Category Archives: Transport

Boat operators warned

22/12/2017

Transport Secretary Roy Mumu is appealing to boat operators in maritime provinces to heed strong wind warnings that are being issued by the weather office during this festive period.

 

 

He said operators of banana boats should take precaution and refrain from traveling in the open seas during times of strong winds.

 

 

“My transport message is clear, let’s enjoy the festive season,” Mumu said.

 

 

Despite similar appeals being issued year in, year out, reports of missing boats continue in the maritime provinces.

 

The role of search and rescue under the transport sector falls under the National Maritime Safety Authority.

 

CEO of the National Maritime Safety Authority, Paul Unas, said one of its function is to coordinate maritime search and rescue.

 

“We are putting a lot of resources into improving that particular section.

 

“Recently the board has given its approval for NMSA to acquire and procure a search and rescue management capabilities for us to be able to improve our capabilities within that particular unit to respond to search and rescue coordination,” Unas said.

 

Transport Minister Wesley Nukundj said for the people living along the coast, going out to sea is an everyday event for them and the department needs to provide transport that is easily accessible to them.

 

“For me, banana boat is not the way to go. You have one skipper and you see 20 people on the boat and it’s not safe.

 

“Under my leadership, we want to try and phase that out, get a form of transport that is user-friendly.

 

“Banana boat is not safe,” the minister reiterated.

 

Author: Sally Pokiton

Source: Loop PNG.

K1m boat for B’ville islanders

22/12/ 2017
 Source: Loop PNG

Christmas has come early for the coastal people of Torokina and South Bougainville as they received a boat worth K1 million.

 

 

The boat will make access easier for transporting goods and produce like cocoa and copra between Torokina, South Bougainville and Buka town.

 

The people of the Autonomous Region of Bougainville (AROB), even after 20 years after one of the bloodiest civil wars known in the history of Papua New Guinea, are still picking up rather slowly on the normalcy known throughout the country – like the tradition of celebrating Christmas.

 

Around 20,000 lives were lost, millions of kina worth of properties destroyed and hundreds of millions of kina in revenue lost as a result of the forced closure of the Bougainville Copper Ltd mine.

 

The presentation of the boat is worth celebrating as this is a major burden lifted off for these people who use the Buka passage on a daily basis.

 

 

The other side of the Island, where the main local industry and business operations are often carried out, is only accessible by boat or ferry. This often requires at least a 10-minute cross over from Mainland Buka, from Kokapau.

 

In attendance for the presentation was AROB president John Momis, including other members of the Bougainville Provincial Government.

 

 

During a short speech, president Momis described Bougainvilleans as “proud people who can make a contribution to liberate them from any form of bondage”.

 

The vessel was purchased by South Bougainville Member Timothy Masiu using his electorate’s district services improvement program (DSIP) funds.

 

The boat was bought from businessman Sam Tasion and christened MV Sandyrose Toroka.

Author: Imelda Wavik

PNG Logistics To Benefit From Transport Infrastructure Upgrades

4th December 2017
[This Papua new Guinea economic update was produced by Oxford Business Group.]
 
 
In June the Asian Development Bank (ADB) approved $866.5m in funding for the upgrade and maintenance of the Highlands Highway, one of PNG’s main logistical arteries.
 
The project will see the rehabilitation of large stretches of the 1200-km route, improving connectivity and road safety. As well as ADB financing, funding will come from other development partners and the PNG government, bringing the overall investment to just over $1bn for the 10-year project.
 
The upgrade has national importance, as the highway runs from the main port of Lae through mountainous regions and into the Enga Province, serving around 40% of the population.
 
In addition to roadworks, the investment programme will support the establishment of logistics platforms and services for agricultural production, as well as help modernise other forms of transport infrastructure.
 
 
# Highway work to support logistics and export growth#
 
Improved access to the Highlands region should support the growth and competitiveness of the logistics sector, and back up government plans to boost exports.
 
At present, the imbalance between inbound and outbound cargo has been cited as a key contributor to slow turnaround times and the high costs endured by freight carriers.
 
Many planes and ships bringing goods to the country often leave either empty or carrying exports at volumes lower than their capacity, which affects local logistics costs.
 
According to the World Bank, the average cost of exporting goods from PNG was $1335 in 2014, the most recent year for which figures are available, considerably higher than Singapore ($460), Indonesia ($572) and Australia ($1200).
 
To address this issue, it is hoped that improvements to national transport infrastructure outlined in the long-term development plan Vision 2050 will pave the way for the cheaper transport costs, which could unlock growth opportunities in targeted agri-processing and industrial sectors.
 
“The upgraded Highlands Highway will not only improve connectivity, but also help drive inclusive economic growth,” David Hill, country director of the ADB, told OBG.
 
“Although more infrastructure investment is needed to improve transport links across the country, the recently approved 10-year Sustainable Highlands Highway Investment Programme will connect PNG’s Highlands – a region with a lot of mining activity and vast opportunities for agri-businesses – with the country’s most important port, Lae, which was recently upgraded by ADB financing.”
 
 
# Extraction industries continue to provide short-term logistics opportunities#
 
While government plans to improve infrastructure and diversify the economy are not expected to translate into benefits for the logistics sector immediately, in the near term operators stand to receive a boost from proposed projects in the extraction industries.
 
Such projects are major drivers of logistics sector growth, according to Mark Schell, country manager of international carrier DHL Express, who noted that logistics services experienced high levels of growth during the development stage of recent large-scale liquefied natural gas (LNG) undertakings, only to fall back to pre-construction levels once work was completed.
 
“When these large projects are under development you can expect growth of 10-40%; but once completed, the following year can see a reduction of 10% year-on-year,” he told OBG.
 
In terms of potential developments, French energy giant Total is reportedly looking to further develop reserves in the Elk-Antelope gas field, while ExxonMobil is assessing the feasibility of a proposed third LNG train at the PNG LNG project.
 
In the mining industry, the planned $2.3bn Wafi-Golpu copper and gold mine is expected to come on-line in 2020, and production at the Chinese-backed Frieda River copper-gold project in the Western Province is slated to start in 2024. 
Via: Loop PNG
 
 

Maru Confident Budget Will Sustain Economic Growth

Source: Post – Courier

 

BY GORETHY KENNETH

National Planning Minister Richard Maru is more than convinced that the 2018 Budget will enhance the preconditions for sustainable economic growth in the short to medium term.

Mr Maru said that for the first time in many years, the Government has increased the economic sector funding from 6 percent in 2017 to 15 percent in the 2018.

He said this confirmed to the Alotau Accord 2 to make economic growth the number one priority.

He said the aggregate 2018 Capital Investment Budget is K4,643.92 million. This shows an increase of 15.7 percent compared to the 2017 original budget appropriation. He said the Budget was strategically focused to invest in enhancing the preconditions for economic growth and prosperity, which will build on the remaining few years of O’Neill Government.

“This Government will mobilise necessary resources within the tight fiscal envelope to provide growth conditions to set the pace for future growth and development. The 2018 Capital investment Budget consolidate key interventions that will encourage business activities, generate employment, increase both export and tax revenues, replace import, and broaden and diversify our economic base strengthening renewable sectors and manufacturing.

“The commodity price fluctuations in the global market have had an adverse effect in our economy in the last three years and in my view we as Government have done very little in addressing the declining trend. If the global commodity price remains suppressed over the medium term with no new projects in the mining and petroleum sectors coming on stream over the same period, our country will continue to face fiscal constraints, prolonged current foreign exchange problems, which will affect the Government’s ability to effectively deliver public goods and services to our people.

“The 2018 National Budget provides the appropriate response of this Government to the current domestic and global economic challenges, focusing on the new measures to stimulate the broad-based economic growth while maintaining fiscal and macroeconomic stability.

“To arrest the declining trend in economic growth, some deliberate attempts were made by this Government particularly to ease the current cash-flow problem with the 100 Day Plan and also the proposed Bill on the Public Money Management arrangement. While these revenue raising measures are important, this Government is looking at sustainable growth measures.”

 

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Transport Funding Up By 2.1 %

 

BY MIRIAM ZARRIGA

Source: Post-Courier

The transport sector will receive K937 million, which is 2.1 per cent higher than the 2017 Supplementary Budget, and makes up 6.4 per cent of the 2018 Budget.

 

This consists of K642 million in capital and K294 million in operational expenditure.

 

The transport sector has always been the top priority spending of the Government’s capital budget.

 

As a critical enabler that provides access to markets and other essential services to the people, the sector gets the second largest funding allocation after provincial sectors because of the SIP funding.

 

According to National Planning Minister Richard Maru in the presentation of the Public Investment Program yesterday, the transport sector big ticket item in 2018 include the Jackson Airport runway upgrade for K50 million in preparation for APEC Leaders’ Summit in Port Moresby.

 

“The Government will spend K370 million to invest in critical roads, bridges programs, key missing link roads, and airports while loans and grants pick up over K340 million to complement the investment in the sector.”

 

Deputy Prime Minister Charles Abel said in his Budget speech that the programs and projects implemented this year would continue next year.

 

“These transport programs include the continuous investment on upgrading and maintenance of the national priority roads, plus construction of missing links, district commodity roads, and the Civil Aviation investment development program.

 

“In the medium term, roads, bridges, ports and airports/airstrips will be targeted towards the untapped economic potential areas to stimulate economic growth.”

 

The ADB-funded Highlands Highway rehabilitation program starts next year, rural jetties gets K20 million, oil palm roads K15 million, the rural airstrips authority gets K6 million, Mr Abel said.

 

Post-Courier.com.pg – 30.11.2017

NO CUTS TO CORE NATIONAL PRIORITIES, SAYS PM

28 November 2017

Source: Post-Courier

Prime Minister Peter O’Neill said the 2018 National Budget is based on common sense and restraint, and builds on the proactive manner in which the Government has managed the recent global economic pressures.

 

“When we formed the Government in Alotau, we promised to deliver stable and sensible administration, and you can see that commitment evident in this budget,” the Prime Minister said ahead of the tabling of the budget by the Treasurer in Parliament this week.

 

“In this budget, there will be no cuts to our core national priorities, particularly education and healthcare.

 

“We will deliver a productive and safe APEC summit in 2018 through modest expenditure that builds capacity and leaves the legacy in our Government agencies.

 

“Our Government will also continue to build more efficient public services that are increasingly capable while being less expensive to operate. I am looking forward to sensible debate about the budget that is based on fact and not misinformation.”

 

Mr O’Neill said while pressure on the economy from global factors is easing, the Government will continue to ensure fiscal discipline is maintained.

 

“There is no doubt that we are seeing improvements in the global economy, and this is reflected in positive indicators in our own economy.

 

“Commodity prices are returning to healthier levels but there is still a long way to go before we can relax.

 

“When global conditions were at their lowest, our Government managed the challenges we faced and this has placed us in a stronger position today. We continued to maintain positive economic growth through a program of reducing spending, managing expenses and rescheduling some infrastructure construction,” the PM said.

 

“It is because of our responsible approach that we can deliver the budget that will be presented to the Parliament this week.

 

“The Treasurer, working with all Cabinet members, and Treasury officials, has developed a very responsible budget that takes account of current global challenges.

 

“I congratulate our Treasurer and Deputy Prime Minister, Charles Abel, and look forward to the delivery of his first budget speech on Tuesday.”

New Infrastructure Projects with China will Change Lives – Direct Investment by China Railway Group in PNG Economy

 

Media Statement via Prime Minister’s Office PNG

Monday, November 20, November 2017

The Government of Papua New Guinea has signed a serious of Memorandums of Understanding (MOU) with the Government of China and the China Railway company that will deliver a number of new infrastructure projects in the Highlands.

 

Witnessing the signing of the MOU today in Port Moresby, the Prime Minister, Hon. Peter O’Neill CMG MP, said the new projects will have direct positive impacts on the lives of people in Eastern and Western Highlands provinces.

 

“These projects will enhance agriculture, roads and water supply in parts of the Highlands will improve lives and help people to be more active in the economy.

 

“China is one of our strongest development partners, and this direct investment is an example of the huge confidence that China and Chinese companies have in Papua New Guinea.

 

“Despite the challenges in the global economy in recent years, the outlook for the Papua New Guinea economy is very positive and we thank our partners for their commitment to our country.

 

“The projects that we initiated today will be delivered in some of the most remote parts of our country where there is a need to improve connectivity and services.

 

“These projects are taking place as part of the ‘One Belt One Road’ initiative that is creating more efficient trade corridors between the Asia-Pacific and Western Asia.

 

“As this initiative grows we are seeing infrastructure improvements across many developing countries.

 

“At the eastern end of the initiative, Papua New Guinea is deriving benefits that will strengthen capacity to trade across borders.”

 

The Prime Minister thanked the President of the China Railway International Group, Mr. Zhang Zongyan, for visiting Papua New Guinea to see for himself where support can be allocated.

 

“I thank the Government of China and the China Railway Company for their ongoing commitment to Papua New Guinea.

 

“The projects we have agreed on today will deliver positive change for people in many towns and villages.

 

“Your support for Papua New Guinea will be remembered long into the future.

 

“I look forward to further discussing these and other initiatives with President Xi Jinping when he arrives in Papua New Guinea for APEC next year.”

 

The three MOU’s signed today are:
– China-PNG Integrated Agriculture Industrial Park;
– The High Priority Economic Roads Project;
– Goroka Town Water Supply Upgrade Project.

 

The signing of MOU’s was witnessed by Prime Minister O’Neill, Works Minister, Michael Nali, and Lands minister, Benny Allen.

 

Photos:PM O’Neill meets with officials from China Railroad Group and Chinese Government before the signing the MOUs.

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