PNG Ports Corporation Limited (PNG Ports) owns and operates 15 port facilities in the country, but relies on only three ports to fund its operations.
The other 12 ports do not make money and are run as part of the PNG Ports Community Service Obligations (CSO) program.
Managing Director of PNG Ports, Fego Kiniafa, clarified that eighty percent of the ports, referred to as CSO ports, were not profitable and depended on Motukea (Port Moresby), Lae and Kimbe to generate enough revenue through the cargo volume throughput.
“Motukea, Lae and Kimbe generate revenue that funds the operations of the 12 other ports. These three also have the capacity to sustain themselves and could amply support their own operations going forward.”
“We have competition from private port facility operators in Port Moresby and Lae, which lessons our ability to fulfil our mandate, because our competitors do not have to support any other port as we do.”
“But as a responsible state owned entity, PNG Ports is focused in ensuring basic services are delivered to the people, who are the stakeholders. Hence, we operate the 12 ports through our CSO regime, as part of giving back to the communities, in ensuring that this nation, so reliant on sea-borne trade, prospers.”
“In line with the government’s aspirations and to meet our stakeholder’s demands, PNG Ports has also ensured the rehabilitation and upgrading of all ports in its drive to modernize port operations and drive efficiencies.”
“We believe in prudent management, accountability and transparency in order to address the ongoing challenge of meeting the demands of our stakeholders, and to maintain our status as the premier port facility operator in the Pacific region,” Mr Kiniafa said
PNG Ports owns and operates 15 of the 23 declared ports in PNG - Aitape, Alotau, Buka, Daru, Kavieng, Kieta, Kimbe, Lae, Lorengau, Madang, Oro Bay, Port Moresby, Rabaul, Vanimo and Wewak.
Of the other eight ports, seven are non-operational while one (Samarai Port) is under agency management.
The Lae and Motukea International port facilities, owned by PNG Ports, are exclusively managed and operated by a global company, International Container Terminal Services Inc. (ICTSI) South Pacific.
In September 2017, Government and PNG Ports signed a 25-year terminal management agreement with the ICTSI Group to run these two port facilities.
The benefits of this Government driven initiative are already being realised, due to the investment ICTSI made in state of the art equipment, ICT systems, and through the introduction of world standard waterfront practices and training.
Lae port now trades as the South Pacific International Container Terminal, and Motukea, located outside Port Moresby, as the Motukea International Terminal.