deal, CTN charges have been reduced by up to 10 percent across various cargo categories. More crucially, all revenues from CTN services will now be collected into a local Transitory Account rather than offshore bank accounts, putting an end to years of capital flight and enhancing government oversight of port revenues.
A Boost for Public Revenue
The revised contract eliminates the previous 55,000-container threshold that prevented the government from receiving any share of CTN fees until the service provider had met its volume requirement. With that clause removed, the government is now guaranteed 40 percent of gross CTN collections—set to increase to 45 percent after five years—while GTMS retains 60 percent.
This restructuring is projected to increase government revenue from the CTN system by more than 1,000 percent, yielding at least US$6 million annually, exclusive of taxes and other statutory obligations now imposed on GTMS.
No More Tax Holidays
In another major departure from the old arrangement, GTMS will no longer enjoy tax waivers. The company is now required to pay all applicable taxes in Liberia without exemptions, a move hailed as a long-overdue step toward fiscal fairness.
Empowering Liberians
The contract also introduces strong “Liberianization” measures. GTMS must ensure Liberian nationals occupy key managerial positions within six months of the agreement taking effect. Additionally, the company is obliged to prioritize the procurement of Liberian goods and services where they meet competitive standards.
Employees across the board will benefit from improved working conditions, including transportation allowances, insurance, and performance-based incentives.
Technology and Transparency
To strengthen port security and ensure compliance with international standards, GTMS is mandated to invest in modern technologies and provide real-time data to the LRA and NPA. This data will support efforts to combat money laundering, improve customs declarations, and enhance overall transparency in the country’s maritime trade.
A restructured Monitoring and Evaluation Committee has been set up to ensure the contract’s terms are upheld, with GTMS required to submit periodic operational reports and vessel tracking data.
Sovereignty Over Dispute Resolution
One of the most pivotal changes in the revised contract is the legal jurisdiction governing disputes. Unlike the previous agreement, which subjected Liberia to foreign arbitration under UK law, the new deal places all legal disputes under Liberian law, to be resolved by arbitration within the Republic of Liberia.
Corporate Social Commitment
As part of its corporate social responsibility, GTMS will contribute a minimum of US$100,000 annually to Liberia’s School Feeding Program and support initiatives in communities where it operates.
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