Transport & Logistics
From The Report: Papua New Guinea 2019
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The quality of a destination’s transport infrastructure is key to attracting foreign investment. In Papua New Guinea this is an area with room for improvement. The poor condition of roads, ports and airports has raised the cost of doing business and rendered a number of sectors of the economy increasingly uncompetitive. Because of this, inland transport costs currently account for 10-15% of the on-board price at the port. Since potholed roads and poor connectivity can cause delays in fresh farm produce reaching the market on time, transport infrastructure also impacts the agriculture sector. Therefore, supermarkets in Port Moresby are stocked with imported fruits and vegetables, while many varieties produced in the Highlands go to waste. This chapter also contains an interview with Alan Milne, Managing Director, Air Niugini.

Articles from this Chapter

Overview

Room to grow: New legislation and achievable targets ensure transport infrastructure is on the road to improvement
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The quality of a destination’s transport infrastructure is key to attracting foreign investment. In Papua New Guinea this is an area with room for improvement. The poor condition of roads, ports and airports has raised the cost of doing business and rendered a number of sectors of the economy increasingly uncompetitive. Because of this, inland transport costs currently account for 10-15% of the on-board price at the port. Since potholed roads and poor connectivity can cause delays in fresh farm…

Interview

Rising up: Alan Milne, Managing Director, Air Niugini, on attracting infrastructure investment for the aviation sector
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Interview:Alan Milne Which sectors generate the most demand for aviation services in Papua New Guinea? ALAN MILNE: The success of the aviation sector is inevitably linked to the performance of the economy, specifically regarding extractive industries. This sector is a large employer of both citizens and non-citizens who need to travel to and from their workplace regularly. Demand for airline seats and air freight peaks during the construction phase of a project, so a continuous supply of…

Analysis

Change ahead: Improvements are in the pipeline to address increasing passenger numbers and enhance internal air connectivity
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Improving internal air connectivity has been identified as a priority for government in Papua New Guinea. Under the Medium-Term Development Plan (MTDP) there are a number of key targets to be achieved by 2030. These include: ensuring all 22 national airports meet international safety standards, upgrading 10 domestic airports to handle large jet planes and rehabilitating 50 small rural airstrips in order to ensure adherence to basic safety standards. In February 2019 former Prime Minister Peter O’Neill pledged $13m for airport upgrades. Whether this budget commitment will be kept by his predecessor, the incumbent Prime Minister James Marape remains…

Analysis

Strong development: Clear plans for infrastructure improvement and rural road rehabilitation provide promise and attract investors
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Roads are critical for economic growth and inclusive development in Papua New Guinea. By providing access to employment, health and education services, roads stimulate economic activity and enhance competitiveness, while poor roads isolate communities and compromise national security. Road infrastructure is therefore considered to be both a key strategic asset and essential for the public good. National Roads The total road network in PNG is estimated to be 30,000 km. The government’s Medium-Term…