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Thursday October 11, 2007
ABCO welcomes K50m allocation to fix Lae roads

 

Mainland Holdings, whose subsidiary ABCO Transport is one of the largest trucking firms in the country, said the announcement of a K50 million allocation by the government to fix Lae roads was a welcome start.
The first part of K25 million was allocated in the Supplementary Budget on Tuesday.
According to experts, the total cost of rehabilitating the entire Lae city roads may be in excess of K100 million.
Group general manager of Mainland Holdings Graham Pollok said: “The K50 million promised by Governor Luther Wenge is a welcome start to address the problem but the city managers will still be faced with the dilemma of how to use inadequate funds wisely.”
He said city managers must decide which roads to be rehabilitated, what materials to use and the life expectancy of the roads that would be repaired.
on a few main thoroughfares constructed to last 10 -20 years or a wider ranging program that will result in the city facing the same problem in three to five years.
The K1.3 billion Supplementary Budget had the majority (K893 million) allocated to public infrastructure and maintenance.
Mr Pollock said they would have to decide on a few main thoroughfares constructed to last 10 -20 years or a wider ranging program that will result in the city facing the same problem in three to five years.
He suggested that when deciding the materials and system for rehabilitating the roads, Lae city authorities must specify to the engineers what life expectancy it was prepared to pay for: five, 10, or 20 years, then the engineers could design the most cost effective solution.
Mainland Holdings operates a vehicle fleet of over 200 vehicles with annual costs to repairs and maintenance in excess of K5million..
“The dreadful state of the Lae roads and in our main operating area at Ten Mile on the Okuk Highway, are a major contributor to these high repair and maintenance costs,” Mr Pollok said adding the company had to regularly repair damages to suspension and chassis.
He said the high road and security costs are regrettably an everyday factor affecting all businesses that manufacture and operate in Lae.
Recently Lae MP Bart Philemon said ‘despite the roads being bad business in Lae was good’. Asked to comment on this Mr Pollok confirmed that for MHL, like many others business is profitable.
The added costs he said are “factored into the costs of the products we manufacture and distribute.
“This means it is the ordinary Papua New Guinean who is paying for increased costs generated by abysmal infrastructure and essential security.”
Recently Lae Chamber of Commerce president Alan Mclay refuted claims by this newspaper that the business community had plans to pass on the road maintenance costs to the public. Ends/480 words
 

        

 

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