Chamber expresses concern about Lae port clearance times

By MALUM NALU
 

Lae Chamber of Commerce and Industry yesterday expressed fears that a larger Lae port will not necessarily mean faster cargo clearance time.

Chamber president Alan McLay said this yesterday when asked to comment on work on the Lae Port.

“We are pleased that Customs are planning to introduce a new x-ray examination centre to speed up the processing of containers, but it is our concern that the bureaucratic government services of Customs, NAQIA and PNG Ports Corporation staff will not change, and will remain a stumbling block to the efficiency of the increased sized port,” he said.

Riback Stevedores' container yard at the old Lae Airport

“With the increased size of berthage, there will be an increase in the movement of cargo across the port.

“This will mean that Customs, NAQIA and PNG Ports Corporation workers will have to work around the clock to clear the cargo in a timely manner.

“Data links to the Customs data entry system in Port Moresby will have to be improved so there is a minimum of downtime, so the containers can be cleared.

“If not then we will have a larger port which will not be equipped to handle the increased volumes of cargo.”

McLay commended China Harbour Engineering Company for tackling the massive job of dredging the tidal basin area,” in a truly professional manner”.

Lae port tidal basin project

 “Independent Public Business Corporation so far has handled some sticky claims from landowners well without them getting unmanageable, and we can see the benefits to the landowner groups,” he said.

“The benefits to Lae and the country of the increased size of the Lae Port is massive and is needed today,  and not in two to three years time, as ships are constantly waiting off shore for a berth so unload their wares and upload PNG coffee and cocoa exports.”

No control of Lae road works, says chamber

By MALUM NALU

 

The Lae Chamber of Commerce and Industry (LCCI) has expressed concern at the” near dictatorial control” of the Lae Roads development by contractors.

It also wants to see the Lae Urban Local Level Government (LULLG) honor its agreement to maintain roads in the city.

Roadworks along Markham Road, Lae, next to the rugby league ground. The problem with the multi-million Lae roadworks is that many of the contractors have done a half-baked job, resulting in a major investigation.-Pictures by MALUM NALU

Chamber president, Alan McLay, said yesterday the control of roads by contractors was leading to a whole range of detrimental issues, including:

•Unannounced and unnecessary lengthy closure of roads for reconstruction which has lead to congestion;

•Unnecessary cutting of trees for ease of construction which affects not only the beauty of the city but also relief from the hot sun;

•Pedestrian crossings in wrong and dangerous locations;

•Road marking in wrong and inappropriate paint which is difficult to see and quickly wears off; and

•Lack of erection of appropriate and easy-to-see street signs.

“The LCCI would like the LULLG to make an effort to honor its agreement to maintain the roads in the city, especially the industrial roads that were graciously rehabilitated by AusAID over a decade ago and the residential road,” McLay said.

“It would be wonderful to have the old ‘pothole gangs’ back on the roads, attacking the potholes before they develop into major impediments to the traffic,” he said.

“We note that the first recommendation of the report on the Lae City Roads Rehabilitation Project (LCRRP) was for the establishment of a provincial management unit (PMU).

“We would like to see the PMU established, which would consist of local stakeholders, to manage the Lae roads project, to give the roadworks that vital Local and professional input, that is sadly missing from the project at the moment. “

McLay said the chamber was pleased to see work recommencing on Lae roads after the projected was halted for investigation last year.

“We are pleased to see the work re-commencing on the Lae Roads under the Lae Roads Rehabilitation Project that was halted after the investigation last year,” he said.

“We are happy to see a further K100 million allocated in the 2013 budget, which should see the completion of the major trunk roads in the city.

" The benefits of a good roads system to business is enormous : punctuality of staff and less dust related diseases  equals  less absenteeism; speedier vehicle movement  equals less delivery time; less vehicle maintenance and replacements; less crime due to slowed down vehicles, etc.”

Future of PNG deep sea mining uncertain

UPI

PORT MORESBY, Papua New Guinea, Dec. 19 (UPI) -- The future of deep-sea mineral mining off the coast of Papua New Guinea faces uncertainty.

 Canadian company Nautilus Minerals' Solwara 1 Project in the Bismarck Sea off PNG, embroiled in disputes over funding as well as questions over environmental and social effects, has come to a halt after two years of development, Inter Press Service reports.

 Nautilus Minerals has referred to Solwara 1 as the world's first commercial seafloor copper-gold project and launch of the deep-water seafloor resource production industry, while "maintaining an environmentally and socially responsible approach."

 Last month, Nautilus announced it was terminating construction of its $407 million seafloor production system.

 Nautilus said the PNG government has a contractual obligation to pay approximately $75 million associated with a 30 percent investment in the project.

 "The state disputes this interpretation and Nautilus cannot continue to (exclusively) fund the build of the Solwara 1 equipment," Nautilus told IPS.

 The PNG government, in issuing a license to Nautilus in 2011 to mine Solwara 1, had agreed to take a 30 percent stake in the project and co-finance it. But in June 2012 the PNG government carried out a legal process to determine if it was obligated to contribute to funding Solwara 1.

 "We were paying for it all ourselves and it was becoming too costly," Michael Johnston, Nautilus' chief executive officer told SciDev.Net. "We were at an expensive stage of the build. We were spending US$3 million or US$4 million a week. For a company of our size, we couldn't continue to pay for that ourselves."

 PNG's previous government had preferred to take equity in most resource projects, says Colin Filer, an associate professor at the Australian National University. But the new government which came to power in August 2011 -- after Nautilus was issued a license for the project -- has taken a more strategic approach, Filer said.

 Meanwhile, environmentalists have called for more careful consideration of deep-sea mining.

 "Another 10 to 15 years of marine research really needs to be done so that we better understand the deep marine ecosystem before we embark on deep-sea mining," Chalapan Kaluwin, professor of environmental science at the University of Papua New Guinea, told IPS.

 "We don't understand enough about the potential impacts of this deep-sea mining project on marine biodiversity, fisheries and coral reefs, as well as people and communities," Kaluwin said.

 Nautilus says it holds more than 193,051 square miles of "highly prospective exploration acreage" in the western Pacific including the Solomon Islands, Fiji, Vanuatu and Tonga, as well as in international waters in the eastern Pacific.

Read more: http://www.upi.com/Business_News/Energy-Resources/2012/12/19/Future-of-PNG-deep-sea-mining-uncertain/UPI-99071355943404/#ixzz2FY8Z7iLy

Butibam village landowners sign multi-million kina agreement

By MALUM NALU

 

Landowners from the six clans of Butibam village, Lae, last Saturday signed an agreement to work together with their company, Butibam Progress Ltd, in a multi-million kina contract to supply gravel to the Lae Port Tidal Basin Project.

Last Saturday’s signing follows an initial agreement signed last month between China Harbour and Butibam Progress Ltd for supply of gravel.

Butibam Progress Ltd chairman Paul Gware signs the agreement on behalf of the company as managing director Peter Kesu Sayama and clan leaders look on.

Leaders of the six Butibam clans – Agactuc, Wapiguhuc, Busurum, Apo, Tumata and Gwatu – signed the agreement last Saturday at the Melanesian Hotel.

Clan leaders and Butibam Progress Ltd management toast to the signing of the agreement.

Butibam Progress managing director Peter Kesu Sayama said the agreement bound the company together with China Harbour.

“Initially, we signed an agreement with China Harbour for supply of gravel for the Lae Port Tidal Basin Project,” he said.

Butibam Progress Ltd managing director Peter Kesu Sayama

“This one binds the landowners with Butibam Progress Ltd.

“It shows to stakeholders that we are all working together.

“It gives the green light for Butibam Progress Ltd to go ahead with business.

“We landowners have been mere spectators to business developments in Lae over the years.

“We have not been participating in business.

“This is our commitment to work together.

“For too long, we have not had this kind of opportunity.”

Kesu Sayama said supply of gravel to the Lae Port Tidal Basin Project would serve as the springboard for new business opportunities around Papua New Guinea as major infrastructure projects required gravel.

“We’re very optimistic about what is happening,” he said.

“It’s working in line with the vision of our company.”

Kesu Sayama also agreed with Morobe Governor Kelly Naru’s statement at the Ahi Festival last month that Ahi people had been missing out on business opportunities in Lae.

“We’ve been missing out big time,” he said.

“We have not been productive.

“People from outside have been coming in and coming in.

“We really need to raise up ourselves now.

“We’ve missed out big time on a lot of opportunities.”

Economist Dhenny Benson said: “There are so many resources in Lae.

“Lae City is a resource centre where landowners must be involved.

“Butibam Progress Ltd has been reorganised as a landowner company.

“Stability (economic) of centres like Lae also depends on political support.”