Lae and Motukea ports report performance hike over last three years

PNG Ports Corporation Limited (PNG Ports) has welcomed the three-year performance of the terminal operators at two of its international port facilities.

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, PNG Ports and the government signed a 25-year terminal management agreement with the ICTSI Group to run these two port facilities.

Lae port now trades as the South Pacific International Container Terminal (SPICT) and Motukea, located outside Port Moresby, as the Motukea International Terminal (MIT).

The agreement with ICTSI was aligned closely with the country’s estimated continued development and growth in the international trade.

Managing Director of PNG Ports, Fego Kiniafa, this week welcomed the performance of ICTSI over the last three years.

Statistics show vessels waiting at anchor to berth at port facilities is now on average one hour, compared to 2015’s average waiting time of 16 hours, while the time spent in port while cargo is being off loaded and loaded has been reduced from at least two days on average to about less than a day now.

Ship turnaround times had decreased on average by half from 38 hours to 18 hours, truck turnaround which was 50 minutes is now an average of 25 minutes, while berth productivity time and the documentation process have also seen a huge cut.

Electronic data interchange and vessel productivity reports which used to take about 12 hours now take around two hours.

 “The country’s decision to modernize our two international terminals has achieved results over the last three years,” Mr Kiniafa said.

“The government has planned for continued growth and development in the international trade arena and PNG Ports is pleased to have entered a productive partnership with ICTSI.”

“We look towards enhancing our partnership over the next two decades as we work together to maximize both ports’ potential of bringing high standards of operational efficiency to the two ports for the greater benefit of our port users and the country.”

ICTSI South Pacific is part of the ICTSI Group, a key player in the global ports industry with over 30 years of experience.  The ICTSI has its headquarters in Manilla, Philippines, and operates 32 terminals in 19 countries, the closest ones being in Melbourne, Australia, and South Sulawesi in Indonesia. 

Lae Port

PNG Ports welcomes new Chief Operations Officer

Managing Director of PNG Ports Corporations Limited (PNG Ports), Fego Kiniafa, is pleased to announce the appointment of its new Chief Operations Officer, Mr Rodney Begley.

Mr Begley is not new to the maritime, shipping and port industry having worked in Europe, Australia and parts of the South Pacific, including the Solomon Islands and PNG.

He brings with him over 30 years of international general management and senior leadership experience in shipping, ports, logistics, supply chain, cruise shipping and the tourism industry.

As COO, Mr Begley will oversee PNG Port’s 15 ports nationwide and work closely with key staff, management, terminal operators and stakeholders to ensure that PNG Ports continues to be the premier port services provider in the region.

The Board and Management of PNG Ports are confident that Mr. Begley’s international operational skills will promote and foster closer working ties with our customers and port users in both the Government and the private commercial sector, thereby executing operational business strategies and efficiencies, designed to enhance PNG Ports’ revenue and to further develop and invest in our people.

PNG Ports welcomes Mr Begley as he settles into his role and look forward to his contribution to the company and the country.

PNGPCL 2019 Financial Results

The Chairman of PNG Ports Corporation Limited, Mr. Kepas Wali, is pleased to announce the unaudited annual financial result of the company for 2019.

 

PNG Ports Corporation Limited annual net profit after Tax is K77.07m. The profit recorded a significant growth of 94%, compared to that of 2018 of K43.63m.

  • The profit is a result of revenue growth of K306.56m compared to 2018 of K285.02m. 
  • The higher performance is attributed to marginal CPI adjustments on approved tariffs, increase in other operations revenue combined with the management’s stringent internal cost control measures. 
  • Both regulated and non-regulated revenue performed higher than in 2018. 
  • Regulated services revenue contributed K197.45m. 
  • Non-regulated services revenue contributed K109.10m. 
  • Management’s ongoing cost control has delivered a savings of K31.62m (14%) in 2019 compared to 2018. 
  • Overall throughputs volumes have increased compared to 2018, with Container (TEU) up 4% and Pilot engagement up 6%, whilst Cargo Tonnage fell by 3% and Port facility calls fell 6%.

 

The Annual Audit is in progress and audited reports will be published on a later date.

Given that the business of PNG Ports Corporation Limited is demand driven, the volumes are based on the global supply chain (i.e. exports and imports) and competition hence PNG Ports is restricted to the global business demand for prosperity.

Accordingly, the outstanding performance recorded in 2019 is a result of the collaborated effort by the Board and Management in ensuring sound business decisions and prudent cost control.

PNG Ports Corporation Limited projected a further increase in revenue for this year 2020 however, this will significantly be impacted due to the Coronavirus (“COVID-19”) pandemic. Board and Management will therefore revise the budget, to reflect the impact of the COVID-19.

PNGPCL Plans for Business Continuity amidst the COVID – 19 pandemic

 

PNG Ports Corporation Limited (PNGPCL) serves the nation’s needs for the transportation of goods and people and acts as Papua New Guinea’s gateway to the rest of the world. The company plays a critical role in the facilitation of trade within PNG and abroad.

The need to continue to allow trade to flow through our ports is very important and should be allowed to happen, albeit in a much more controlled manner.

With the outbreak of the global pandemic, COVID – 19, PNGPCL has set in place stringent protocols for all vessels and crew to adhere to, this has been achieved in consultation with the Maritime Security Division of the Department of Transport, and other stakeholders such as the Department of Health, Customs, Immigration and Citizenship Authority, NAQIA and shipping agents.

The Ports of Motukea, Rabaul, Madang and Lae have been designated as first ports of entry for all international vessels. PNGPCL staff and port facility employees are required to take heed of the following regulations, that have been imposed at all Port facilities.

  1. The suspension of shore leave by crew of all international vessels calling into any PNG ports.
  2. A suspension of crew change in all PNG ports
  3. No crew is allowed on the quayside of PNG ports.
  4. No personnel from the portside are allowed on board any International vessel apart from those performing statutory functions and relevant stevedores.
  5. All statutory functions undertaken by receiving PNG ports personnel will be carried out within the PNG National Department of Health guidelines and using appropriate PPE.
  6. All vessels will be cleared in the nominated ports and port facilities as gazetted by NDoH before any expedition to any other port or remote site.
  7. Exemption to any of the above must made to the Department of Transport for their consideration.

 

The Board and Management of PNGPCL being cognisant that the Government may impose restrictions on the movement of the population, have in place its Business Continuity Plan, to ensure that all its port facilities around PNG remain operational.

The business continuity plan will have 4 (Four) levels of response measures, namely;

  • Level 1 ( Code Green ) – Alertness & Preparedness Measures
  • Level 2 ( Code Orange ) – Heightened Measures
  • Level 3 ( Code Red ) – Civil Unrest Measures
  • Level 4 ( Code White ) – Recovery Measures

 

For levels 2 & 3, non-essential staff will be asked to work from home, whilst each port will remain open as required with a skeleton staff.

PNGPCL assures the business community and the general public that it will continue to administer and facilitate domestic and international trade through its network of ports in close consultation with the relevant Government frontline agencies and our industry partners.

 

Motukea staff