Introduction

Approximately 60% of the Papua New Guinea population resides on coasts, rivers, and swamps suitable for water navigation. The state-owned enterprise, PNG Ports Corporation Limited (PNGPCL), operates 16 large ports, 14 of which support both foreign and coastal shipping. Lae is the largest port, followed by Port Moresby. PNGPCL provides services on a commercial basis, but only two or three of the largest ports recover operating costs. Mining, construction, shipping and other private companies operate 11 or more additional ports. There may be as many as 400 additional community-owned and operated piers, jetties and landings supporting small craft use in remote communities.

PNGPCL insists on the confidentiality of its port traffic indicators.

PNG’s primary port, Lae, suffers from insufficient wharf space, limited storage capacity, and the absence of large-scale container handling equipment, while the country’s many loss-making ports have excess capacity. PNGPCL has expanded and improved Lae’s wharves and ADB is funding further expansion of the port to include a tidal basin providing sufficient capacity from 2018.

Coastal shipping services are comprehensive, employing almost 250 vessels, some of which are containerized. These ships operate between the 17 ports along the coastline of the mainland and the islands. International shipping lines operate regular freight services to and from South East Asia, Japan, Europe, New Zealand, the South Pacific and Australia.

In terms of operations management, equipment, infrastructures and operating companies,

• 6 out of 16 ports are able to host significant (as for the country) emergency operations: Buka, Kieta, Lae, Madang, Port Moresby and Rabaul
• The remaining 10 have sufficient infrastructures to act as intermediate operational hubs: Aitape, Alotau, Daru, Kavieng, Kimbe, Lorengau, Oro Bay, Samarai, Wewak, and Vanimo. Nevertheless, as their equipment is good but basic (forklifts, trailers) and in limited quantities, special attention should be paid before operating emergency activities in those ports

From a general point of view, Lae is the biggest port of the country in terms of volume of operations. It is also the one that has the best internal organization (Port Moresby port facilities being often congested), mainly relying on international operators with strong capacities. This is due to the already effective LNG projects ongoing on the Northern part of the Papuan Island.

Analysis of the Port Sector

Overview

The port sector of Papua New Guinea comprises 22 declared ports and many small wharves, jetties, and landing stages. Only the ports of Lae, Moresby, Madang, Kimbe, and Rabaul have appropriate port infrastructure and receive international as well as coastal traffic. Private organizations also establish and operate port facilities where government ports do not exist or where there are greater benefits. This is particularly the case for forestry, petroleum, mining companies, and some agricultural firms

 The fully state-owned PNG Ports Corporation Limited (PNGPCL) operates 16 of the 22 declared ports, including two ports operated by its agents. The other six declared ports are either being run by private entities or not operating.

 The PNGPCL-operated ports handle about 90% of international ships calling at PNG ports and 80% of PNG’s international and domestic cargo. The ports of Lae and Port Moresby alone account for more than 70% of the throughput of the declared ports.

Cargo Throughput

About 90% of vessel calls and more than 80% of PNG’s international and domestic cargo are handled at PNGPCL-operated ports. The increase in cargo handled since 2002 is noticeable. The ports of Lae and Port Moresby account for over 70% of the total throughput. Kimbe represents 8%, and Rabaul 6%.

Performance Indicators and Analysis

 The port sector is particularly critical for a country like PNG, a Pacific island country whose territory comprises the eastern half of New Guinea and 600 offshore islands. Of its 20 provinces, 15 are on the coast. More than 60% of the country’s 6 million people are widely dispersed across islands and coral atolls and along the banks of major rivers. There is no national rail or road network. Although 46 airports and numerous airstrips serve a network of scheduled, charter, and missionary air services, even to some very remote communities, air transport is too costly for any trips other than emergencies.

 Coastal trade, particularly outbound container cargo from Lae to other PNG ports, has been growing rapidly since 2001. Full outbound containers that year numbered 13,395 twenty-foot equivalent units (TEU); by 2005 they totaled 23,811 TEU, for an increase of 78%.

 In sum, the port sector has a crucial role in the social and economic development of PNG. It is important not only for the adequate and efficient handling of exports and imports, but also for the efficient movement of goods and persons between the remote and sparsely populated areas on the mainland and islands and the centers of economic activity.

Key airport information may also be found at: Worldaerodata website on Papua New Guinea

 Air travel is the single most important form of transport in Papua New Guinea, for the transport of humans and high density/value freight. Even today the two largest cities, Port Moresby and Lae, are only directly connected by planes.

There are 578 Airports / airstrips in PNG

• Airports - with paved runways
  • 2,438 to 3,047 m: 2
  • 1,524 to 2,437 m: 14
  • 914 to 1,523 m: 4
  • under 914 m: 1
  • total: 21

 Airports - with unpaved runways

• • 2,438 to 3,047 m:  
  • 1,524 to 2,437 m: 10
  • 914 to 1,523 m: 58
  • under 914 m: 489
  • total: 557

21 large-scale national airports managed by the National Airports Corporation (NAC) provide regular service for jet and large turboprop aircraft; 20 secondary airports are owned by provincial governments, and another 450 or more small-scale aerodromes are – since a revision of the legislation in 2007 - supposedly the responsibility of local communities, church missions, and businesses. This is a real challenge as those sub-national entities and private agencies do not have the means to maintain those – albeit crucial – facilities. As a result, those facilities are deteriorating. It is also more and more difficult to get updated information on those local airstrips, the private air operators being obliged doing assessments themselves. Other recent changes in the related legislation (for example concerning the responsibility of flights under 20 passengers given to the air companies, etc.) have a damaging impact on a sector that was previously well designed and operated.

The navigation equipment at most of the 21 national airports is old, unreliable and deteriorating. Rescue and fire-fighting services are only available at seven airports. Large aircraft introduced in recent years threaten to damage tarmac runway surfaces and endanger safety. Most national airports make financial losses on their operations. Losses from airport operations and a lack of national government funding have precluded investment in the air transport sector, although assistance from AusAID and ADB’s large Civil Aviation Development Investment Program (CADIP) MFF project is available.

The nation’s two regularly scheduled airlines focus on passenger service, carrying 1.57 million passengers to the 21 NAC airports in 2008. The flag carrier, Air Niugini, replaced smaller craft with F-100, Boeing 757s and 767s. While aircraft movements only grew 2% per annum 2005–2008, passenger traffic rose 7.5% per year. Airport safety, security, tarmac conditions, navigation equipment and communications failures often cause flight cancellations, raising airline operating costs and passenger fares.

 In terms of:

• Operations Management
• Equipment
• Infrastructures
• Operating companies actives in the facilities:

Only Jackson International Airport in Port-Moresby (POM) has the capacities hosting international operations. From a general point of view, POM is the biggest airport of the country in terms of volume of operations. It is also the one that has the best internal organization, mainly relying on international operators with adequate capacities. Except for POM, no other airport is able hosting international emergency operations; a special attention should thus be paid before operating emergency activities in any other airport.Lae has been designed as POM back-up airport but, in no sectors, could be compared to POM. This being said, a global upgrading plan exists for Lae airport, tending to improve all departments of the airport’s infrastructure (length and strength of the runways, passengers terminal) and to build new infrastructures (new cargo terminal, storage area, warehouse) In general, except maybe for POM, we recommend that any large humanitarian operation brings its own operations team and airport operational equipment to run major air, transitional storage and transhipment operations

More than 500 local airstrips exist in all remote regions of the country (complete list in Annex). As there are no centralized and updated information about the conditions of those local airstrips, we recommend:

• Using those capacities on a case by case approach
• Have a prior contact with the small transport companies regularly operating on those airstrips for ad-hoc updated information on specific airstrips
• The department of Public Works seems to be somehow in charge of those airstrips, but it was, up until now, impossible getting clear information

Civil Aviation

The Civil Aviation Safety Authority (CASA) regulates civil aviation in Papua New Guinea. The Minister of Transport establishes the rules that all:

• pilots
• engineers
• aircraft operators
• airlines
• air traffic controllers
• aerodrome operators

CASA checks that these rules are being complied with and have the power to take action if they are not. CASA monitors safety and security performance throughout the aviation community so that we can direct our safety efforts where they are needed most. CASA also produces safety publications and run safety seminars for the aviation community. The CASA establishes civil aviation safety and security standards, and monitors adherence to those standards. The CASA carries out accident and incident investigations and collates this material to establish an industry-wide safety picture. This becomes the basis of safety initiatives ranging from education campaigns to increased monitoring and regulatory action. 

PNG Air Services Ltd

Provider of air traffic services to the aviation industry and the flying public of Papua New Guinea, this includes airlines and other aircraft operators (including military and police) using PNG airspace. PNGASL delivers the following air navigation services:

• Air Traffic Control Services
• Flight Information  Services
• Communications, Navigation and Surveillance Services
• Aeronautical Information Services
• Search and Rescue Coordination Services

Papua New Guinea Air Services Limited (PNGASL) is located in Port Moresby, National Capital District. The Corporate Headquarter Office is located on the first floor of the Jackson’s Airport Domestic Terminal Building. PNG Air Services Limited has manned units at the following locations:

• Madang Airport;
• Goroka Airport;
• Tokua Airport, Kokopo;
• Kagamuga Airport, Mount Hagen;
• Nadzab Airport, Lae

PNG Air Services Limited also has facilities located at unmanned remote sites throughout the country.

4.1 Papua New Guinea Government Contact List

4.5 Papua New Guinea Airport Company Contact List

Procedures for Foreign Registered Aircraft

In PNG, the following requirements need to be applied, presented and approved before preposition of foreign registered aircraft:

Aircraft Registration and Certificate of Registration

1) Requirement for aircraft registration and certificate

• The person lawfully entitled to the possession of an aircraft for 28 days or longer shall, if the aircraft flies to, from, within, or over Papua New Guinea territory, register that aircraft and hold a valid certificate of registration for that aircraft from—
  •  the Director; or
  •  the appropriate aeronautical authorities of a Contracting State; or
  •  the appropriate aeronautical authorities of another State that is party to an agreement with the Government of Papua New Guinea or the Civil Aviation Authority of Papua New Guinea which provides for the acceptance of each other's registrations.
•  No aircraft shall be registered in or remain registered in Papua New Guinea if it is registered in any other country.

 B.    Application for registration and grant of certificate

• An application for registration of an aircraft and for the grant of a Papua New Guinea certificate of registration shall be made by, or on behalf of—
  • the person who is lawfully entitled to the possession of the aircraft for 28 days or longer; or
  • the person who, on a date specified in the application, will be lawfully entitled to the possession of the aircraft for 28 days or longer.

• The applicant shall complete form CAA 47/01, which shall require—
  • the manufacturer, model and serial number of the aircraft; and
  • the name and address for service in Papua New Guinea of the person specified in paragraph A.a. or A.b. and
  • such further particulars relating to the aircraft and the person specified in paragraph A.a. or A.b. as may be required by the Director— and submit it to the Director with a payment of the appropriate application fee prescribed by regulations made under the Act.]
    
    
• The Director may require the applicant, or, where the application is made on behalf of a person, that person, to produce all or any of the following, as may be reasonable in the circumstances:
  • evidence of the manufacturer, model and serial number of the aircraft:
  • evidence of the identity of the person specified in paragraph A.a. or A.b.:
  • a statutory declaration by the person specified in paragraph A.a. or A.b. that that person is, or on a date specified in the application will be, lawfully entitled to the possession of the aircraft for 28 days or longer.
    

C.    Registration and grant of certificate

• An applicant is entitled to have an aircraft registered and is entitled to the grant of a Papua New Guinea certificate of registration if the Director is satisfied that—
  • the aircraft is not registered in any other country; and
  • the person lawfully entitled to the possession of the aircraft for 28 days or longer is a fit and proper person in accordance with Section 50 of the Civil Aviation Act; and
  • the granting of the certificate is not contrary to the interests of aviation safety.
    
• If the Director is satisfied that an applicant complies with the requirements of paragraph (a), the following details shall be entered in the Papua New Guinea Register of Aircraft—
  • the date of registration; and
  • the description of the aircraft given in the application; and
  • the name and address for service of the person lawfully entitled to the possession of the aircraft for 28 days or longer; and
  • the registration mark allocated to the aircraft by the Director.

Complete information on Aircraft Registration and Marking can be found in PNG Civil Aviation Rules - Part 47 -

Aircraft Registration and Marking - Effective 1 January 2004.

Air Operator – Certification

• An applicant for the grant of an air operator certificate shall follow the prescriptions detailed in PNG Civil Aviation Rules - Part 119 - Air Operator – Certification - Effective 1 January 2004.

Regulated Air Cargo Agent – Certification

• An applicant for the grant of a regulated air cargo agent certificate must complete form CAA 109/01
• And follow the prescriptions detailed in PNG Civil Aviation Rules - Part 109 - Regulated Air Cargo Agent – Certifications - Effective 1 January 2011.

Foreign Air Operator – Certification

• An applicant for the grant of an air operator certificate shall follow the prescriptions detailed in PNG Civil Aviation Rules - Part 129 - Foreign Air Operator — Certification - Effective 1 January 2004.

Other Legislation

• Other legislation texts can be found on http://www.casapng.gov.pg/Legislation.html
• In case of emergencies, CASA team will bring strong support to the humanitarian operations and facilitate the different processes in order not to delay the operations 

Additional Information:

Papua New Guinea Air Operator – Certification

Papua New Guinea Foreign Air Operator — Certification

Papua New Guinea Regulated Air Cargo Agent - Certifications

Papua New Guinea Aircraft Registration and Marking

4.1 Papua New Guinea Government Contact List

The land transport system comprises the national road system (8,762 km), provincial (approximately 8,100 km), and perhaps another eight thousand district, local and other roads, and eight hundred bridges. The national road include 3,335 km of designated “roads of national importance,” often called “priority roads,” and the focus of most maintenance and improvement efforts. There are 2,647 km sealed roads, almost all in the national system. Central Western Highlands, Eastern Highlands, East Sepik, Madang and West New Britain have the most extensive networks. Apart from the Highlands Highway linking Lae with Goroka, Kundiawa, Mount Hagen, Mendi and their hinterlands, most of the national network is discontinuous, serving the relatively well-developed areas around the main commercial centers. The poorest parts of the country are the most poorly served by the road network.Geographic features, most noticeably several very large rivers, divide the road system into several distinct networks. The road system’s length has not increased since 2000. The government’s current policy is to improve the existing road network, rather than expand it (expansion would deny maintenance funds to existing roads and result in a net system loss. Landslides, floods and other natural disasters are frequent, necessitating repeated emergency works. Roads conditions are generally not good, but the Department of Works (DOW) has made considerable progress in maintaining, rehabilitating and upgrading national roads. The length of national roads classified in “Good” condition (according to the DOW’s RAMS database) rose from 17% in 2004 to 32% in 2010. Today, 48% of the priority roads are in good condition.

There are no reliable up-to-date traffic counts. In general roads are confined to major centres with limited inter town highways. Due to a lack of regular maintenance, some highways and most of the feeder roads have deteriorated to such an extent that they are only accessible by 4wheel drive vehicles. The smaller feeder roads which link the main roads are mostly unsealed and in the rural areas the traditional bush tracks are still the only roads available.

The main highways are:

• The Okuk Highway (formerly Highlands Highway): Runs from Lae through to Goroko, Mt Hagen and Madang
• Hiritano Highway: Runs from Port Moresby through to Kerema
• Magi Highway: Runs from Port Moresby through to Aroma coast

There is no road connection between Port Moresby and the Highlands and the MOMASE region (Morobe, Madang and Sepik provinces). Other roads link major towns in several islands, like in New-Britain. Here also, it is extremely difficult receiving updated and comprehensive information from a centralized agency. The only land border crossing is between Vanimo in Sandaun Province and Jayapura in Papua Province (West Papua), Indonesia. This border (PNG 9am-5pm, Indonesia 8am-4pm) is open and operating pretty smoothly, but it has a history of closing at short notice so check in advance.

Urban Transport

Traffic levels are very low: 74 percent of the national network carries less than 500 vehicles per day and 89 percent less than 1,000 vehicles a day. Traffic on the provincial and lower-level networks is much lower.

Rural Transport

The impact of deteriorating accessibility on life in rural communities is evident in lower standards of health and education, declining availability of goods and services, and high-cost and unreliable transport services. Whereas in the past people could carry a basket of vegetables or bag of coffee for market to the nearest road-head knowing that a transport service will be available there, they now risk finding none available and their produce going to spoil. The sick can no longer be assured of access to a clinic or hospital, and the medical services available there have deteriorated too, partly due to the increased costs of transport. Accessibility standards are declining. Already some 35 percent of the population lives more than 10 km from a national road and 17 percent from any road at all, and the roads are getting worse. As roads have deteriorated, transport costs have increased from 40 and 60 percent in real terms. Fewer market opportunities are available and people can afford fewer daily necessities. People are often reverting to a subsistence living or deserting the rural areas for the limited prospect of employment in urban centres. Health and education indicators are generally falling and government control is weakening.

Roads, especially in rural areas, are in poor condition. Other common safety risks on PNG roads include erratic and drunk drivers, poorly maintained vehicles and over-crowded vehicles. The rugged topography comprising large and complex mountain chains, swamps, rivers and remote islands, presents a daunting challenge to transport. There are currently no roads linking the capital with the north coast or Highlands where the majority of people live. Internal transport is by air and sea; this makes the movement of goods and people expensive and constrains the development of internal markets.

Furthermore, much of the existing infrastructure is quickly deteriorating as a result of insufficient maintenance. The main highway from the northern port of Lae into the populous highlands region is frequently impassable. The costs of poor road maintenance are borne by truck operators in high operating costs and insurance rates. Huge donors funded infrastructure maintenance and repair programs do not reach their objectives due to delays in implementation. The 8,700 km of national roads constitute the backbone of the road system. There are about 1,000 km of provincial and district roads that link provincial economic and population centres and provide access to the rural areas. Thousands of kilometers of minor rural roads built from 1950 to 1970, connecting rural areas with the main road networks, are badly deteriorated. About half of all feeder roads in the country have become impassable to any vehicles carrying significant loads. Sealed roads have degenerated to poor gravel roads, gravel roads have reduced to earth tracks, and some routes have closed altogether. By 2005, only about 37% of the overall road network (about 8,400 km) was in a maintainable condition (i.e., capable of receiving routine maintenance attention), and about half the network required some significant rehabilitation, restoration, or reconstruction to make the roads trafficable. Much of the past investment in road rehabilitation and upgrading had been lost through subsequent maintenance neglect. AusAID and ADB are giving significant support to the GoPNG to try to address this issue.

Please note:

• In recent decades, there has been no increase in the number of kilometres of paved roads
• Security constraints (attacks, crimes) are obvious using the main highways
• Those highways cannot reach the majority of the villages, even if not too far from the main highway journey
• Aair assets to reach the final delivery destinations from the highway’s intermediate hubs is advisable

Road Construction / Maintenance

Responsibility for roads is shared between the national government, 19 provincial governments and the National Capital District Commission (NCDC). At the national level, the Department of Works (DOW) has Offices of Works (POOWs) in the provinces and the National Capital District (NCD), each managed by a Provincial Works Manager (PWM). The PWMs are responsible for maintaining all national roads in their province. When funds are available – which is not often – this is usually done on a project basis (the work usually involves some rehabilitation) by local contractors, but most POOWs also have a small day labor force for limited routine activities. Development and maintenance of provincial roads, when done at all, are carried out by Provincial Works Units (PWUs) under the control of provincial governments. These units are quite small and have limited technical capabilities. Local rural and urban roads are managed by local or municipal administrations with very few resources.

Because of limited budgets, few new roads have been built in recent years, other than in urban areas. By default, priority has been given to emergency repairs and rehabilitation, the latter mostly with donor assistance. Following pressure from users and donors, and with a growing recognition of the economic costs imposed by poorly maintained roads and bridges and the significant benefits of preventive maintenance, efforts have been made to develop improved systems and procedures for asset management. At the same time, options for establishing a more reliable system for funding road and bridge maintenance have been reviewed.

Road Classification

Distance Matrix

The main highways are:

• The Okuk Highway (formerly Highlands Highway)
  • Runs from Lae through to Goroko, Mt Hagen and Madang
• Hiritano Highway
  • Runs from Port Moresby through to Kerema
• Magi Highway
  • Runs from Port Moresby through to Aroma coast

Road Security

Security Level: Bad

Roads, especially in rural areas, are in poor condition. Other common safety risks on PNG roads include erratic and drunk drivers, poorly maintained vehicles and over-crowded vehicles.

Weighbridges and Axle Load Limits

Weighbridges are found on the main highways. The most important transport companies and factories in the country also have their own weighbridges.

• All combinations other than those listed need application to the nearest NRA offie.
• During controls, should the vehicle gross exceed the maximum weight authorized, the liquid allowance will be lost

Bridges

There are +/- 800 bridges classified on the national system, often in a very bad condition (except on the Highlands Highway). For example, nearly all the bridges on the Bougainville Northern coast highway are broken since years

Papua New Guinea Transport Corridors

Overview

Due to inadequacies of the road network and the expensive air services, sea transportation remains the most practical means of servicing the coastal and island locations. There are scheduled passenger ships that run between Lae, the Momase and the islands region. There are also scheduled passenger services between Bougainville and the islands.

Inland Waterways

According to 2003 data, the inland waterways are thought to amount to some 10,940 km. Under the National Transport Development Plan 2001-2010, the main aims were to:

• Fund the economically feasible costs of maintenance, rehabilitation and construction of maritime facilities and the improvement of Navaids and boat services.

• Establish a sustainable program to maintain the existing transport infrastructure such as ports, wharves and jetties, ramps, landing areas, pontoons and warehouses.

• Ensure that half the total expenditure in water transport is devoted to maintenance of facilities and assets.

Just as for roads, budget allocations have not kept pace with needs. There is a substantial backlog to be dealt with.

Coastal Shipping

With its dispersed population, Papua New Guinea’s coastal shipping services takes on special significance in providing access to rural communities. Innumerable small wharves, jetties and beach landings provide the basic infrastructure for maritime services, but the majority of these is in poor condition and carries very little traffic.

The ports serving Port Moresby, Lae, Madang, Kimbe, and Rabaul carry international and coastal traffic and have a reasonable level of infrastructure, but lesser ports, ranging from those at Wewak, Kavieng, Oro Bay and Alotau to mere timber jetties and beach landings, provide only a basic service for coastal traffic and are often unusable in bad weather. Many landings involve loading and offloading over the ship’s side from/to small village “banana” boats and canoes. Madang, serving many small coastal vessels, and Kimbe, serving agricultural exports, are the most frequently visited ports, but Port Moresby, Lae and Rabaul handle the most cargo; most imports pass through Lae and Port Moresby.

Lae is the main import/export point for the populous Highlands region, the goods moved from/to the port by road. Annual throughput by the major ports has been growing at about the rate of population growth with import/export tonnages (increasingly containerized, but also including a growing logging trade) accounting for about a third of the total and most of the growth. Passenger cruise visits have started to grow, albeit from a low base. Coastal passenger operations are significant between the larger centers like Lae, Madang, Kimbe, Kavieng and Buka, but recent falls in traffic have led to some service reductions. Community-based services also extend to many smaller coastal villages, often in small, open, over-loaded craft operating over stretches of open sea without safety facilities or navigation aids.

Coastal services are of several types provided by: primary shipping lines, with scheduled or semi-scheduled services mostly focusing on the major ports; secondary shipping lines, also providing scheduled or semi-scheduled services to a mix of large and small ports; specialized, smaller and often regional shipping companies providing specific services to industry, including charters; operators of small commercial craft providing general goods and passenger services; community based organizations providing semi-commercial services mostly for their own members; and subsidized provincial government services.

For the most part, even between Port Moresby and Lae, the coastal routes are poorly-equipped with navigational aids (Navaids). The Fly River and its estuary is an exception; there, Navaids are maintained by private mining and oil companies. Elsewhere, local companies and community groups operate largely without charts or Navaids and rely on the local knowledge and skills of their ships’ masters. Sudden storms, mangrove swamps, shifting mud and sand banks and floating obstructions make journeys hazardous. Simple, low-cost Navaids would significantly reduce the risks involved.

Sea Transport Routes

To Provincial Ports

• • Lae,  HUB
  • Port Moresby
  • Aitape,
  • Alotau,
  • Buka,
  • Daru,
  • Kavieng,
  • Kieta
  • Kimbe,
  • Lorengau,
  • Madang
  • Oro Bay,
  • Rabaul
  • Samarai,
  • Vanimo,
  • Wiewak
    

The Community Water Transport project

The Community Water Transport Project is engaged (inter alia) in establishing and supervising the operation of subsidized transport services by water to remote communities that do not currently have adequate cash incomes to support fares for transport at the level of full operating cost recovery. A scheme of voluntary commercial contracts between the Government of PNG and private shipping operators to provide subsidized shipping has been devised and is being established in phases.

The phase 1 franchises, let in 2009 for a period of 3 years, consist of the following routes:

• Sepik River in East Sepik Province
• Huon Coast of Morobe Province and Oro Province
• South Coast of East and West New Britain
• South East Coast of New Ireland
• Ramu River in Madang Province
• Western Province

Depending on the success of these initial franchises and also the funding generated by the Community Water Transport Trust Fund, supplemented by GoPNG budgetary appropriations, a second and subsequent phases may be possible. Routes to be served in the second phase of franchises would be expected to cover additional remote communities that were not included in Phase 1.

4.1 Papua New Guinea Government Contact List

Papua New Guinea Storage Assessment

Except the ones belonging to the private transport companies (for short term operations) and the Defence Forces, there is nearly no warehousing capacity existing in the country. While the transport companies use their storage capacities to the upmost, some may be keen to provide ad-hoc support in time of emergencies. The only storage capacities found in the country are using containers. The containers are bought, most of the times.

This can be explained by various reasons:

• • The security issues, as warehouses are more fragile than locked containers
  • The costs, as the costs related to the whole building industry in the country are beyond understanding, nearly nobody is able paying for a proper warehousing system

Commercial Storage

The PNGDF Storage Capacity
The PNGDF has several storage capacities (usually huge warehouses) at central hubs locations (Lae, POM)
The PNGDF has a history of providing services to the humanitarian and development agencies (AusAID) for free temporary storage. During emergencies, upon prior agreement with the GoPNG, agencies may thus use those facilities.
Contacts with the authorities for accessing the PNGDF storage capacities need to go through the NDC.

Storage Used by Humanitarian Organizations

During Emergencies
Beyond using the very few PNGDF capacities at central hubs locations, a real problem of storage capacities exist in the country. In order to address that, and having noticed that airports areas are usually very large and secured, discussions held with the National Airports Corporation indicate that a real possibility exist to set up MSUs in airports premises. This will need to be further made official.

Contingency Stocks
Only a few agencies have a kind of pre-positioned stock of humanitarian items (= Contingency Stocks). Usually those agencies have 2 to 4 containers full placed in various locations in the country, most of the time close to the agency’s operations area.

Cold Chain

All PNGPCL managed ports have power capacities for reefer containers. However, this service is not intended for long time storage. As for any other goods, ports authorities allow only 5 days free storage in their premises.
The GoPNG is managing a network of central and areas “medical stores”. These stores are located in several key locations (Madang, Lae,Port-Moresby) and benefit from cold storage facilities. Humanitarian agencies may, upon prior agreement with the Department of health, access those facilities.

Papua New Guinea Milling Assessment

Approximately 150,000 tonnes of flour are sold each year in the PNG flour market. The market structure consists of:

• Two companies who mill and distribute flour products ;
• A small number of companies who import flour, packaged flour and premixes, including products for commercial consumers; and
• Wholesalers and retailers who supply flour products to both commercial and household consumers.

The 2 flour manufactures in PNG import raw wheat. They, then, mill, pack and distribute flour products in the markets. In addition to the two manufacturers there are a number of importers in PNG, normally wholesalers that import flour products and premixes for distribution around the country.

The two flour millers in PNG are:

• Associated Mill Limited (AML) - a subsidiary of Goodman Fielder PNG
• Niugini Tablebirds Ltd (NGTB) - a subsidiary of Mainland Holding Limited.

Both flour manufacturers have their products distributed nationally. AML has mills in Port Moresby and Lae. NGTB has a mill in Lae. Customers of the mills purchase their flour at the factory gate price and then arrange for transport to their main distribution points, thereby incurring further on-costs such as additional sea and/or road freight charges. Under the 2005 price monitoring arrangements, these transport costs were monitored by the Commission. The freight on-costs from the main distribution points to more remote areas were not monitored by the Commission.

Further generic information on the milling sector of PNG can be found in the following document:

Papua New Guinea Milling Assessment Additional Information

Milling Company Associated Mills Limited

AML is a subsidiary of Goodman Fielder PNG which owns 74% of AML’s shares. The remaining shares are held by Melanesian Trustee Services Limited on behalf of the Pacific Balanced Fund. AML operates 2 mills, one in Lae and another in Port Moresby. AML distribute flour products nationally under the brand names “Flame” and “Mothers Choice.” Their products come in pack sizes ranging from 1kg to 50kg and are mainly sold for household use and commercial use such as biscuit companies, food processors and bakeries. AML provides employment to a total of more than 520 Papua New Guineans both in Lae and Port Moresby.

Milling Company Niugini Tablebirds

NGTB is wholly owned by Mainland Holdings Limited. The company established a flourmill in Lae in 2000 and produces flour products under the “3 Roses” brand for national distribution. In addition to flour production NGTB operates other business such as chicken farming and processing and the production of animal food products such as stock feed and chicken pellets. NGTB’s whole operation is estimated to employ 1,000 Papua New Guineans.

Like AML, NGTB mills and sells flour in pack sizes ranging from 1kg to 50 kg bags for the household and commercial markets however NGTB’s main market is commercial users who buy larger pack sizes. Only Niugini Tablebirds mill was assessed. Beyond the flour mill, Mainland Holding has a comprehensive range of products and services:

• Chicken production
• Stock feed for animals
• Fresh table eggs production
• Crocodile Farm
• NG Coffee, Tea and Spices company

Niugini Tablebirds are also involved with the following:

• Abco truck transport company
• Fuel Electrical Power plant
• Properties Management
• TPL : Bag production company

59 people employed in the mill, additional in the transport and bagging companies, + marketing and sales department. Total for Mainland Holding +/- 1,000 people.