1. Compendium of Best Practices and Benefits of National Logistics Associations in Selected APEC Economies. Author: Max Umbu, Manau Suu and Gabi Haoda. Organisation: PNG Ports Corporation P/L & Dept. Of Transport Second Workshop, Shangri-La Hotel Bangkok, February 2012

2. Contents. The purpose of this presentation is : To provide a brief profile of Transport in PNG Establishment of PNGLA Development plan partnership

3. PNG Map 3

4. Introduction  PNG’s population of 5.2 million  Four or five live in rugged mountainous or coastal terrain.  Most of 6,500 km of coastline in maritime provinces are accessible by sea.  Pockets of population else where especially along Sepik, Fly and Ramu river systems can be reached by dugout canoes.

5. Introduction cont’d  Roads are poorly maintained and provide unreliable, frequent, high costs.  Major high ways, once well maintained and offering modern, efficient and competitive services, now experience closure during wet weather.  Air services are prohibitively expensive for rural people.  PNG faces challenges like any other country.

6. Roads and Highways  PNG’s public road network is 25,000 km.  16,540 kms were identified & 8,460 km remained unaccounted.  Of the identified roads, national roads account for 8,422 km (52%) & prov. roads 8,119 km (48 %)  Highlands Highway linking Goroka, Kundiawa, Mt Hagen & their hinterland.

7. Roads and Highways cont’d  Most national networks are discontinue serving the relatively well-developed areas.  PNG’s poorest parts of the country are the most poorly served by road network.

8. Urban Transport  Traffic levels are very low.  74 % of National Networks carries less than 50 vehicles per day & 89 % less than 1,000 vehicles a day.  Traffic on the provincial and lower level networks is much lower.

9. Rural Transport  Transport cost have increased from 40 to 60 % real terms.  Fewer market opportunities are available and people can afford daily necessities  People are reverting to subsistence living or deserting rural areas for limited prospect employment.  Health and education indicators are generally falling.

10. Railways  PNG’s rough terrain mean. For the most part, the country has remained periphery of advances in technology.  Railed transport provided the basis of more than transport networks else where.  No. of light tramps railways built in the past century but being dismantled.

11. Inland waterways  Total inland waterways: 10, 940 km  National Transport Development Plan 2001-2010, aims;  Fund economical feasible costs of maintenance, rehabilitation and construction of maritime facilities and improvement of Navaids and boat services.

12. Ports and Shipping  PNG 17 declared commercial ports, 16 of these Ports are own by the government and managed by PNG Ports.  Curtain Brothers own and operate the other Port out of Motukea Island  Ports of Lae, Port Moresby & Kimbe are economical Ports, others are governments CSO Ports (Community Obligation Ports)  Ports serving Port Moresby, Lae, Kimbe, Madang and Rabaul carry international and coastal traffic and have reasonable level of infrastructure.

13. Ports & Shipping cont’d  Lesser ports provide basic services for coastal traffics.  Lae port is the main export/import point for highlands region.  Ports and Terminals: The major 16 ports in the country are operated by PNG Ports Ltd which handles more than 90% of all overseas ships serving PNG.  Network currently 20,000 km nationwide  Facilities are supplemented by large number of beach landings, ramps and jetties

14. Air Transport  PNG has relatively well developed system of air services.  150 airports and airstrips throughout PNG  Govt. policy encourages competition but market is very thin.  State owned Air Niugini holds effective monopoly over most important routes.

15. Logistics Industry Professional  Supply and logistics is a growing Industry  No proper training facilities  No proper bodies as PNGLA or Logistics Councils  In the process of establishing above Logistics bodies.

16. PNG NLA Progress Development  Initial work has begun with DoT & PNGPCL to establish PNGLA.  Melbourne Workshop report submitted to DOT.  Convened two prior interim consecutive meetings.  Papua New Guinea Logistics Association (PNGLA) formed registered with Papua New Guinea Investment Promotion Authority dated 13 th Feb 2012.  Strong support form DoT & PNGPCL

17. PNGLA CETIFICATE

18. Plan Partnership Development  NLA will become partner with Govt. as mouth piece for the Industry  Provide efficient and competitive supply chain  Build expertise/skilled professional in the logistics industry  Build intermodal connectivity

19. Plan partnership development Cont’d  Inform of need for developments and guide Government on prioritization of transport infrastructure.  Provide support and influence the national transport and infrastructure regulation and policy

20. Plan partnership development cont’d  Promote, protect and develop sound logistics industry  Promote, represent and protect the interest of members generally and for this purpose..20

21. Going Forward 2012  Will call for interim PNGLA executive Meeting  1 st AGM  Election of Officer Bearers/BOD  President  Vice President  Treasurer  Secretary

22. The End  Any Questions