Official explains benefits sharing

THERE is an understanding that a port operator and landowners have a 70:30 equity sharing benefit, on official says.
In Lae, it means that the International Container Terminal Inc (ICTSI), a Philippines-based container terminal operator and the Aihi and Labu landowners will share the benefits of the Lae port and tidal port on that basis. The company operates 29 container terminals in Africa, Europe and Asia.
Riback Stevedoring Ltd general manager George Gware said the 30 per cent equity had been agreed upon by the Government.
The Aihi and Labu landowners will share the 30 per cent equity.
The biggest benefit in the new setup is the changing rate and the investment that will be pumped into the port by the operator company which will be significant.
“In terms of financial value, we currently receive a small portion of it. But in the new arrangement with ICTSI, landowners, port operators and others operating at ports will receive a bigger portion,” Gware said.
He said a meeting with the operator in Port Moresby last week agreed that some equipment and expertise available locally would be reserved while those not available would be brought from abroad.
Gware said the up-skilling and training of local workers was also in the mix.
“There will be opportunities for skilled people to undergo further training and up-skilling to handle port machineries and the new port technology that will accompany ICTSI operations in Lae and Port Moresby,” he said.