Planning dept reviewing free freight scheme, says Basil

By GLORIA BAUAI
The free freight scheme between Bismark Maritime and the Government may be renewed with a few changes, says Minister for National Planning and Monitoring Sam Basil.
Basil said discussions were underway, with a likely chance of this arrangement being rolled over, but this time, as a joint-subsidised arrangement.
“We want this arrangement to continue as a subsidy but we are considering 75 per cent of freight to be paid by the Government and the 25 per cent to be met by the shipping company,” he said.
Basil said the scheme was initially for the Covid-19 state of emergency earlier this year.
The service level agreement signed with Bismark Maritime was to allow and maintain continuous supply of fresh produce and vegetables from the Highlands, Madang and Morobe provinces into the National Capital District during this period.
The Government, through the Department of National Planning and Monitoring signed a K3 million agreement in April this year with the shipping company for the shipment of fresh produce from Lae to Port Moresby.
Basil announced the deal on April 27 following the signing of a service level agreement by the secretary Koney Samuel on behalf of the department as implementing agency.
However, a month into the arrangement, there were allegations the shipping company did not handle the fresh produce and vegetable well, resulting in damaged or rotten vegetables on arrival in Port Moresby.
Nevertheless, Basil said this arrangement may continue, and an official announcement would be made at a later date with details.
“For now, we are waiting for the chairman of the department to make a decision,” he said.
The freight subsidy ended on Monday.
Bismark Maritime said all shipment of fresh produce and vegetables from Lae to Port Moresby would carry full freight cost until the Government made a decision on the next phase.