Only three of the 15 port facilities owned and operated by PNG Ports Corporation Limited (PNGPCL) are profitable, but regardless of this, PNGPCL continues to invest in all its ports.
PNGPCL Chief Executive Officer, Mr Stanley Alphonse, said of its 15 declared ports, only Lae, Port Moresby and Kimbe made money, while the others were operated by PNGPCL under its community service obligations program.
“We really don’t make the money, there is no demand of volume there but we continue to invest in them as part of our service charter.”
“We might not make the money and get the returns but the investments could also be good for other purposes such as tourism,” Mr Alphonse said.
PNGPCL has a Service Charter, both under the regulatory contract it has with the Independent Consumer and Competition Commission (ICCC), and the Harbours Act to maintain these ports at an operational level.
PNGPCL is currently spending up to K400 million over the last three years on developmental works at various ports around the country.
Mr Alphonse said K45 million was spent on developing the Alotau port and this has improved the port’s capacity to take on ‘11-storey dream cruise liners’ and other cruise ships, boosting the tourism industry in Milne Bay.
He said another K45 million had been spent in Kimbe in response to the increased economic activity brought on by the Oil Palm industry in West New Britain.
K10 million was recently invested in the Oro Bay port to improve its facilities, and talks are ongoing with the East Sepik Provincial Government to rehabilitate the Wewak port, while others are in the pipeline.
Mr Alphonse also announced three major projects that would be carried out in Aitape, Rabaul and the Port Moresby port.
The West Sepik Province will see a decent port facility built in Aitape following the government’s approval of K100 million allocated through the district. PNGPCL is the project manager.
“The facility will be built in response to economic activity going on there, there is no point building a facility when you don’t have demand or throughput,” Mr Alphonse said.
Rabaul port will also be relocated because a lot of money was being spent on dredging volcanic ash and run offs from the mountains.
Mr Alphonse also said that preparations were progressing for the relocation of the Port Moresby port to Motukea, just outside Port Moresby.
He also announced that from prudent management, PNGPCL had been able to make some money from the other not-so-profitable ports.
Mr Alphonse said these during the announcement of his reappointment to serve PNGPCL as CEO for a second term.
Source: PNG Ports