PNG Ports enacting new tariffs

THE PNG Ports Corporation Ltd will implement the new essential port services tariffs and the 2020 non-regulated and pilotage services tariffs from Jan 1 next year, says managing director Fego Kiniafa.
He said given the downturn in economic activities recently, plus the escalating Coronavirus (Covid-19) pandemic, PNG Ports would not adjust the non-regulated prices in 2018, 2019 and 2021.
The new rates for 2022 non-regulated services are yet to be determined.
Kiniafa said PNG Ports’ core services included wharfage, berthage, berth reservation and stevedoring access.
The services are regulated under the Independent Consumer and Competition Commission (ICCC) Act 2002 through an enforceable and binding regulatory contract.
The services are referred to as essential port services or regulated services. “The regulatory contract underpins the regulated price path (the formulae agreed between the ICCC and PNG Ports which determines the prices for each year), the accompanying regulatory principles, minimum service standards, and the regulatory reporting requirements to be implemented by PNG Ports for a minimum period of five years for all essential port services namely, berthage, berth reservation, wharfage including services connected to the regulated services. With 80 per cent of the ports PNG Ports operate being community service ports, that is they could not operate on a standalone basis without significant price increase to be able to fund their operational and capital costs, this mechanism enables PNG Ports to cross-subsidise and keep costs to the users lower.”
PNG Ports has authority over declared ports and manages 15 declared ports including the two largest ports in Lae and Motukea/Port Moresby.
It also manages ports in Aitape, Alotau, Buka, Daru, Kavieng, Kieta, Kimbe, Lorengau, Madang, Oro Bay, Rabaul, Vanimo and Wewak.
PNG Ports has a delegated authority by the Department of Transport to provide harbour management and maritime compliance responsibilities at all land and/or water interfaces and in declared and non-declared ports and harbours.