Profit boost for Ports

 IN the past year, PNG Ports Corporation Ltd (PNGPCL) has doubled its financial result due to increased efficiency programmes and strict control measures at the ports, board chairman Nathaniel Poya says.

Poya (pictured) said PNG Ports profit after tax for 2014 was K51 million.

“These results come at the back of a stabilising economy with revenue from slightly higher than those of 2013 due to increased efficiency programmes at the ports and strict control costs measures which has kept costs under 6 per cent to that in 2013,” he said.

Poya added that PNG Ports was almost up to date with its statutory tax obligations. 

“PNG Ports settled the 2011 income tax of K12.5 million and lodged its’ returns for 2012 with its 2013 return expected to be lodged this month.

“During the last financial year, PNGPCL paid approximately K39.5 million in taxes to the Internal Revenue Commission,” he said.

Other outcomes for PNG Ports in the last year Poya highlighted include the “successful completion of the 2013 audit, the asset verification exercise and the roll out of the accounting and terminal operating system to Madang port 1, bringing the number of ports that are using the Klein & Technology one operating system to five”. 

“Rabaul and Wewak ports are going to be next to use the new operating system which we envisage to be completed by June 2015,” he said. 

“The Klein N-Tier upgrade is currently in progress, when completed, it is envisaged to improve productivity and efficiency of operations of these ports. This will enable productivity gains for all stakeholders involved in the logistics chain and trickled down through economy.”

On a comparative standpoint, PNG Ports has reduced its costs by 10 per cent in 2014 and increased its revenue by 12 per cent. In terms of total cargo revenue tonnage in 2013 was approximately 7.36 million revenue tonnes.

In 2014, PNGPL recorded approximately 7.5 million revenue tonnage.

The company handled 342,190 containers in 2013 and 347,830 in 2014. 

During this period vessel calls were lower than 2013 due to shipping agents utilising bigger vessels owing to economies of scale and scope considerations. 

The ports of Lae, Port Moresby, Kimbe and Madang to some extent remain key profitable ports.

PNG Ports has delivered key infrastructure roll out throughout its port network such as the Alotau Wharf extension, Oro Bay trestle completion, Lae berth 3 extension, Kavieng hardstand area for container storage and reefer points, generator sets and business manager’s residences at both Kieta and Buka. 

The Kimbe Coast wharf upgrade project has started and is expected to be completed by June.