PNG Ports Corporation Ltd cannot improve wharves, CEO admits

Caption:  Port of Lae…one of the few that is making money in the country.-Picture courtesy of PNGPCL

 

PNG Ports Corporation Ltd does not have the financial capacity to improve facilities through the country, according to CEO Brian Riches.

Mr Riches made this blunt assertion to staff in his 2009 Christmas message last Friday.

“Currently, PNG Ports does not have the financial capacity to improve facilities to bring them up to acceptable operating standards due to cash flow issues and funding shortfalls,” he said.

“Most of the existing wharves and berthes throughout the entire PNGPCL port network were built in the early 1960s.

“We are currently strategising maintenance and organising capital investment into the port infrastructure for the safety and operational capacity of PNGPCL’s existing infrastructure.

“Investments for capital infrastructure such as reconstruction of PNGPCL berths and new container terminals remain a high priority by the board and management.

“However, the benefits derived from investment will not be maximised unless coupled with improved operational efficiencies and performance.”

Mr Riches said in 2008, PNGPCL’s three largest ports – Lae, Kimbe and Port Moresby – under the PNGPCL management generated 93.7% of total revenue.

“All other ports are not considered to be commercially-viable and PNGPCL argues that they are maintained and remain open as part of the organisation’s ongoing commitment to its community service obligation,” he said.

“With the exception of Lae, Port Moresby and Kimbe ports, PNGPCL classifies all other ports as non-viable commercial operations.

“While the financial performance of the smaller ports has improved somewhat over the past five years, there is still considerable cross-subsidisation occurring.

“PNGPCL management is committed to creating subsidiary companies for each of these ports that would operate under the umbrella of the existing parent company.”

Mr Riches admitted that PNGPCL’s engineering department currently lacked the necessary capacity to support and manage engineering and structural requirements of PNGPCL infrastructure.

“Executive management is committed to the rehabilitation of the engineering department,” he said.

“Primary area of focus for engineering will be the development of maintenance and apex infrastructure for next five years, which will identify and prioritise financial expenditure requirements.

“It is recommended that the department work closely with the project team, finance department, operations and port business managers for this process to be undertaken successfully.

“For engineering to function effectively, communication with all the internal and external stakeholders will be critical to the future investment and maintenance of infrastructure and port operations.”

Mr Riches said PNGPCL also placed high emphasis on such areas as occupational health and safety (OH and S), and security at its ports due to international treaties, customs and best practice port security requirements.   

Boeing take off

For those of you who are unaware, Eva is the airline of Taiwan. This is a wonderful photo.
Eva Air Boeing 747-45EM taking off from runway 36L at Amsterdam-Schiphol .
The great timing and angle, and the size of the 747 makes this shot look quite surreal.
The distance to the fence was 145 metres (475ft)  !

A home away from home in Port Moresby

Chief Executive Officer of PNG Ports Corporation Limited Brian Riches (left) about to make an entry into the newly-established Seafarers’ Centre as General Manager-Corporate Services Jerome Peniasi opens the door.

The Seafarers’ Centre has been established by PNGPCL for transiting seafarers to relax in and keep in touch with business colleagues and family members when passing through Port Moresby Port on business trips.

The Seafarers’ Centre has a lounge room, Internet café, telephones, tea room and provides beautiful scenery looking out towards the Port Moresby Fairfax Harbour.

 

mv Mondi unveiled

Mrs Ila Temu, wife of PNG Ports Corporation Limited Chairman, Dr Ila Temu,  formally unveiling the newly-acquired pilot boat mv Mondi last Friday, December 11, 2009 at the PNGPCL Head Office jetty. The pilot boat was named after Mrs Temu.

PNG Media Awards Night 2009 (please click to enlarge)

Gunmen wound Papua New Guinea chief ombudsman

Unknown gunmen have shot and wounded Papua New Guinea’s chief ombudsman, Chronox Manek, in what is being described as an assassination attempt outside his Port Moresby home.

The shooting occurred on Friday night and the newspaper, The National, says a bullet went through his shoulder.

Mr Manek says after shooting several times, the gunmen got back in their car and sped off, thinking he was dead.

He says he tried to follow his attackers but, feeling dizzy from loss of blood, he decided to drive to a nearby hospital.

The Police Commissioner Gari Baki says one of his senior officers visited the chief ombudsman in hospital soon after the incident.

Transparency International ranks PNG 151st out of 180 of the most corrupt countries in their annual list.

A host of other government figures, including the prime minister and the treasurer, are currently under investigation by the Ombudsman Commission.

News Content © Radio New Zealand International

PO Box 123, Wellington, New Zealand

mv Mondi welcomed by PNGPCL

PNG Ports Corporation Ltd’s new pilot vessel mv Mondi (pictured) was officially welcomed at its Christmas function in Port Moresby last Friday evening.

mv Mondi is named after the wife of PNGPCL chairman Dr Ila Temu, who officiated last Friday.

The 13.67m boat, with an aluminium superstructure and powered by two Caterpillar engines, was bought from Bundaberg Port Corporation in Australia

Dr Temu thanked PNGPCL board of directors, CEO Brian Riches, management and the pilotage department for naming the newly-acquired boat after his wife.

Dr Temu said the board, as part of its strategic direction to move forward, had provided the CEO:

• The mandate to expand existing company operations to include harbour management and additional pilotage services;
• Set up the operating vehicle for harbour management; and
• Expand the pilotage service and fee structure.

“The board is aware that PNGPCL is in the process of implementing a strategic plan to identify direction of pilotage services and revenue opportunities, e.g., Australian Reef Pilots,” he said.

“We are committed to support the PNGPCL management in meeting challenges by facilitating economic growth through quality and efficient service delivery, profitability, sustainable investment in infrastructure, exceeding stakeholder and shareholder expectations and meeting legislative and community service obligations.

“The company is currently continuing its organisational restructure, revitalisation of services and rehabilitation of facilities throughout PNG.

“We are proud to be the only pilotage service provider in PNG.

“With the inclusion of mv Mondi, PNGPCL’s pilotage services will be boosted at its Port Moresby port/harbour.

“PNGPCL is aiming to boost the pilotage capacity from its current 15 to 20 pilots with the assistance of Australian Reef Pilots,

“We plan to have more pilotage boats as well for the pilotage department going forward.”

PNGPCL CEO Brian Riches admitted that currently resources in its pilotage division were limited.

“Resources include human resources and infrastructure, each of which require considerable investment to expand and provide an expanded service to other ports and provide reef and coastal pilotage services,” he said.

“Prior to a pilotage strategic review undertaken earlier this year, PNGPCL had estimated that it would have to increase its pilot numbers from 15 to 20 over the next five years.

“PNGPCL, with technical assistance from Australian Reef Pilots, has acquired the mv Mondi to boost its pilotage operations.

“In addition, there is the possibility to develop coastal pilotage services with some initial partnership approaches with Australian Reef Pilots.”