Transport
From The Report: Papua New Guinea 2014
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Papua New Guinea’s transportation sector looks to be turning a corner as a number of substantial infrastructure upgrades are now in full swing. Under the PNG Strategic Development Plan 2010-30 the government aims to expand the national road network from 8460 km in 2014 to 25,000 km by 2030 and raise the proportion of roads in good condition from 28.7% to 100%. The government is encouraging private sector investment through the infrastructure tax credit scheme, which is available to taxpayers that build infrastructure to support their mining, petroleum, natural gas, primary production or tourism activities. Improvements at ports, combined with the eventual relocation of government-owned facilities in the capital, should further ease congestion for domestic and international shipping lines, although monopolistic domestic shipping practices could offset some of the efficiencies gained. In the skies, much-needed improvements to the country’s airports and airlines should also improve efficiency, comfort and safety. This chapter contains interviews with Tim Blackburn, Managing Director, Swire Shipping; and Zoë Harrison, Country Manager PNG, DHL.

Articles from this Chapter

Overview

Improvements are in full swing across all segments
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Rugged terrain, tropical climate and a widely dispersed population present formidable challenges to Papua New Guinea’s transportation sector as it struggles to keep pace with rising economic growth. While the influx of investment over the past decade as the result of the construction of the PNG Liquefied Natural Gas (LNG) project has been a boon to the economy, the unprecedented size of the development has put significant strain on the transportation and logistics sector. To sustain this growth…

Interview

OBG talks to Tim Blackburn, Managing Director, Swire Shipping
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Interview:Tim Blackburn What is the potential for Lae’s port to be used as a trade hub in the South Pacific region and beyond? TIM BLACKBURN: The island nations of the South Pacific region depend on reliable, frequent and cost effective shipping services to provide access to international markets and to support sustained economic growth. Lae is ideally located to act as a domestic and regional trans-shipment hub in the South Pacific. However, realising this potential as a trade centre…

Analysis

Overhauling the nation’s airport facilities as demand increases
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Given the remoteness of many communities and resource development projects which have limited or no access to other modes of transportation, air travel in Papua New Guinea plays a more vital role in economic and social development than its regional peers. In a number of cases, the country’s 22 airports serve as the only reliable link to the outside world due to the complexity of the topography and terrain. With air travel providing essential services ranging from medical evacuation and equipment…

Interview

OBG talks to Zoë Harrison, Country Manager PNG, DHL
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Interview:Zoë Harrison Taking trade flows as an economic indicator, how would you assess the local market’s performance? ZOE HARRISON: Over the last five years we have seen disposable income grow considerably in Papua New Guinea. This has driven larger imports of luxury items, especially mobile phones, which are highly desired by average Papua New Guineans. Handsets were practically unaffordable 10 years ago due to lack of competition in the local market. Now, they have bypassed the use of computers, especially in remote areas, and had a huge effect on people’s capacity to trade. In the last half-decade we have seen a surge in coastal…

Analysis

A vital link: Improving the Highlands Highway for further economic development
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Although the commercial, political and social centre of Papua New Guinea is firmly entrenched in Port Moresby, its agricultural and resource heartland lies squarely in the rugged Highlands region. Home to some 40% of the population, the fertile soil of the Highlands produces some of the most valuable cash crops including coffee, tea and cocoa. The area also contains substantial natural resources including the oil and gas reserves for the PNG Liquefied Natural Gas (LNG) project and future LNG developments…