Transport
From The Report: Papua New Guinea 2012
View in Online Reader

Infrastructure deficits are one of PNG’s most pressing economic concerns, affecting the competitiveness of industry and agriculture while hindering development in the country’s interior. Thanks to increasing revenues, however, the government is now in a position to address its inadequate land and sea transport systems. The first of four development plans will spend $11.7bn on transport over five years, with the goal of eventually tripling the size of the road network, expanding over-capacity ports, and modernising airports. The challenge will be to marshal the necessary investments while overcoming the bureaucratic and parochial tendencies of PNG’s political system.

This chapter features interviews with Wasantha Kumarasiri, CEO, Air Niugini; Stanley Alphonse, CEO, PNG Ports Corporation; and Joseph Kintau, Managing Director, National Airports Corporation.

Articles from this Chapter

Overview

Paving the way: Transforming the nation’s land, sea and air infrastructure
OBG
plus

After much neglect in the years since independence, the rehabilitation of Papua New Guinea’s transport infrastructure is now taking centre stage in national development planning. Led by Vision 2050, the PNG Development Strategic Plan (PNGDSP) has outlined an overhaul of national land, sea and air capabilities by 2030, to be implemented in four five-year medium-term development plans (MTDPs). The first MTDP – signed off in 2010 and running from 2011 to 2015 – will see approximately PGK24.65bn…

Interview

OBG talks to Wasantha Kumarasiri, CEO, Air Niugini
OBG
plus

Interview: Wasantha Kumarasiri What are the immediate priorities for Air Niugini in the current economic environment? WASANTHA KUMARASIRI: Air Niugini has several priorities for the immediate future. The first is to manage the cost of fuel and implement mitigating strategies. In this regard, the board has approved a proposal by the management to start hedging by looking for suitable products. Air travel competition in some markets is very acute and airlines have different methods of managing this…

Interview

OBG talks to Stanley Alphonse, CEO, PNG Ports Corporation (PNG Ports)
OBG
plus

Intreview: Stanley Alphonse What are the plans for rehabilitation and modernisation of Port Moresby Port? STANLEY ALPHONSE: The PNG network of ports was largely built 25 - 30 years ago, before independence, and has since suffered from serious underinvestment. However, in recent years the regulatory framework under which PNG Ports operates has provided pricing arrangements to rehabilitate the network. Due to the large volume of cargo that flows through these ports, there is particular focus set…

Analysis

High-cost highways: Logistics firms are trying to overcome operational challenges
OBG
plus

While few in the transport sector expected Papua New Guinea’s transport modalities to adjust in time to the rapid acceleration in demand precipitated by the $15.7bn ExxonMobil-led liquefied natural gas (LNG) project, delays and cost increases estimated at between 40% and 60% by the World Bank, are the source of continued frustration. Capacity overloads throughout PNG’s transport sector have spread costs throughout the national supply chain, leading to significant inflationary pressures in…

Interview

OBG talks to Joseph Kintau, Managing Director, National Airports Corporation
OBG
plus

Interview: Joseph Kintau What specific initiatives are being pursued in 2012 to reduce overall costs of air transportation? JOSEPH KINTAU: Gradual cost reduction in air travel has to happen though increased competition, as the government and its regulatory bodies are in no position to dictate costs. As more and more operations are launched in PNG’s aviation sector, the price of travel will start to fall. This process has already begun, and we are seeing new domestic entrants, operating both scheduled…