Unequal size of import-to-export cargo causes freight cost to rise

The unequal size of import-to-export cargo adds to slow turnaround times and high costs paid by freight carriers, says Lae Chamber of Commerce.
Many aircraft and ships bringing goods to the country often leave empty or carry back exports at volumes lower than their capacity, affecting local logistics costs, the chamber said.
National transport infrastructure plans outlined in the long-term development plan Vision 2050 will pave the way for cheaper transport costs, it said. Currently the extraction industries continue to provide short-term logistics opportunities but investment in transport infrastructure is expected to provide a boost to the logistics sector in the long run.
According to DHL Express country manager Mark Schell, logistics services experienced high levels of growth during the development stage of recent large-scale liquefied natural gas (LNG) undertakings, only to fall back to pre-construction levels once the work was completed.
In June last year, the government secured a K3.19 billion loan from the Asian Development Bank (ADB) to upgrade and maintain the Highlands Highway. The project is planned for 10 years from 2017 to 2027. It will involve the rehabilitation of large stretches of the 1200km route.
In addition, the investment programme will support the establishment of logistics platforms and services for agricultural production, as well as help modernise other forms of transport infrastructure.