Conn: Slow clearance time affects business

By MALUM NALU
BUSINESS is becoming more costly and difficult in PNG because of the time it takes to clear cargo at the port, according to the Port Moresby Chamber of Commerce and Industry.
Chamber chief executive officer David Conn, a former chairman of the Port Moresby Port Users’ Group, told The National that it was now taking 10 days on average to clear goods. There were cases where it had taken four to six weeks.
He estimated that costs of doing business since the start of the LNG project had skyrocketed to 250% – which was ultimately borne by the consumer.
He said in other countries, it took only two days maximum to clear goods at the port.
“Ten days is a very rough average (to clear goods at the port), but we are often hearing of cases where it has taken four to six weeks,” Conn said.
“Several companies we approached said their experience is that the clearance time has doubled from two weeks to anything from four weeks or more.
“Last year, it took seven to 12 days; two years ago, it took six to seven days.”
This is a matter which gravely concerns the chamber, as costs associated with the prolonged port clearance, are passed on to consumers.
“As we have said so many times it becomes more and more difficult and costly to do business in PNG,” Conn said.
“The flow-on effect is that it affects the grassroots people most with the cost of food going up massively.
“A high-cost society puts more low income consumers under increased pressure and this is clearly reflected in Port Moresby in incidences of opportunistic, petty crime and increased social issues such as alcohol abuse, violence in our settlements and general lawlessness and unaccountability among our citizenry and youth.
“Freight companies are losing time with loaded trucks sitting at the wharf, waiting for storage cheques to be written up and delivered back to the wharf, which must happen after the truck is loaded, but before it can leave the wharf,” he said.
“There is no such thing as pre-clearance for sea cargo anymore with Customs – this creates delays of up to a week just on that.
“PNG Ports, like all state-owned entities, is forced into a cost-recovery mode, but there are serious maintenance issues on Port Moresby main wharf, and if a user-pay logic is to be followed, prices can only skyrocket.
“Surely the government has to kick in somewhere, as these are essential services that keep the cogs of the economy ticking over.
“We note a recent dividend payment to Independent Public Business Corporation by PNG Ports and it should be expected that port costs would drop as under the current Independent Consumer and Competition Commission regulatory contract pricing was based on this not having to happen.
“If PNG Ports can afford to pay a dividend then the regulatory contract requires them to lower the costs to users.”