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.