PNG Ports Corporation Limited operates the busiest and important ports which are the principal driver in the country’s economy.
From its 23 declared ports; 16 are operational and 7 non-operational. From the 16 operational, 2 are under Agency Management. These operational ports are: Port Moresby, Lae, Kimbe, Madang, Alotau, Rabaul, Oro Bay, Kieta, Buka, Vanimo, Lorengau and Daru. The two under agency management are; Aitape and Samarai.
These ports handle in excess of over 5.8 million tonnes of cargo annually- 100 per cent of Papua New Guinea’s entire seaborne trade and the main gateway to more than 300 scattered islands.
This network of ports is capable of handling certain conceivable type of cargo with room to expand and benchmark with other ports within the region. PNG Ports is backed by investment in its modern facilities and supported by an experienced and committed staff.
PNG Ports is a fully corporatised entity owned by the state and is a successor company to the PNG Harbours Board. The Independent Public Business Corporation (IPBC) is the sole shareholder; holds shares in the company on behalf of the state.
The overall management and operations of PNGPCL are dictated by the relevant port and shipping regulations as well as policy directives of the National Executive Council through the Ministry of State and Enterprises.
PNG Ports is also the sole provider of Pilotage services in Papua New Guinea and has pilot launches in the main ports. Plans are underway to expand these services to meet the increasing demand both in port piloting and reef piloting.
The company also provides the following services:-
- Berthage
- Wharfage
- Storage
- Administration of Stevedoring licenses
- Miscellaneous port related services
The regulatory body that governs port related tariff with the port services industry is the Independent Consumer and Competition Commission (ICCC).
Since its launching on the 13th November 2006, the transition of the PNG Ports Corporation Limited as we know it today had evolved from Papua and New Guinea Harbours Board (1963-1969), Papua New Guinea Harbours Board (1970-2002) and PNG Harbours Board Limited (2002-2006) and then PNG Ports Corporation Ltd.
PNG PCL is financially autonomous and is required to submit to the state annual financial statements approved by the Auditor General. Out of the revenue, the company must provide for all its operational and capital expenses. PNG PCL is subject to Government tax regulations. The company is also required to provide for a proportion of capital works expenditure to be met from revenue supplement by loans from internal sources negotiated either by the company itself or the Government.
The company’s new name and logo 2 years ago has certainly lifted the image of the organization to setting new directions including benchmarking against other ports within the region.
One of its recent achievements was when the company received an award from IPBC, as the “Best State Owned Enterprise” ahead of other major state owned entities.
With the prime responsibility among others to ensure that the social and economic obligations of the citizens of PNG are facilitated through its ports nationwide, the commercial entity has a shift in its objectives to be more customer focused in order to benchmark with other ports within the region.
A rapid growth is projected on the cargo throughput (volume) for both import and export at all ports throughout the country. The average total cargo volume will have increased from 5.2 million to 7.2 million tonnes by 2011. This excludes project cargo for new mining projects currently under exploration phase. The number of vessel throughput is also anticipated to increase by 2011.
These increases which are driven by population growth, economic growth and rising community expectations will thus, contribute to the company’s revenue growth.
Given the scenario, the vital role that has been entrusted to the Board and Management to perform in the development of the country, PNGPCL is faced with a daunting task to ensure its current existing infrastructure and operating/management practices will be capable to accommodate the projected traffic growth over the next five years.
Provided with the analysis of the environment within which PNG PCL will operate over that next five years, it has been “indicated that the most critical issue is to ensure that it has the system and facilities in place to accommodate that strong export-led growth that is anticipated”.
Administrative and operational mechanisms have currently been designed to enable the ports to grow and be the economic nerve centre for PNG. These mechanisms include the drive to continue its capital maintenance program to rehabilitate and /or overhaul its main ports throughout Papua New Guinea.
