NATIONAL MARITIME SAFETY AUTHORITY (NMSA)

Transcription

1 NATIONAL MARITIME SAFETY AUTHORITY (NMSA) Theme: High level meeting on Strengthening Inter island Shipping and Logistics in the Pacific island countries

2 PRESENTATION OUTLINE Salutations Background Information on the Maritime Sector in PNG Challenges Moving forward

3 SALUTATIONS NMSA Board Members, Minister for Transport and General Manager/CEO NMSA

4 BACKGROUND REGULATOR (Statutory Authority) PORT AUTHORITY (State Owned Entity)

5 PORT STATISTICS OVERALL PERFORMANCE IN 2012 Kimbe Port, PNG Reduction in vessel calls does not mean that lesser ships are berthing at Ports in PNG, but rather it represents that more larger and bigger ships with larger tonnage and container carrying capacity are entering PNG. Noting that this is also an international trend.

6 NATIONAL MARITIME SAFETY AUTHORITY OF PNG CHALLENGES PNG PORTS CORPORATION LIMITED 1. Non compliance of shippers with PNG Maritime Laws and Regulations 2. Non compliance of shippers with International Maritime Conventions 3. Lack of enforcement 4. Lack of in country skills 5. Lack of Government assistance to fund recurrent activities 1. Deterioration of port infrastructure 2. All ports are common user ports with no dedicated user facilities 3. Port infrastructure is not adequate to handle current cargo volumes and ship calls 4. Port facilities do not meet international security, safety and operations standards 5. Lack of in country skills 6. Lack of Government assistance to fund much required infrastructure upgrades

7 CHALLENGES Port Moresby Port TO THE CONSUMER 1.An expensive shipping service 2.Expensive goods 3.Lack of economies of scale because of geographical locations Result of a very costly Supply (Value) Chain at each segment of this chain, a margin is added to meet the cost of logistics, thereby making the value of shipping services and values of goods very expensive. An example, is PNG s No. 1, corned beef Ox & Palm. It is PNG Made, but it costs PGK12.00 (FJD10.00) for a 500gram tin. Why is such a small, PNG made product so expensive? The cost or bringing in the factory materials, the canning materials, the condiments into PNG is very expensive, and so the PNG manufacturer has to add a margin to cover these costs plus a profit, to ensure sustainability of PNG s No.1 corned beef.

8 MOVING FORWARD Examples of Reports, Articles and Programs Oceanic Voyages, Aviation and Shipping in the Pacific, ADB Pacific Studies Series, 2007 Pacific Regional Transport Study Final Report Vol.1, 2004 ADB and New Zealand Partner to Help Improve Domestic Shipping Services in Vanuatu, Pacific Islands Business, 2012 Pacific Islands Shipping Initiatives, SPC RMP, growth workprogramme/aviation 1/shipping.html 1. PICs develop and strengthen National Transport Plans Regional focus: Look across all PIC National Plans and identify common goals and strategies realign and target as a region to achieve these goals using the common strategies identified 2. Government subsidies Regional focus Look at Governments sharing the costs of subsidising some of the safety, marine environment & logistics costs within the Region, to encourage shipping within the Region and also encourage economies of scale 3. Promote hubbing PICs Regional focus: Reducing logistics costs within the Region, but ustilising hubbing ports as holding bays for goods to be distributed cheaply within the Region

9 Lae Port, PNG Thank you NATIONAL MARITIME SAFETY AUTHORITY (NMSA) OF PNG Working together to build a stronger industry As a sign of soliditary and cooperation, this Post Courier Photograph taken by Raksy Heron showing the then members of the PNG National Maritime Safety Authority aboard at the NMSA 5th Anniversary in 2010 potrays the recent call made by the General Manager and Chief Executive Officer of NMSA, Mr. Chris K. Rupen, pictured far left sid that the authority is seeking to work more closely with the shipping industry to improve safety and overall industry performance. The then Board members pictured, Anne Gilmore (pictured to the right of Mr Rupen), represented the Shipowners Association; Brian Riches, the then CEO for PNG Ports; Donald Hehona from the Department of Treasury and, Henry Parakei former Secretary for Transport each represented a seperate sector of the industry. Mr Rupen noted that there would be many benefits to the public as well as the PNG economy from closer cooperation between NMSA and other government authorities with shipping lines that were the lifeblood of the nation s export trade and the increasing level of coastal trading activity. NMSA Maritime Tok, 2012