Log exports bring in K9.2bil

By LUKE KAMA
Log exports earned K9.2 billion for Papua New Guinea from 2008-2018, according to the PNG Forest Authority (PNGFA).
Acting managing director Goodwill Amos told the leaders’ summit last week that between 2008 and 2018, total export volume of logs reached 34 million cubic metres, generating K9.2bil in export earnings.
Amos said log exports continued to be the country’s largest forestry export earner.
“Since 2008 to Sept 2018, total export volume of logs in Papua New Guinea reached 34 million cubic metres,” he said.
“The total FOB (free-on-board) value for that volume over that same period reached K9.2bil.”
Amos said the Government, from that same volume over that same period, earned K2.67bil through log export tax and log export development levy (LEDL).
“It is important to keep in mind that Government earnings above K2.67bil are separate from an estimated K620mil in royalties, premiums and levy payments to landowners, K50mil in forest management levy (FML) and restricted forest license (RFL), K20mil in provincial, district and local level government levies as well as investments in major infrastructure developments and other direct capital investments in the areas of domestic processing,” he said.
Amos said domestic wood processing had accounted for only 2.1 per cent of the total exports volumes in 2016: 6.8 per cent of total FOB value.
“PNG’s wood processing industry includes sawn timber, plywood, veneer and furniture components,” Amos said.
“The domestic wood processing industry comprises mainly of small-to-medium scale enterprises.”