By JASON SOM KAUT
THE public is expected to be hit with more price increases because of a rise in user fees at wharves under the control of the PNG Ports Corporation Ltd, formerly the PNG Harbours Board.
But PNGPC officials yesterday played down the significance of the increase announced, which had been published in the media recently.
PNGPC said companies will pay an additional two to five toea in tariff costs this year following approval by the Independent and Consumer Competition Council (ICCC) last December.
It maintained that the increase was lower than last year’s increase of 3% and covers PNG’s 14 operational ports nationwide and was effective on four days ago.
It covers wharfage, berthage services, berth reservations and applies to PNGPC wharves, jetties, ramps and piers.
The amount charged for the conveyance of goods is basically at the rate per unit multiplied by the number of units loaded or unloaded. It also applies to passengers travelling between its ports.
Acting CEO of PNGPC Joshua Taruna said whilst concerns were raised by businesses, the rise was “about two to five toea increase” and was actually less than last year’s increase.
Mr Taruna said the rise was due to “increasing material and operational costs”.
Businesses houses contacted by The National over the increase in fees, are of the opinion that whilst the increase may appear minor, it would still affect their operations as they had been recently slapped with a 13% increase in diesel and fuel prices and a proposed 9.16% increase in PNG Power costs.
Ramu Sugar’s sales and marketing manager Greg Baker and National Rice Distributors managing director Patrick Wong yesterday shared these sentiments.
Mr Baker said: “Whilst it may appear a relatively small increase, when combined with other increases and impending land and sea freight costs, it does not auger well in particular for the manufacturing industry in PNG.”
He said ultimately it will be the grassroots consumers who will bear the brunt of increasing costs in services and utilities through higher prices of food items in shops.
Mr Wong said his company imports rice from Asia and they were waiting for the actual increase to factor into their operational costs to determine whether to pass on the costs or not.
He said the firm would not pass on the costs if overall it was a minor increase in their operations.
“If it is major one, we will have no choice but to pass it onto customers,” Mr Wong said.
The increase in port fees comes as businesses eagerly await new fuel prices expected to be announced by ICCC this month, with prediction it may go up because of a surge in world crude oil price.
Trucking firms and boat owners have complained bitterly about high operational costs, and customers have recently complained of sharp rises in prices of some basic goods, including food items.