Consolidated Shipping Agencies Ltd. also known as ConShip is a wholly owned Ghanaian company and one of the leading freight forwarding and logistics companies in the country making significant strides in the oil and gas industry and other allied industries.

Founded by Dr. M. C. Vasnani in 1996, ConShip joined other Indigenous Ghanaian companies to take on opportunities in the upstream petroleum following the discovery of the petroleum resource in 2007. Currently he leads a workforce of over 200 Ghanaians making varied contributions in industries including the upstream petroleum industry. Correspondents from ULCM engage Dr. Vasnani to find out more about his journey to become one of the leading freight forwarding companies in the country.

ULCM: Good morning and thank you for granting us this interview.

Can you share with us how ConShip’s journey began?

Dr. Vasani: It’s a long story. I started working in the freight industry in 1981 employed as a partner in one of the companies in Ghana. In 1996, I left the company because I didn’t see much progress and my expectations were not met so I resigned and formed ConShip. I chose the name ‘consolidated’ because of my dream to consolidate as many agents and partners as possible. That led me to start this company in 1996. We have branches in Takoradi, Accra and Houston, Texas and a total workforce of 234 Ghanaians in the company.

ULCM: What are the challenges or constraints your company has faced over the years in relation to the oil and gas industry?

Dr. Vasani: Our first oil and gas business was in 1998 before Ghana discovered petroleum in commercial quantities. We had an invitation from a company in the USA to help them run their project in Nigeria, a major challenge at the time. We had to make a trip to the USA and understand what happens in the industry.

The first scary thing as a Ghanaian was having to do what we call the Foreign Corrupt Practice (FCP) Act. You had to go through due diligence and as a Ghanaian you wonder why you must disclose all this information. That was a major challenge at the time- a requirement that improves your chances of taking your business to the international level.

Especially at a time when we needed international support to open doors for us.

Aside this, the oil and gas industry has many other challenges.

What has kept us going is passion for the job. I have always said if you love what you do you would do it to the best of your ability. Logistics is key, freight forwarding and understanding the international aspect of it. It involves a lot of travelling— exposing you to different cultures and perspectives. It’s interesting – once you have those you don’t want to stop.

ULCM: What opportunities did you see that kept you going and made you stay within the oil and gas space?

Dr. Vasani: Before the passage of the Local Content regulations or the establishment of the Commission, we had great opportunities as we were working for almost all the companies who were coming to work in-country. This has given us a competitive edge especially when bidding for contracts.

ULCM: That is very motivating. So, in terms of oil and gas operations, what does ConShip do and who are some of your major clients?

Dr. Vasani: We are an all-round logistics company where we provide freight forwarding, project support, vessel agency, and husbandry services among others. I would rather not mention names of companies, but we have worked with IOC’S, Service Providers, National Oil Companies and other industry players in the oil and gas space.

ULCM: With the promulgation of the local content regulations, in what ways have these regulations supported the ConShip business?

Dr. Vasani: Well, it has got its good and bad sides. The good side being promotion of indigenous companies’ participation in the industry. When it came up there was that notion that there should be a minimum structure of 90-10. Certain services in the industry have now been reserved local companies like us.

Other companies have built capacity over the years and believe that we can do more.

I believe the L.I. 2204 is very useful but it still needs to be fine-tuned. I know the upstream petroleum chamber, which I am a member of, is in discussions with the Commission to fine-tune certain areas of the regulations.

ULCM: This will be the last question. You have already touched on some aspects briefly. Do you have any suggestions that you could offer the Commission in terms of how we enhance the implementation of the local content regulations?

Dr. Vasani: Our biggest issue right now is the taxes. We know the country needs taxes. We appreciate how they have digitized it now and how it’s working. But when you have a country that has so many tax requirements, it’s challenging tax before profit, corporate tax, COVID tax etc.

A lot of people have gone ahead to invest in Takoradi–with Hotels, hospitality institutions, and the Technical Institutes which the Commission partners with and to expand in this sector, you require enough capital to own a facility which includes paying so much interest and taxes towards the industry.

One of the things also is that fine line between the Commission and Ghana Investment Promotion Centre (GIPC). For instance, GIPC says come in as an investor. The investor comes in, brings in half a million dollars, and given a tax break, tax concessions and more. The indigenous companies, in a year invest more than that amount and don’t get any concession. I might as well create an offshore company and come in as an investor. I suggest PC through its Local Content regulations helps to adjust the number of taxes that we service providers pay.

ULCM: Great. I think we have come to the end of our interview, Dr.

Vasnani and thank you very much for giving us your time this morning.

Dr. Vasani: You are welcome.