Palau, situated east of the Philippines and north-east of Indonesia, consists of more than 300 islands stretching over 650 km of which only nine are inhabited. Palau, a Micronesian country, is divided into 16 states and has one of the highest standards of living of Pacific Island countries.

Palau faces a moderate degree of risk to natural disasters, and mainly experiences tropical storms, drought and tidal surges. Like other Pacific Island countries, Palau is particularly vulnerable to the impacts of climate change, including severe weather events and rising sea levels.

In December 2012, Palau was hit by Tropical Cyclone Bopha and while there was no loss of life, it caused extensive damage to coastal houses and infrastructure. Less than 12 months later, Palau was struck by Super Typhoon Haiyan in November 2013, devastating homes and infrastructure in the northern states of Kayangel, Ngerchelong and Ngaraard.

Despite Palau’s natural disaster risk, human-induced disasters have also affected the island nation. In September 1996, the Koror-Babeldaob Bridge, spanning Palau’s two main islands, collapsed suddenly, and in 2002, a report found that Palau's public water supply was contaminated due to a violation of public water standards.

In 2018, drought conditions have led to water restrictions around Koror and Airai State.

 

Disasters, Conflicts and Migration

 

For a more detailed database on disasters by country, please see the Centre for Research on Epidemiology of Disasters (CRED): https://www.emdat.be/index.php 

 

Seasonal Effects on Logistics Capacities

 

Palau averages a consistent 28-33°C temperature day and night, all year round. Climatic conditions relating to natural disasters could potentially cause damages to the logistics infrastructure, affecting the usability and availability of equipment.

 

 

Capacity and Contacts for In-Country Emergency Response

GOVERNMENT

The government disaster response structure is based around the permanent establishment of the National Emergency Management Office (NEMO) located near the National airport in Airai State. The NEMO monitors and coordinates all maritime and land-based disaster activities and responses. It acts with the counsel of, and in concert with the National Emergency Committee (NEC), made up of 24 directors and senior personnel from a range of government agencies.

The National Weather service (https://www.weather.gov/gum/Koror) updates climate information daily and makes this information available for public broadcasting and information service through the NEMO.

Due to the large number of maritime activities and responsibilities, NEMO coordinates with the US Coast Guard (based in Guam) for marine surveillance activities such as search and rescue and fisheries monitoring. Additionally, the Marine Surveillance patrol boat program also coordinates with NEMO and can be tasked in emergency response activities. Both the Australian and Japanese governments have each provided one patrol boat for Palau’s marine surveillance activities.

While there is a significant USAG based in Guam, along with US Navy and Airforce, they do not have any formal MoU mechanism to provide Palau with assistance in disaster situations. International military are not part of any response plan however, the US Goast Guard and the US Federal Aviation provide support to Palau in case of specific search and rescue operations or aviation disasters.

For more information on government contact details, please see the following link: 4.1 Government Contact List 

HUMANITARIAN COMMUNITY

The humanitarian community in Palau is small, with a UN Joint Presence Office and Palau Red Cross society being the longest- established humanitarian agencies. IOM has also recently established itself in Palau. UNJOP is made up of the UNFPA, UNICEF and UNDP.

There are a number of faith-based groups present in Palau who also provide community support and assistance during times of disaster.

For more information on humanitarian agency contact details, please see the following link: 4.2 Humanitarian Agency Contact List

 

 

The Government of Palau has 8 ministries within the executive branch of government.

Within each ministry, there are bureaus and divisions responsible for government administration of regulatory operations and responsibilities. These are as follows:

• Ministry of Justice

  • Office of the Attorney General

  • Bureau of Immigration

  • Bureau of Public Safety

  • Div. of Criminal Investigation/Drug Enforcement

  • Division of Patrol

  • Division of Fire & Rescue

  • Division of Corrections

  • Div. of Marine Law Enforcement

  • Div. of Fish & Wildlife Protection
    
    

• Ministry of Education

  • Bureau of Education Administration

  • Bureau of Curriculum & Instruction
    
    

• Ministry of Finance

  • Bureau of Budget & Planning

  • Bureau of National Treasury

  • Bureau of Public Service System

  • Bureau of Revenue and Taxation

  • Bureau of Customs and Border Protection

  • Information Systems Support Services
    
    

• Ministry of Health

  • Offices

  • Human Resources & Development Office

  • Human Preparedness, Policy & Research Office

  • Bureaus

  • Bureau of Public Health

  • Bureau of Nursing

  • Bureau of Hospital & Clinical Services

  • Bureau of Health Administration & Support Services

  • Medical Referral Program

  • Hospital Trust Fund
    
    

• Ministry of State

  • Bureau of International Trade & Technical Assistance

  • Bureau of Domestic Affairs

  • Bureau of Foreign Affairs

  • Public Defender’s Office

  • Office of Administration

  • Office of Protocol

  • Passport Office

  • EPFM Live Broadcast

  • Embassies & Consulates
    
    

• Ministry of Community & Cultural Affairs

  • Bureau of Ageing and Gender

  • Bureau of Youth, Sports, & Recreation

  • Bureau of Arts & Culture

  • Bureau of National Archives
    
    

• Ministry of Natural Resources, Environment & Tourism

  • Bureau of Agriculture

  • Bureau of Marine Resources

  • Bureau of Tourism

  • Protected Areas Network
    
    

• Ministry of Public Infrastructure, Industries and Commerce

  • Bureau of Aviation

  • Bureau of Public Works

  • Bureau of Land and Survey

  • Bureau of Commercial Development

  • Small Business Development Center

  • Palau Energy Office

 

The Government of Palau website can be found at http://palaugov.pw

 

Customs and Revenue

The Ministry of Finance houses amongst its 5 Bureaus:

- the Bureau of Revenue and Taxation, whose mission it is to collect revenue to fund government services, and national development programs and projects.

- the Bureau of Customs and Border Protection, whose mission it is to provide regulatory enforcement of the Customs Act, and to provide customs border force service at the main ports and airports. The bureau also protects the Palauan public by closely monitoring the Republic’s points of entry and the import and export of restricted and illegal goods.

 

Quality Assurance

Quality assurance for food and bio-security, including inspection services are the responsibility of the Bureau of Agriculture, under the Ministry of Natural Resources, Environment & Tourism. The Bureau are mandated under the Plant and Animal Control Act of 2002 to run these inspection services, and sampling for testing can be undertaken at any time, at any location, on all plant and animal goods. There is no laboratory testing present on Palau for food stuffs, fuel and other products; as such, testing is undertaken in nearby Guam or Singapore.

 

However, The Palau Environmental Quality Protection Board under Title 24 PNCA enforces regulations for:

(1) Earthmoving, (2) Marine and Fresh Water Quality, (3) Toilet and Wastewater Disposal Facilities, (4) Solid Waste Management, (5) Pesticides, (6) Public Water Supply Systems, (7) Environmental Impact Statements, (8) Air Pollution Control, and (9) Ozone Depleting Substances

 

Pre-shipment inspection for goods only applies to the commercial export of fish, as there are no other exports from Palau. Vessel and container arrival inspection services are provided by the Department of Biosecurity at the point of entry in Palau.

Laboratories in Palau

As stated, no laboratory testing facilities exist on Palau. If international testing services are required for quality and standards verification, calibration and certification of all goods, SGS and Intertek in Guam are commonly used. However, water quality testing is undertaken by the Department of Public Works.

For more information on regulatory departments and quality control laboratories’ contact details, please see the following links:

4.1 Government Contact List 
4.3 Laboratory and Quality Testing Company Contact List

Also see Annex 5.1

The Ministry of Finance encompasses the Bureau of Customs and Border Protection. The Bureau has a mandate to implement the collection of revenue and to secure Palau’s borders from illicit trade and other criminal activities, whilst facilitating legitimate trade and protecting its unique environment.

Customs activities at the points of entry are professional and thorough with a central customs database for recording and processing the importation of all goods into Palau. All processing for customs clearance must go through this database to be assessed and recorded. The Bureau has offices and inspectors at both the Palau International airport and Malakal Port – the two international points of entry.

Bear in mind that for tax exemption requests, the Ministry of State is the government entity that facilitates and evaluates any request for exemption for the import of humanitarian goods.   

 

Duties and Tax Exemption

 For contact information regarding government custom authorities, please see: 4.1 Palau Government Contact List

Emergency Response

Procedures during emergency and non-emergency times do not differ. There is no national legislation or regulation, neither for streamlining the exemption process at such times, or providing a blanket exemption to organisations who may be permanently registered and present in country.

 

 

Exemptions to Regular Regime (Non-Emergency Response)

The procedures for tax exemption during non-emergency times are reviewed on a case-by-case basis through the Bureau of Customs and Border Protection and through the Ministry of State.

For government legislation items 5 & 6 of the Palau customs regulation, see Annex 5.1.

Specific goods funded by foreign aid programs, and imports for the purposes of humanitarian assistance will, upon the request of the Ministry of State (to the Bureau of Customs and Border Protection) be granted an exemption. No standing agreement or legislation exists relating to the automatic blanket exemption of goods for use by humanitarian organisation either permanently registered in country or temporarily responding.  It is exclusively up to the importer/consignee to apply for an exemption. There is also no legislation or regulation for streamlining the process. However, tax and duty exemption will be provided and considered as a priority during times of disaster.

For more information see: http://www.palaucustoms.org/service_01_1_detail.aspx?sn=3fcc1157-16cc-432c-97c4-319c7cdbd168

 

 

Exemption Certificate Application Procedure 

 

Exemption Certificate Document Requirements 

 

Customs Clearance

General Information 

 

Customs Clearance Document Requirements

 

Transit Regime

All goods coming into Palau must come either through Malakal Port or through the Palau International Airport. Neither the port nor airport have bonded facilities to accommodate transit goods. Sealed containers (sea freight) that are proposed for transit purposes could, with prior approval of the port operators and customs, be considered on a case-by-case basis during exceptional circumstances. Applications would need to be made to the Director of the Bureau of Customs and Border Protection at Malakal.

 

Port Overview

The Port of Malakal is the main port of Palau, and is situated on Malakal island, adjacent to Koror Island. The port is situated in a protected lagoon area and is serviced by shipping companies Kyowa, Matson Navigation and PIL/ Mariana Line routes from Guam and Asia. The port has two main docks, each able to handle vessels up to 500 ft in length. Access to the port is via channels through the outer reef. There are 2 docks of 164m and 154m respectively with a safe draft of 9m and with a self-imposed draft of 7m.

The port is owned and operated by a private company who also undertakes all terminal services and cargo handling. Freight movement is predominantly containerised, with 200-400 containers received each month, and approximately 100 mt of bulk break cargo per month.

Malakal port lies adjacent to the fisheries port, owned and operated by Tan Holdings. This neighbouring dock facility is for the exclusive purposes of unloading fishing vessels and packaging for export, and does not handle general cargo.

Key port information can be found at: http://www.maritime-database.com

 

 

Port Picture

Gantry crane unloading containers                                                                                                Secondary dock with refuelling point 

Port Features:

• Main Gate and Security
• Main Dock
• Secondary Dock and refuelling point
• Offices BTTC Stevedores and Shipping Agents
• Customs Office
• Quarantine Office
• Transit Warehouse (Bulk Break and LCL Goods)
• Maintenance facilities
• Container Storage

 

Description and Contacts of Key Companies

Belau Transfer and Terminal Company (BTTC) is a private operator and undertakes all terminal services and stevedoring activities at the port. BTTC leases the port premises from the Koror State Government and is responsible for all activities and operations at the port, providing freight delivery services to customers.

For more information on port contacts, please see the following link: 4.4 Port and Waterways Companies Contact List

Port Performance

The Port of Malakal is the main shipping port in Palau. The port handles approximately 200 containers per month but this volume can double at peak times. 50% of the containers imported are for the 3 major supermarket chains: WCTC, Surangel and Payless. Approximately 20% of the containers are refrigerated. The port itself handles approximately 6-8 cargo vessels per month that are almost exclusively container freight; Kyowa line and PIL Eurasia/MIL lines provide scheduled services to Koror.

Container arrival per month varies depending on the time of year and infrastructure projects being undertaken. Historically, freight volumes increase during November to April, due to Thanksgiving and Christmas holidays. During major infrastructure programs, maximum handling has previously reached 500 containers per month, not including tonnage moved for bulk break.

Containers must all be unloaded by gantry crane, as no container cranes are available at the dock. Depending on the ships’ gantry crane and operator capacity, containers can generally be unloaded at a rate of 6-10 per hour. 

The port is generally not congested, and even at peak times, handling equipment availability has not caused any major bottlenecks. Port handling equipment is in a fair to good condition but only a small amount of equipment is available. 

 

 

 

 

Discharge Rates and Terminal Handling Charges

For information on port rates and charges, please see the following link: http://www.belautransfer.com/

 

Berthing Specifications

For more information see: http://ports.com/micronesia/malakal-harbor/

 

General Cargo Handling Berths

Port Handling Equipment

The port equipment is owned and managed by the private operator BTTC. The handling equipment is in good condition with two top loaders and a heavy forklift available. Smaller forklifts for movement of palletised freight are available and in good condition. The top loaders move all containers from dockside to storage, and load all tractor trailers for delivery. While 40ft containers are handled regularly, an ideal maximum of 20mt deadweight is requested due to limitations on the equipment handling capacity.

There are no tug masters and all containers are stacked and loaded directly onto the delivery equipment (being trailer chassis) by top loaders or forklifts.  BTTC maintains 5 prime mover/tractors for deliveries that are all in a fair to good condition.  

 

 

32 mt top loader and heavy forklift                                                                                                 42 mt top loader

 

Container trailers                                                                                                                                Prime mover/tractor for container delivery 

 

Container Facilities

While almost all freight moves through the port in containers, the port has no dedicated container facility and operates as a general port. Bulk break goods are stored adjacent to the secondary wharf and transit warehouse.

 

Container marshalling and storage area                                                                                         Container storage area dock side

 

 

Malakal port has no reefer stations for the siting and temporary powering of refrigerated containers. Unloading and dispatch from the port for customers with reefer containers (e.g. main supermarkets) are synchronised and planned, to ensure containers are dispatched to the consignees site directly upon unloading from the vessel. It is often the case that reefer containers are unloaded within 4-6 hours of discharge from the vessel.  

In case of emergencies, generators can be provided for temporary power solutions.

Customs Guidance

The Bureau of Customs, Revenue and Taxation (BCRT) office is located adjacent to the port gate entrance. The office houses customs inspectors whose responsibility it is to inspect all incoming goods and containers prior to clearance.

The main customs office is situated across the main road 1km from the port entrance on Malakal Island This is where processing of the payment of taxes and revenues is undertaken once goods have been inspected by the port officers. Customs officers inspect 98% of all goods coming onto the Port. It is becoming more common for the majority of containers arriving in country. This requires customs officers to be at the point of unloading, once delivered. BCRT has 8 customs inspectors as part of a mobile team to undertake this task.

The process for clearing goods is firstly to advise the main customs office at Malakal of incoming goods and provide all necessary documentation. All details of the consignment are then entered on the data base and once unloaded goods can be inspected by Customs inspectors at the port. Once the accuracy of content has been confirmed and all have been taxes paid (if applicable), the main office will authorise release.

The process can be completed within 1-2 days and during a time of emergency can be reduced to several hours.

For more information on customs in Palau, please see the following link: 1.3 Customs Information

Terminal Information

MULTIPURPOSE TERMINAL

There are no specialist facilities at the port, and the port operates as a basic general container and handler of bulk break goods. The port only operates ground handling equipment of top loaders and forklifts to move items once unloaded.  

GRAIN AND BULK HANDLING

There are no bulk handling facilities.

MAIN STORAGE TERMINAL

There is only one main storage warehouse at the port which is currently used for bulk break and LCL goods. Whilst the area is small, the space is available for the storage of goods in a disaster as a transit area.

 

 

 

LCL and bulk break goods in storage in transit warehouse                                                          Transit warehouse

Stevedoring

All terminal and stevedoring services are provided by a single, private company, BTTC. BTTC also provide services as a shipping agent for Kyowa and local transport services. BTTC Offices are located adjacent to the security gate opposite the Quarantine Offices at the port.

All ships operating at the port require gantry cranes to load/unload all container freight. The Kyowa line uses RoRo vessels for the shipment of vehicles which also fall under the responsibility of BTTC.

Stevedoring services are mechanical, as are terminal services; the labour component is for the unstuffing of containers. During an emergency, additional labour can be provided by BTTC if needed.

Hinterland Information

Containerised freight is moved out of the port by container trailers and prime movers by BTTC. BTTC has no side unloading trailers, therefore any containers being unloaded from the trailer require a crane to be used. This is charged at an hourly rate. BTTC has 40 trailers, 15 of which can handle 40’ containers.

Refrigerated containers are treated as a priority, as no reefer stations are available at the port. As such, prime movers and trailers are directly loaded for dispatch to customers, and the major customers unload the container in a matter of hours. For the most part, the trailers are returned well within the demurrage-free period.

Consignees have 7 days after vessel departure to unload containers. BTTC owns 5 x prime movers /tractors. Contact BTTC directly for demurrage rates.

 

Port Security

Palau has been a signatory to the IMO ISPS Code since 2011. The port is fenced, with access permitted through a manned security gate. All visitors to the port require photo ID which must be left at the security gate upon entry.

Appointments for meetings for first visits are essential, otherwise access is likely to be denied.

 

Aviation Overview

Key airport information may also be found at: http://worldaerodata.com/

Palau has only 3 airport/airfield facilities throughout the country. The main international airport in Palau is in Airai State, near Koror, and is operated under FAA and US air traffic control. There are also two small airfields located on the islands of Peleliu and Angaur to the South of Babeldoab. Both airfields are managed and operated by their respective states. 

The aviation sector in Palau is small and relies primarily on tourism. There are approximately 30 flights per week into and out of Palau.  Palau is an international tourist destination, and is serviced by United Airlines, Japan Airlines, Korean Air and China Airlines through international scheduled flights that all land at Palau International Airport.

Charter carriers also service Palau with Smile Airlines providing tourist charters from China. Boeing 737-600 are the most common type of aircraft used.

Cargo services are provided by United Airlines Cargo, as part of the almost daily scheduled route, and by Asia Pacific Air (APA), a subsidiary of Tan Holdings, who provide Air Cargo charter out of Guam. 

Domestic carriers are limited to small tourist charter airlines Belau Air and Pacific Missionary Aviation (PMA). PMA is based in Yap, in Federated States of Micronesia (FSM), who provide charter services to outer islands and around Palau if required.

The Main Palau International airport is regulated by the US FAA, and routinely undertakes operational and safety compliance reviews. The airport has two aprons and approved future improvements include:

• Hanger construction at North Parking Apron (Commenced)
• Fuel Banker installation at North Apron
• Main Terminal extension

For more information on government agency and airport company contact information, please see the following links: 4.1 Government Contact List and 4.5 Airport Companies Contact List 

Procedures for Foreign Registered Aircraft

Foreign Aircraft operating in Palau are separated under two different regimes for the purposes of registration. They are:
 1. Aircraft operating in Palau as a domestic service, and,
 2. Aircraft operating internationally but flying into Palau.

 

Aircraft operating on commercial domestic routes in Palau are required to register with the National Aviation Authority through the Bureau of Aviation. Application is up to public notice; over a 15-30-day period objections are determined and a ruling is made after the 30-day period.

In each case the carrier is required provide the following:

- Aircraft Operational Certificate

- Insurance

- Airmen certification

Once this documentation has been provided multiple landing application can be applied for through the Bureau of Aviation.

Please refer to link for information and documentation: https://skyvector.com/airport/ROR/Babelthuap-Koror-Airport

Palau has approximately 85 km of highways and approximately 36 km of unsealed roads. Driving is on the right and the speed limit is 40 km/h (25 mph).  

In 2017, resurfacing and repair began for the main loop road on Babeldoab under the Compact Agreement and was completed in 2018. The main loop road is therefore in excellent condition. Peripheral road, surfaced with gravel are also in good condition and regular maintenance continues to be undertaken on them. The specifications of the compact road construction, undertaken through the US Army Engineering contingent, follow the American Association and State Highways Transportation official policy of geometric design for highway and streets.

A small road network also exists on Peleliu and Angaur islands. Peleliu has approximately 4 km of sealed road from the port to the main town – the rest is unsealed.

The Babeldoab loop road is mainly inland and significantly above sea level, with the exception of the eastern side near Karaeru, where the road crosses a low lagoon area by causeway. Causeways between Koror Meyungs and Malakal are also the only road-access connections between the southern Babeldoab islands.

Koror Bridge

Access from the main island of Babeldoab to Koror is by way of a suspension bridge. This bridge collapsed in 1996 but was rebuilt and now acts as a critical link between the islands. Causeways also connect Koror to Malakal Island and to Meyungs west of Koror Island.

 

Suspension bridge connecting Airai to Koror.                                                                                 Causeway connecting Koror to Meyungs Island.

For more information on government contact details, please see the following link: 4.1 Government Contact List 

Distance Matrix

Road Security

The speed limit is 25mph/40kmph. Vehicles must slow down through villages and drive through at a respectful pace without loud music.  There are no issues with road security. Tourists pose the greatest road safety issues, due to the use of RHD cars driving on the right side of the road.

Weighbridges and Axle Load Limits

There are no weighbridges in the road network, nor are there mandatory or regulated mass limits for vehicles apart from the Koror bridge - vehicle configuration allows for the transport of 40ft containers, indicating that road surface loads are easily able to carry 50 mt without affecting the road surface.

The most common configuration for a heavy vehicle is a 3-axle prime mover, with a dual-axle trailer transporting a net load of 20-25 mt.

Road Class and Surface Conditions

Babledoab Island

Main Loop Road 

Main loop road is in excellent condition with a sealed surface. It is well-maintained and well-drained.

Peripheral Roads (to villages and communities)

Peripheral road off main loop road. Gravel surface is well-drained and regularly maintained.

There are no railways in Palau. 

Waterways and Inter-Island Overview

As with many North Pacific countries, the remote, outer island geographic nature means inter-island shipping or transport is the predominant form of people and freight movement between the islands. Palau itself is made up of 9 inhabited islands. With the majority of the population living on Babeldoab, the main Island of Palau. The states of Peleliu, Angaur and Kayangel all lie within 100 km of Koror. Only Peleliu and Angaur have their own ferry boats for regular inter-island services. The Islands of Hatohobi and Sonsorol in the South-West are the furthest inhabited outer islands and are serviced every 3 months by their states, who charter a local dive vessel. Local private dive companies operate a large variety of boats, from small 10-person skiffs to larger dive vessels.

Climatic conditions are the main limiting factor and bottleneck for the islands. Any high winds will affect ocean swell outside the lagoon, making seagoing voyages difficult in small boats.

For more information on government contact details, please see the following link: 4.1 Government Contact List

Company Information

The vessels operating between Koror, Peleliu and Angaur are owned and operated by their respective state governments. Koror state does not own any large nationally-available ferry or cargo vessels. The Hotohobie and Sonsorol state governments charter vessels for supply to their respective islands.

Due to the large tourism industry in Palau being based around diving, there are a large number and variety of dive vessels available for charter. This can range from smaller 22-seater passenger tenders to larger vessels with cabins and cargo area able to accommodate up to 50 people.

Sarangel and Sons, a major family-owned company with construction, wholesaling and retailing operations, operate their own tug and barge for transport of construction materials and equipment to the outer islands. This tug/barge configuration is available for chartering.

For more information on waterway company contact details, please see the following link: 4.4 Port and Waterways Companies Contact List

 

 

Vessel Pictures

              

Peleliu State Ferry Nippon Maru II                                                    Odesangel Dil  RoRo Ferry –Peleliu State 

         

Regina IV Angaur State Ferry                                                          Traditional Raft for lagoon fishing

Travel Time Matrix

 

 

Key Routes

 

 

Port Information

 

 

Outer Islands Ports and Docks

 

 

 

 

 

 

 

 

 

 

 

 

 

Storage Overview

Commercial storage is very limited throughout Palau. The main logistics infrastructure is located in Koror, however, there is only a small amount of space available. The largest identified space available is at Malakal port, with space in the port transit warehouse and on Malakal Island, which services the nearby port. Commercial fish processing operations adjacent to the Malakal port include refrigerated and general storage, however, this is a private enterprise and despite its large size, it is not available for general good storage.

There is no usable government warehousing facility. An old facility exists but is used as a yard for unused government vehicles, plants and equipment, and is not recoverable.

There were several warehouses and building structures observed around Koror which could be used as temporary warehousing. The current use of these facilities was not identified or confirmed but they appear suitable for temporary storage if available.

For more information on storage company contact details, please see the following link: 4.6 Storage and Milling Companies Contact List

Commercial Storage

There are only two identified commercial storage areas available in Palau, both which are in Koror.

  

Transit warehouse Malakal Port                                                                                                        Transit warehouse Malakal Port

 

CTSI storage warehouse                                                                                                                      Malakal Island Airfreight storage area of United Airlines at Palau International Airport

 

Cold storage area of CTSI Logistics Malakal                                                                                     Red Cross storage containers Koror High School

 

Storage Used by Humanitarian Organisations

The Red Cross Society maintains 3 x 20’ containers for use as storage in the grounds of the Koror High School. Other than some Red Cross office space, humanitarian organisation storage capacity is limited.

Public Sector Storage

There are no storage facilities or warehouses available through any government departments or public sector agencies. The procurement of items for the government is undertaken through direct purchase from suppliers, which are delivered to end user bases; as such, no government stores are needed or utilised. 

Cold Chain Storage

The only medical cold storage facility in Palau is based at the hospital for the storage of blood. CTSI Logistics operates a cool storage area using air-conditioning in which the temperature can be maintained at a minimum of 16°C.

Palau has no milling infrastructure. As such, all milling and fortification will need to be arranged and undertaken prior to the arrival of goods and/or cereal. 

 

Fuel Overview

Palau, as with many North Pacific Island countries, relies on fuel imports for the supply of general and specialist fuels, mostly from Guam and Singapore. The majority of fuel consumed in Palau is for power generation on the main islands of Babeldoab and Koror, and the outer islands to a lesser extent.

There are two main fuel suppliers in Palau, both of which are private. Blue Bay Petroleum owns and operates the former Mobil network and holdings, and Isla Petroleum and Energy holdings (IT&E) operate the shell license for Palau, Saipan, and Guam. There are a number of retail service stations operating independently that are supplied by Blue Bay, as well as other Shell company-owned retail stations.

Blue Bay Petroleum Inc. (BBPI) is a subsidiary of Tan Holdings Corporation, a diverse holding company in the Western Pacific. Tan Holdings is involved in a wide range of industries vital to island economies of the Western-Central Pacific. Blue Bay supplies UPL 87 and 91, Diesel Jet A1, and is the agent for mobile oils and lubricants.

Isla Petroleum and Energy Holdings, LLC (IP&E), is an additional retail and commercial supplier of petroleum products on Guam, Saipan and the Republic of Palau, with wholesale operations in the Federated States of Micronesia and the Republic of the Marshalls.

Both these companies provide fuel for power generation, which is supplied on a competitive tender basis, and also provide fuel for the retail market. IP&E supply to its own (Shell-branded) service stations, while Blue Bay supplies, but does not operate retail fuel stations, (although they are Blue Bay branded).

Supplies of Avgas are private, and Pacific Missionary Aviation (PMA) is the main importer. PMA holds Avgas supplies at the airport in an isotainer/transtainer. This stock is for OMA use only.

For more information on government and fuel provider contact details, please see the following links: 4.1 Government Contact List and 4.7 Fuel Providers Contact List

Information may also be found at: http://www.mytravelcost.com/petrol-prices/ which is updated monthly. 

 

Blue Bay Fuel Depot Malakal                                                                                                               IP&E Fuel Depot Malakal

 

Blue Bay Petroleum Tanker at the airport                                                                                       PMA Isotainers for Avgas at Palau International airport

 

Fuel Bunker for emergency services at the airport                                                                       Fuel Bunker (Jet A1) at the airport

Fuel Pricing

Fuel in Palau is unregulated and prices are loosely based on the local market, as well as on the Ex-Singapore bunker price.

Seasonal Variations 

There are no major seasonal variations, and scheduled supplies arrive every 28 days. Serious storm surges or broader climate changes can impact ocean travel and may cause delays. This however has historically been infrequent and only lasts a few days if it does occur.

Fuel Transportation

Fuel is transported around the country by road on the main islands of Babeldoab and Koror and by sea to the other islands. Fuel is transported by 20,000 lt tankers to all states and islands connected to the mainland of Babeldoab.

The Islands of Peleliu, Angaur, and Kayangel are supplied by the Peleliu state vessel Orngatanf II. The RoRo vessel is a double-bottomed RoRo barge with a 12,000 lt fuel storage capacity. It is the main vessel used for the transport of bulk fuel to the outer islands and supplies public utilities power generation.

Retail fuel stations do not exist on outer islands and fuel is bought over by way of 200 lt and 20 lt containers.  

Standards, Quality, and Testing

Fuel quality is not regulated nationally, but is self-regulated by the petroleum companies (Blue Bay) to ensure quality is provided by the supplier. Fuel is tested at the point of arrival at the wharf. Samples are sent to Guam for testing.

 

 

 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and the WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: The WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

Palau does not have any dedicated transport companies, and relies on local private companies who are involved in the ports, in construction, and in the retail sector throughout Palau. Transport assets are limited to smaller construction-type rigid chassis flat beds and tipper bodies. Additionally, there are dedicated container units for the delivery and movement of containers to and from the port. Since these are private companies using the vehicles, they would be negotiated on a case by case basis, as, and when required. CTSI Logistics are freight forward clearing agents, who, while they only have a few vehicles themselves, are able to locate vehicles for additional use outside of their fleet.

The Department of Public Works also maintains a fleet of construction and service-type vehicles, ranging from flat deck to tipper rigid vehicles. As government-owned vehicles, they are, and have been made available during times of emergency.

The larger companies include the port operations Belau Transit and Transfer Co (BTTC), Sarangal, and WCTC. BTTC and Western Caroline Trading Company (WCTC) are both multi-sectorial businesses with retail and construction operations. Transport assets in both companies are from their construction businesses so tend to be construction specific vehicles.   

There are also a number of smaller single operators who have 1-4 mt trucks available for hire for local use.

For more information on transport company contact details, please see the following link: 4.8 Transporter Contact List

 

 

 

 

 

 

 

 

1-2 mt Truck                                                                                                                                           CTSI 2 mt Truck

 

 

BTTC Prime mover for container trailers                                                                                         BTTC 4 mt flat deck with Crane

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and the WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: The WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

The population in Palau, according to the 2015 census, was 17,661 with over 100,000 visitors annually. As such, Palau relies on immigration to provide a large portion of the manual labour needed to meet tourism and hospitality demands.

According to the 2014 household Income and Expenditure survey conducted by the Office of Planning and Statistics, the average annual household income was 15,760 USD. Even though unemployment was 1.7% (2015), labour wages are relatively low, with basic rates starting at $3.50/Hr.  

The Government of Palau is the biggest employer in the country and pays higher wages than the private sector.

 

Telecommunications Overview

Palau telecommunications is a small, formerly  unregulated sector undertaking significant growth with the improvement and cost reduction in technology.

The Palau National Communications Company (PNCC) is a semi-government agency, operating the main mobile network. Due to tax concessions it operates at a competitive advantage to the two other players in the market, Palau Telecoms and the Palau WiFi Corporation.

Mobile services have taken over the share of the market from landlines, with both 2-3G cell services throughout Babeldoab, Peleliu, Angaur, and Kayangel Islands. The 3 main telecoms companies offer mobile coverage across the main islands. (See Annex 5.3)

Sim cards are easily available at PNCC in Koror and offer 3G and data options. There are pre-paid and post-paid options for both voice and data.

There are three data options for using a wireless hotspot network throughout Palau. Connection from hotel and restaurant premises is available, enabling users to connect via WiFi throughout Koror and the main Islands of Palau.

Satellite

There is no current limitation on the import and use of portable satellite phone systems in Palau.

For more information on telecoms contacts, please see the following link: 4.10 Additional Services Contact List 

 

Telecommunications Regulations

The Palau Division of Communications (PDoC) currently provides the regulatory framework for the communication sector. PNCC is the semi-government agency responsible for operating and regulating the main network in Palau.

There are currently no restrictions on the import and use of satellite phones in Palau nor on the import of VHF and HF radio equipment. While such goods may be for humanitarian use, the allocation of channels and frequency use is controlled and regulated. Permission must be sought to use VHF and HF systems, as well as to use the frequencies.

 

Existing Humanitarian Telecoms Systems

There are no existing humanitarian telecoms systems in place.

Internet Service Providers (ISPs)

At the time of writing, Palau Net is the main ISP in Palau.

 

Mobile Network Operators (MNOs)

PNCC is the only mobile voice network operator in Palau, whilst there are 3 options for mobile data networks.

For information on MNOs please visit the GSM Association website.

 

Palau is the 207th largest export economy in the world. In 2016, Palau exported $46.1M and imported $395M, resulting in a negative trade balance of $349M.

The top exports of Palau are Non-fillet Fresh Fish ($13.3M), Passenger and Cargo Ships ($6.85M), Unspecified ($783k), Scrap Vessels ($334k) and Other Sea Vessels ($260k), using the 1992 revision of the Harmonized System (HS) classification.

Its top imports are Refined Petroleum ($25.8M), Passenger and Cargo Ships ($19.6M), Surveying Equipment ($7.51M), Cars ($6.12M) and Unspecified ($5.81M).

The Republic of Palau is a collection of islands and borders Indonesia, the Philippines and Micronesia by sea. As such, many traditional foods including fish and coconut, taro and breadfruit products, as well as pork and chicken which are grown at the community level.

There is also a large reliance on imported foods. Food is retailed through 3 main supermarkets and smaller operations that provide wholesaling functions attached to their main retail businesses. These supermarkets – Surangel, WCTC and Payless – are the main food importers into the country. They can, along with other local entrepreneurs, import additional food stocks and other items as required.

There is no food processing industry in Palau with the exception of a tuna packing plant in Koror.

Supplies of bulk food will need to be imported to meet additional humanitarian requirements. The supermarket and hardware stores, given the diversity of products they import and the existing connections they have, will be able to import a wide range of goods for humanitarian response.

All other goods, including computers, white goods, vehicles, plants, equipment and all spare parts are imported both for the US and Asian markets.

The type and quality of goods to be imported however, will need to be monitored closely, as lower quality, cheaper goods are generally what is stocked throughout retail outlets.

 

For more information, see The Observatory of Economic Complexity – MIT (OEC): https://atlas.media.mit.edu/en/profile/country/plw/

 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and the WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: The WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

 

Additional Service Suppliers Overview

Due to the small population in Palau, service provision is basic with only a small number of companies specialising in each sector. While this has limited competitive advantages, most businesses have been long established and operate reliably and successfully.

For more information on company contact details, please see the following link: 4.10 Additional Services Contact List

Accommodation

Given that there is a strong tourism sector, there is a wide variety of hotel accommodation throughout Koror, and to a lesser degree also on Peleliu and Angaur. Accommodation ranges from 2-5 stars, is generally clean and tidy, and offers restaurant service. There is a wide variety of rental properties available in Koror.

Electricity and Power

Electricity is diesel-generated in all states, by the state governments with fuel; the fuel is supplied by Blue Bay Petroleum in Koror and the outer islands, and by IT&E in Airai, and is a priority supply. Generated electricity is based on the US system and is 110 Volts.

Financial Services

There are several main financial service institutions in Palau: Bank of Hawaii, Bank Pacific and Bank of Guam. Western Union offers wire transfer services, and the Bank of Guam and Bank of Hawaii offer banking and credit services. 

 

BANK OF GUAM

 

WESTERN UNION 

 

BANK OF HAWAII

Clearing and Forwarding Agents

The Main port is in Malakal; as such, all clearing agents in all states, and all stevedore and terminal service operators provide clearance services. However, primarily the shipping companies also offer forwarding and clearance services through agents; these are Palau Shipping for Matson’s Shipping, Euro lines for Marianas Shipping Lines, and BTTC who are agents for Kyowa.

Handling Equipment

Materials handling equipment is available on an ad-hoc basis for different business. However, Surangel Heavy Equipment Rental is the main rental company for heavy equipment such as cranes and forklifts.

The State Departments of Transport and Public works are also sources of lift equipment rentals such as forklifts and small cranes.

Postal and Courier Services

Palau Post Office is an independent agency that operates under the executive branch, and operates under the direction and supervision of the Postmaster General. Currently, its operations have increased and expanded from handling a few pieces of mail since its inception, to over two thousand parcels and letters processed daily. It provides services to a population of seventeen thousand people, and includes mail for business and commerce as well.

Most of its mail is flown in and out on commercial airlines on a daily basis, and the Postal Service also sends and receives surface mail on a monthly basis via commercial shipping vessels. The US Postal Service services Palau as a domestic destination. The main office is Pohnpei, and mail is brought twice a week by United Airlines to Palau.

Couriers:

USPS is handled by the Federated States of Micronesia (FSM) Postal Service.

DHL and FedEx also have agents in each of the 4 states.

DHL: http://www.dhl.com/en/gu/country_profile/service_point_locations_express.html

FedEx: http://www.fedex.com/fm/contact/index.html

 

Printing and Publishing

There are several companies that offer printing services including HBO printing, West Printing and Insta Prints.

Taxi Companies

There is only one taxi company in Palau: EDSB Taxi. Services are limited, as taxis are not easily available.

Taxis cost about USD 2-5 for a 1-3 km ride and USD 10-20 for a 5-10 km ride. Tourist prices are alive and well, and as such tourists pay higher taxi fares than locals.

 

Vehicle Rental

There are multiple vehicle rental companies throughout the state capitals, though it would also be possible to rent a private taxi or vehicle for a mutually agreed amount for several days, if not for a longer period.

Small vehicle rental cost approx. USD 30-50 per day.

Heavy Vehicle rental is also available through Sarangel Heavy Equipment Rental who rent tug and barges, crane trucks, dump trucks lowboys, loaders, rollers and bulldozers.

 

Waste Management and Disposal Services

The Department of Transport and Public Works are responsible for the collection of rubbish in each state. Essentially, all rubbish is landfill, often in dumps which are adjacent to a lagoon or nearby sea.

 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and the WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: The WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.