Tag Archives: Transport

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
 
 

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

‘Port Moresby To Be Transformed’

 

Source: Post-Courier

 

BY GORETHY KENNETH

Port Moresby will be transformed to world standard as months draw near for Papua New Guinea to host one of the biggest meeting ever – the 2018 APEC Summit next November.

APEC Minister Justin Tkatchenko and APEC PNG director general Sir Charles Lepani said in a conference yesterday that compared to Vietnam and other economies that hosted APEC already, PNG, which is APEC-ready, has very unique infrastructure specifically the APEC House that stands out, with all preparation now two to three weeks ahead of schedule.

Mr Tkatchenko and Sir Charles said yesterday that everything is now falling in line and have assured that the Government is ready to host this meeting come November next year.

They spoke about visa arrangements, airport arrangements, security arrangements, accommodation and every other operation that are vital for the summit.

“Logistic, protocol, security and every other preparation is now under control,” Mr Tkatchenko said.

“I can give confidence to the people of Papua New Guinea that your government through our Prime Minister will be prepared APEC ready in 2018 and with all the lead-up meetings to host the very successful APEC CEO and Leaders Summit and sideline meetings throughout the country.”

 

 

MP subsidises airfares for locals

Source: Loop PNG
 
By: Julianna Waeda
 
 
The Mission Aviation Fellowship was recently boosted with K250,000.
 
Jimi MP, Wake Goi, presented a cheque to MAF during the weekend in Mt Hagen.
 
It was the part payment of a K2 million commitment to subsidise airfares for the people of Jimi within a four-year period.
 
The implementation of the scheme commences on the first week of November and a review would take place after three months’ time.
 
Goi, when presenting the cheque, said the scheme is not restricted to Jimi people. Others who travel to Jimi by MAF crafts can also access it. It is only for those who are travelling to Kol, Ambuluwa, Koninambe and Sendiap airstrips within Jimi only.
 
Furthermore, medical emergency cases would be fully covered by the scheme while other special arrangement travels would only go through him.
 
The part payment of the scheme is from the K2 million DSIP funds from the National Government, revealed Goi.
 
The cheque was given to the company’s administration manager, Eric Eribieng, at the MAF’s Kagamuga hangar on Sunday.
 
Meantime, on behalf of the MAF PNG, Eribieng and Godfrey Sim, the church, community and government partnership manager, thanked the MP for his initiative.
 
They described it as a first-of-its-kind after 65 years of service in PNG.
 
The MAF website states: “In 66 years of operation in Papua New Guinea (PNG), Mission Aviation Fellowship (MAF) has served hundreds of communities which are isolated by mountains, jungle, rivers and swamps.
 
“Strategically located bases in Rumginae, Wewak, Goroka, Madang and Telefomin are connected by a network of flying routes to MAF’s headquarters in Mt Hagen.”
 
(Famine relief flights reach remote villages in Papua New Guinea – Picture: MAF UK)
 

National Road Strategy

 

October 15, 2017

08:00AM 

Source: Post-Courier

 

BY JEFFREY ELAPA

 

A long term Department of Works road network maintenance and management strategy developed recently would address road maintenance throughout the country.

 

Through the strategy, all donor agencies involved in road maintenance programs throughout the country would be re-aligning themselves to assist in road maintenance.

 

Work and Implementation Minister Michael Nali when endorsing the national road network strategy 2018-2040 described it as a blueprint document that will set milestone achievement and will go down in the history of this nation.

 

“This document will serve as a guideline to align all donor programs in PNG road transport infrastructure for the next 20 years.

 

“My Department, with the support of the Australian Transport Sector Support Program (TSSP) has developed an evidence-based strategy to make road maintenance and management work in the country.

More NCD Roads

September 29, 2017

Source: Post – Courier

 

 

Port Moresby city yesterday witnessed a K80 million addition to its fast developing road network with the opening of the Koura Way Road.

Works Minister Michael Nali opened the new road which links the suburb of Tokarara and Hanuabada village which is a distance of over 4km.

According to Mr Nali this brings to K2 billion in total the amount invested by the Government in NCD including all sports stadiums, the Jackson International Airport-Waigani fly over and other infrastructure.

This also makes Port Moresby city the fastest growing urban centre in the country coupled with other building infrastructure and business expansions.

“The city is moving in the right direction, you have the opening of this K80 million road project, you know the Government has given up to K2 billion to National Capital District Commission for all these roads, stadiums, all hospitals, and the flyover.

“When we built the Poreporena Freeway, critics said it was a waste of money, yet they drive on the freeway,” he said.

Mr Nali described those critics as spineless and said “we must move forward and develop.”

He urged the people of the city to look after the infrastructures around the city. It is the third road project that has been constructed to ease the traffic congestion in the city.

The Waigani, Tokarara to Hanuabada road is 4.5km, with 250 energy saving lights installed and was constructed with a Bank South Pacific loan.

Road connecting Hela, Southern Highlands opens

By PETER WARI of The National

 
The Hiri-Lai road connecting Hela and Southern Highlands is now open to the public.
This is one of the links opened by the Government to connect rural communities.

 
Simon Pipi, from Tupip village on the border of Southern Highlands and Hela, said the road had given hope to people like him living in the border areas.

 
He said many elderly people and pregnant women had died from curable diseases and childbirth complications as they could not access basic health services because there was no road to the nearest health facilities, especially the provincial hospitals.

 
Pipi said more than 50,000 people were now using the road and many from Hela were using it because of continuous road blocks, looting and harassment along the Nipa and Poroma section of the Highlands Highway.

 
“In the past, the only noises heard in the bushes were of animals and people. But today, people are able to watch vehicles pass through their villages,” he told The National. “We are just happy and thankful to the national government and the Hela government which had funded this 36km road.”

 
He said in the past, people wanting to go to Mendi or Tari woke up at 1am and walked miles using embers to light their way and reached the bus-stops by 7am.

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