PAPUA NEW GUINEA

EMERGENCY PREPAREDNESS

OPERATIONAL LOGISTICS CONTINGENCY PLAN

PART 2 –EXISTING RESPONSE CAPACITY &

OVERVIEW OF LOGISTICS SITUATION

GLOBAL LOGISTICS CLUSTER – WFP

FEBRUARY – MARCH 2011

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A. Summary

A. SUMMARY 2

B. EXISTING RESPONSE CAPACITIES 4

C. LOGISTICS ACTORS 6

A. THE LOGISTICS COORDINATION GROUP 6 B. PAPUA NEW GUINEAN ACTORS 6 AT NATIONAL LEVEL 6 AT PROVINCIAL LEVEL 9 C. INTERNATIONAL COORDINATION BODIES 10 DMT 10 THE INTERNATIONAL DEVELOPMENT COUNCIL 10

D. OVERVIEW OF LOGISTICS INFRASTRUCTURE, SERVICES & STOCKS 11

A. LOGISTICS INFRASTRUCTURES OF PNG 11 PORTS 11 AIRPORTS 14 ROADS 15 WATERWAYS 17 STORAGE 18 MILLING CAPACITIES 19 B. LOGISTICS SERVICES OF PNG 20 GENERAL CONSIDERATIONS 20 FUEL SUPPLY 20 TRANSPORTERS 21 HEAVY HANDLING AND POWER EQUIPMENT 21 POWER SUPPLY 21 TELECOMS 22 LOCAL SUPPLIES MARKETS 22 C. CUSTOMS CLEARANCE 23 IMPORT CLEARANCE PROCEDURES 23 TAX EXEMPTION PROCESS 24 THE IMPORTING PROCESS FOR EXEMPTIONS 25 D. REGULATORY DEPARTMENTS 26 CASA 26 DEPARTMENT OF HEALTH 26 NATIONAL INFORMATION AND COMMUNICATIONS TECHNOLOGY AUTHORITY (NICTA) 27

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MARITIME AUTHORITIES 28 1. NATIONAL MARITIME SAFETY AUTHORITY 28 2. TECHNICAL DEPARTMENTS DEPENDING FROM THE NATIONAL PORT CORPORATION LTD 30

E. PNG GLOBAL LOGISTICS CONCEPT OF OPERATIONS 34

A. CHALLENGES AND SOLUTIONS PROPOSED 34 MAJOR PROBLEMS/BOTTLENECKS IDENTIFIED: 34 SOLUTIONS PROPOSED 34 B. EXISTING OPERATIONAL CORRIDORS IN PNG 35 MAIN ENTRY POINTS: 35 SECONDARY ENTRY POINTS: 35 EXISTING CORRIDORS: 36 LOGISTICS HUBS: 39 C. STORAGE: 41 CURRENT SITUATION: 41 PROPOSED LONG TERM SOLUTION 41 DURING EMERGENCIES 41 D. DELIVERIES: 41

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B. Existing response capacities

Here under is an updated list of the main response capacities currently present in the country.

Name of Organisation Activities related to EP / ER

PNG Red Cross  Training of volunteers in First Aid  Placement of containers containing emergency relief items at provincial branches  Permanent presence in many provinces.  Worked on cholera outbreaks  No collaboration with PNG Defence Force

Oxfam  Have active preparedness and response programmes (mostly internal)  One dedicated DM Officer  Offices in POM, Buka and Goroka.

World Vision Pacific  Full-time officer for DM Development Group  Prior successful experience in CBDRR from Manam

 Offices in POM, Madang and Buka 

Save the Children  Active in five provinces: East Sepik, Madang, Morobe, Eastern Highlands and NCD  Ongoing programme has Disasters and Emergencies as cross-cutting issue 

Caritas  Have dedicated DM desk and disaster programme  Encouraging diocese in high risk provinces to develop DRM action plans 

Salvation Army  History of involvement in relief efforts 

CARE International  CARE currently delivers programs in Highlands and Bougainville.  Extensive knowledge of the Hughlands  Have an active disaster response programme.  Active in facilitating community involvement in District Development Planning. 

Medecins Sans Frontieres (MSF) 

St John’s Ambulance  Important player in maintaining the National Communications Centre (5 ground stations) and Emergency Hotline (35 staff)  Links with Health Communications Network which

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has 2100 radios 

ADRA  Have a relatively small disaster response and relief programme. 

AusAID  Main support to both financial and operational sectors  Strong knowledge of the local realities  Real commitment to support PNG  Direct link with ADF

Department of Health  The DoH supposed to have medicines buffer stock.  Provincial capacities reduced IOM UNDP UNICEF UNHCR WHO  On national level WHO is closely involved in disease outbreak monitoring and response.  Limited WaSH Contingency Stock in POM.  Able contributing to medical supplies.  Vaccines supply

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C. Logistics Actors

Here under is a list of the main logistics related actors active in the country.

a. The Logistics Coordination Group The LCG is a newly established1 sub-group of the DMT, in charge of the coordination and supervision of logistics activities linked to Emergency Preparedness and Disaster Management in Papua New Guinea.

It is composed by representatives of selected national agencies (both governmental and private) and international agencies, including the UN and the INGOs.

Among its areas of competencies, let’s mention:

 Logistics Preparedness plan o Logistics SoPs, including: . Global Logistics Concept of Operations for PNG, . Standardized documents . Procurement policy . 3Ws . CivMil coordination . Roles & Responsibilities of actors involved in Logistics o Update of the LCA o Design of operational contingency plans at provincial level o Capacity building and training plan for the key logistics actors o Facilitations measures aiming at improving the logistics preparedness, emergency customs clearance, stand-by agreements o Logistics Gaps assessment and measures to address those gaps.

 Database outlining locations in which NGOs, Red Cross and other International partners have pre- positioned relief supplies.

 Implement any other logistics and emergency preparedness activity identified by the LCG participants, approved and included in the workplan

b. Papua New Guinean Actors

At National level

NDC The National Disaster Centre was established by an Act of Parliament to manage and coordinate all disasters and emergencies in Papua New Guinea. The office is headed by Director General, who is appointed by the National Executive Council (NEC).

1 Supposed inception May 2011

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There are two divisions that made up the centre. Risk Management Division is responsible for preparedness and mitigation of disasters and emergencies, and the Government & Community Liaison is responsible for corporate affairs as well as deals with disaster response and emergencies in the country. Each division is headed by an Assistant Director.

The responsibilities of the National Disaster Centre as stipulated in the Act are to:  Advice National Disaster Committee on all disaster management and disaster risk management matters;  Coordinate national relief efforts;  Act as the secretariat to National Disaster Committee and its subcommittees;  Maintain a network of disaster management liaison officers;  Report annually to National Disaster Committee on its activities;  Provide advice and support for Provincial Disaster Committees;  Assist with disaster management training for all levels and sectors when appropriate;  Implement policies and decisions of National Disaster Committee.

Responses to emergencies or disasters roles lie with each respective Provincial Authorities. Both the National Disaster Centre (NDC) and the Provincial Disaster Committees have the primary responsibility for implementing and coordinating the disaster related activities before, during and after disasters and emergency situations.

PNGDF The Papua New Guinea Defence Force (PNGDF) could be activated to respond to emergencies of a national consequence and play significant roles in response activities, as noticed recently in disaster events in Oro, Aiatape, Rabaual and Morobe.

The Military Act 1962, s.22, provides that “the military at the request of the appropriate civil authority, the Defence Force or a part of the Defence Force, at the direction of the Minister, may give assistance to the civil power in the event of a civil disaster”.

The military involvement in emergency response includes – in theory - the deployment of assets, including aircraft; both fixed wing and rotary, transport, marine vessels and manpower. Most of the military assets that are mentioned are out of service or non-existent, which reduces the capability and capacity of the military to respond. The Defence Force operates under its own command structure and has considerable experience in logistics management and distribution. It also permanently collaborates with delegates from the ADF.

Approval to activate the PNGDF to respond and appointment of the Controller generally takes Parliament a number of days, leading to unnecessary delays that have implications for the affected population. Bureaucratic processes in times of emergency often inhibit resource deployment and assistance.

The Controller is often appointed from the Defence Force at the rank of Colonel, usually with a Police Assistant or deputy (and vice-versa). This appointment is based upon the experience of the appointee.

Professional development and training is critical for key staffs that are at the forefront of emergency responses, particularly in the role of Controllers. The appointed Controller may not have had the opportunity to work alongside those that are at the NDC and other support agencies. The role of the Controller is critical; it is also complex and demanding. It comprises a mix of responsibilities - management, decision making, coordination and leadership.

Funding approval to support the deployment of Defense Force assets is also an issue. Prior to deployment, a budget is required from the Defense Force which takes time to prepare and approve. Once the funding is approved by Parliament, it is made available - through the Treasury - to the NDC who has the responsibility for disbursement.

During some past events, the funding budgeted for the Defense Force has not been paid as planned.

Defense Force has no trained Search and Rescue capacity. However, on occasions, it has provided this service on an ad hoc basis, deploying soldiers with limited equipment and training to carry out search and rescue activities.

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Police The Royal Papua New Guinea Constabulary (RPNGC) is the national police force with jurisdiction throughout PNG. Each province has a Deputy Assistant Commissioner acting under the authority of the national Commissioner. The Autonomous Region of Bougainville’s unit of the Royal Constabulary is headed by an Assistant Commissioner of Police.

A major challenge for the Police is the ability to address response from a security/conflict dimension. Since many emergency events can spurn conflict situations, the Police must be able, amongst other concerns, to maintain regular contact with various levels of operational control. The need to bolster communications capacity has thus been identified as a significant challenge.

Disasters create complex problems for the maintenance of law and order and the performance of standard police roles. By virtue of its day-to-day role and 24 hours availability, the police is frequently required to accept the initial responsibility at disaster scenes. Initial actions can include establishing a command post, cordoning and containing the area and gathering initial information. In response to manmade emergencies they may also be involved in investigating the circumstances from a criminal culpability perspective. Coronial services and reporting to the coroner are also responsibilities of the RPNGC.

The RPNGC has experience in dealing with natural and manmade disasters of various scales; however they do have a number of obstacles that restrict and inhibit their ability to respond effectively and efficiently.

When a national disaster occurs a senior police officer is usually appointed as the deputy to the Controller who is generally a Military Colonel. If the disaster is manmade then a senior police officer may be appointed as the Controller and the military as a deputy.

A number of Senior Officers have strong qualifications and some have attended officer and other police related courses off- shore. At the recruit level, basic training is a six month program with a probationary period of two years. During that time there is no formal exposure to any disaster management education.

The RPNGC have some documented internal contingency plans in place and during disasters they develop Operational Response Plans in isolation of the other response organisations.

During response to emergencies and other incidents where police, fire department, ambulances and other agencies come together to respond, there is no common incident management systems that provides for teamwork, common terminology, operating structures, integrated communications and a joint plan of action.

The RPNGC are identified in the current legislation as members of the NDC and PDCs. Links between the provincial disaster responders on the PDC’s and the police varies from province to province depending on the level of activity within the Committee. As a consequence inter-agency planning, cooperation, coordination and importantly the building of sound relationships can vary.

Currently the RPNGC do not receive any form of warning information. They have a radio network that reaches Police Stations at community level, capable of being used within the police for warning distribution. However, their network is rarely used.

The ability of the public to contact the police during an emergency event by telephone or cell phone is also restricted. Currently the police do not have a national emergency telephone number or call center capable of receiving emergency calls.

The RPNGC have no ability to carry out Disaster Victim Identification procedures and there are no forensic services available in country.

Fire Brigade The Fire Service has, in relation to natural hazard events, and specifically in terms of earthquakes a responsibility for Urban Search and Rescue. To be able to fulfill this responsibility (and other emergency response functions) there is a need for continuous in-service training of staff. 8 | P a g e

St John’s Ambulances The St John Ambulance Service is well organized and provides a national ‘111’ telephone service capable of being called from any part of PNG, by mobile or land line. The operations-base monitoring these calls has a 24/7 capability, answering approximately 17,000 phone calls per month. The base also monitors the National Health Radio HF Network system, consisting of about 2000 sites across PNG. The service also administers a UHF trunk radio network for use by emergency services. St John’s also has an emergency services communications bus to enhance coordination of incidents. Regional operations centres are being established in Madang and Rabaul. The dispatch software is the same as that used by emergency services counterparts in Australia and New Zealand. The system enables use of Geographical Information System which provides for accurate GPS identification of each incident and operations vehicles.

 The St John’s in PNG has very strong links and interfaces with the Queensland Emergency Services and Johanitter (German based organization).  St John’s also participated in the recent Rationalisation Programme and is very supportive of the concept of a single commission to oversee the three agencies (Fire, NDC and St John’s).  St John’s is supportive of the need to establish a shared communications centre with the fire service.  St John’s is also keen to invest in volunteers for ambulance services and to provide as part of the training package information on disaster management.  The blockage to moving ahead with this proposal is funding.  St John’s owns and operates the ‘111’ service in Papua New Guinea and funding is not available to progress the communications center to a shared facility with other emergency agencies.

At Provincial level

PDC2 The Provincial Disaster Committees are established by Section 9 of the DM Act of 1987.

The membership is comprised of the:  Head of the Provincial Administration or in case of NCD, Manager of the National Capital District Commission as Chairman;  Provincial Police Commander or in case of NCD, Commander NCD/Central;  Provincial Works Manager or in case of NCD, City Engineer;  Provincial Health Advisor (Officer) or in case of NCD, Health Officer;  Officer-In -Charge of Provincial Affairs;  Officer-In-Charge of Delegated Functions; and  NGOs reps and other co-opted Members

The provincial Disaster Coordinator is the secretariat to the Provincial Disaster Committee (PDC).

The basic roles and functions of the Provincial Disaster Committees are to:  Provide and render advice to the Provincial Executive Council (PEC) through the Governor in ensuring that development plans for the province take into account hazards prone to the Province;  Conduct assessments on particular hazards prone or common in the province;  Prepare contingency plans for respective hazards and supervise the state of preparedness for emergencies in the Province;  Foster public awareness on natural phenomena and mitigation measures; and organize training of relief workers in the province.

2 For detailed information, please refer to the previous chapter dedicated to the Provincial level general capacities.

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Significant differences exist among the PDC. Several are quite structured, with skilled staff and clear responsibilities. Others – most often in the less disasters prone areas – only appointed one PDC coordinator, most regularly without specific objectives or budget to operate.

CBOs & FBOs In terms of membership, reach and services offered, faith based organisations (FBOs) and other community based organisations (CBOs) play a critical role in servicing the development needs of PNG‟s rural population. They are equally important role-players in the field of DM where they provide invaluable support in disaster relief efforts at local level. These FBOs and CBOs are often the only organisations that are able to reach isolated and remote communities.

Discussions with a number of these organisations suggest that, like the NGO community, they are interested and willing to become involved. The DM agenda in PNG can be hugely advanced if the NGO community commits itself to mobilizing the potential of the extensive voluntary social development networks in the country.

c. International Coordination bodies

DMT The UN driven Inter Agency Standing Committee Disaster Management Team (IASC DMT) provides one of the few fora for structured NGO/Government interaction. The IASC DMT plays a critical role in coordination of international and NGO response and relief in the wake of disasters in PNG, but to date it has played little role in advocating for, or coordinating, logistics preparedness activities between organisations.

The International Development Council In order to address the fragmentation within the NGO community, four international NGOs (World Vision, Child Fund, CARE International and Save the Children) have founded the International Development Council, which is envisaged to become an umbrella body for NGOs in PNG. Other NGOs have, since, joined the IDC

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D. Overview of Logistics Infrastructure, Services & Stocks

a. Logistics Infrastructures of PNG The poor condition of Papua New Guinea’s transport infrastructure inhibits mobility and makes basic services inaccessible to many households. A nation’s productivity and competitiveness is partly a function of its ability to move people and goods efficiently to markets. PNG’s fragmented transport network system limits the markets producers can sell to, fosters local monopolies, and raises costs considerably.

Ports

Introduction Approximately 60% of the population resides on the coast, rivers, and swamps suitable for water navigation. The state- owned enterprise, PNG Ports Corporation Limited (PNGPCL), operates 16 large ports, 14 of which support both foreign and coastal shipping.

Lae is the largest port, followed by Port Moresby.

PNGPCL provides services on a commercial basis, but only two or three of the largest port recover operating costs. Mining, construction, shipping and other private companies operate 11 or more additional ports. There may be as many as 400 additional community-owned and operated piers, jetties and landings supporting small craft use in remote communities.

PNGPCL insists on the confidentiality of its port traffic indictors.

PNGPCL’s primary port, Lae, suffers from insufficient wharf space, limited storage capacity, and the absence of large-scale container handling equipment, while the country’s many loss-making ports have excess capacity. To address this, Lae port is undergoing a major expansion that should be completed by 2014.

PNG Ports has a large schedule of other major projects. There are long-standing plans to move the Port Moresby port to a larger site, a project likely to be delivered under a Public Private Partnership (PPP). In the meantime, there are plans to upgrade and extend existing wharf facilities in Port Moresby.

The ports of Lae and Port Moresby are also earmarked to undergo a significant remodeling exercise. Coupled with the introduction of harbor cranes, new container scanners and x-ray machines, significant efficiencies in cargo productivity, yard management and ship turnover are expected.

Another US$18 million project will see part of the Rabaul port rehabilitated for use by Nautilus Minerals for their proposed Solwara deep sea mining operation, while harbour cranes are to be installed in Lae and Port Moresby possibly through a joint venture with donors and private partners. P

NG Ports is also embarking on revitalizing its marine and harbour pilotage operations. Through an arrangement with the Australian Reef Pilots, a marine transfer operation is provided at Jormad Pass in Milne Bay Province for north and south bound vessels. As well as shorter journey times, the arrangement ensures that PNG’s marine environment is protected.

With a limited number of roads and a large number of widely dispersed islands, a lot of goods are transported around the country via a busy coastal shipping network.

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Among the international shipping companies servicing PNG is Swire Shipping, which recently improved its services between PNG, Australia and other South Pacific Islands. Swire now operates to the Pacific Islands on an 18-day frequency (down from 35 days) using two larger vessels, and between Australia and PNG on a seven-day frequency (down from 10.)

Papua New Guinea is central to a number of Swire Shipping trades and the region is a key focus for the group.

In terms of:

 Operations Management  Equipments  Infrastructures  Operating companies actives in the facilities  6 out of the 16 ports managed by PNGPCL are able hosting significant (as for the country) emergency operations = operational hubs  The remaining 10 have sufficient infrastructures acting as intermediate operational hubs. Nevertheless, as their equipment is good but basic (forklifts, trailers) and in limited quantities, a special attention should be paid before operating emergency activities in those ports  From a general point of view, Lae is the biggest port of the country in terms of volume of operations. It is also the one that has the best internal organization (Port Moresby port facilities being often congested), mainly relying on international operators with strong capacities. This is due to the already effective LNG projects ongoing on the Northern part of the Papuan Island.

Analysis of the Port Sector

Cargo Throughput

 Of 22 declared ports, PNG Port Corporation Limited (PPCL) operates 16 major ports, including two ports operated by its agents. The 16 ports are Aitape, Alotau, Buka, Daru, Kavieng, Kieta, Kimbe, Lae, Lorengau, Madang, Moresby, Oro Bay, Rabaul, Samarai, Wewak, and Vanimo. The other six ports are either not in operation or are operated by commercial entities.  About 90% of vessel calls and more than 80% of PNG’s international and domestic cargo are handled at PPCL-operated ports. The increase in cargo handled since 2002 is noticeable. The ports of Lae and Port Moresby account for over 70% of the total throughput. Kimbe represents 8%, and Rabaul, 6%.

Performance Indicators and Analysis

 Ports have always been a critical link in the logistic chain for international trade. More than 80% of internationally traded goods are shipped from ports. Globalization of production and the rapid expansion of the world trade have made ports even more important to economic development, as port capability and efficiency influence the location of plants or distribution centers and determine the competitiveness of local producers.  The port sector is particularly critical for a country like PNG, whose territory comprises 600 offshore islands. Of its 20 provinces, 15 are on the coast. More than 60% of the country’s 6 million people are widely dispersed across islands and coral atolls and along the banks of major rivers. There is no national rail or road network. Although 46 airports and numerous airstrips serve a network of scheduled, charter, and missionary air services, even to some very remote communities, air transport is too costly for any trips other than emergencies.  PNG’s economy is small and open and is highly dependent on trade, particularly exports, to generate economic growth and fiscal revenue. In 1980–2004, exports rose steadily from $985 million to $2,529 million, while imports had moderate growth. Exports increased from 35% of gross domestic product (GDP) in 1986 to almost 48% in 2002, and even reached more than 50% in some years. Imports, on the other hand, stayed close to 30% of GDP. More than 90% of the country’s exports are shipped from its ports.

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 Coastal trade, particularly outbound container cargo from Lae to other PNG ports, has been growing rapidly since 2001. Full outbound containers that year numbered 13,395 TEU; by 2005 they totaled 23,811 TEU, for an increase of 78%.  In sum, the port sector has a crucial role in the social and economic development of PNG. It is important not only for the adequate and efficient handling of exports and imports, but also for the efficient movement of goods and persons between the remote and sparsely populated areas on the mainland and islands and the centers of economic activity.

Lae’s Port

 The increase in vessel size and carrying capacity and the growing trend toward containerization have had significant impact on all PNG ports, particularly Lae port, PNG’s largest, busiest, and single most important port. Lae port handles about half of the throughput of the 22 declared ports and more than 60% of the international and coastal trade registered in PNGPCL ports, and generates more than 50% of PNGPCL revenue. It serves as a gateway linking the world market with a large hinterland comprising Morobe province, the city of Lae (the capital of the province, and PNG’s industrial and commercial center), and five resource-rich provinces in the Highlands. The hinterland is home to about half of the population and represents half of the territory. PNG’s most significant road, the Highlands Highway, runs from Lae to the Highlands region, dispensing imports ranging from heavy machinery to food products in the region and bringing the country’s major export items to Lae port. About 50% of PNG exports and 90% of coffee exports are shipped from Lae port.  Lae port has been adapting to the demands of container operations over the past 20 years. But investment in facility maintenance and expansion has not kept pace with the growing trend toward containerization and larger ships. The current five berths at Lae, with a total length of about 520 m, and a total storage area of 53,620 square meters (m2) for cargo marshaling, are aging and cannot handle increasing cargo volumes and ship sizes. Berth 4 for domestic ships can no longer accommodate these ships and is underused. Berth 1, with a total length of 123 m and water depth of 11 m, is suitable for overseas vessels but is now used as a domestic terminal. Overseas vessels are mainly served by berths 2 and 3, which have a total length of 307 m. As a result, port congestion at Lae is frequent, imposing high costs on port users. Port congestion also poses health and safety hazards, and the issue of compliance with the International Shipping and Port Security Code. As Lae port is the principal gateway for PNG, delays at the port have a cascading effect on other ports.  With a throughput reaching 2.4 million revenue tons, Lae port is operating at the limits of its capacity. The situation is expected to deteriorate, as the economic prospects for PNG remain strong, and the hinterland of the port is experiencing a boom in development. Some shipping companies have already purchased more ships, and are increasing their demand for efficient modern port infrastructure and management. Failure to expand capacity at this time and to manage Lae port more efficiently will dampen economic development.

The Challenges

The stagnation in private activities can be explained by the high costs of doing business in PNG, which are attributable to the following factors:  Corruption and serious problems with law and order - PNG is perceived to be one of the countries where corruption is rampant. It was ranked 162nd out of 180 countries by Transparency International in its 2007 Corruption Perceptions Index. Tribal conflicts and criminal activities such as rape, robbery, and murder are rising in PNG and have seriously damaged the country’s image. High turnover among qualified national and international staff results in high costs for both the Government and funding agencies. Businesses in PNG also suffer from high security costs and cite crime and theft as the prime impediment to investment. On average, companies in PNG spend about 12% of their gross income on private security and loss from theft. The high crime rates hamper economic activities and undermine investors’ confidence.  Poor infrastructure - Electricity is cheap by regional standards, but is available to only 60% of urban households. Many businesses are forced to run their own generators. Telecommunication services are costly and unreliable and are also restricted to urban areas. Only 11% of the national roads and 14% of provincial roads are in good condition. Half of the feeder roads are often impassable. Wharves, jetties, and airstrips have fallen into disuse. Some 60% of maritime navigation aids need replacement.

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 Weak institutional capacity - There is a shortage of skills in almost all professions. Labor productivity is low across all economic sectors outside mining and oil. Of PNGPCL more than 400 staff, only four are engineers—two at the head office and the other two working in Port Moresby.  Complex land ownership issues - The PNG landmass of about 462,000 square kilometers accounts for more than 80% of the land area in the South Pacific. However, mobilizing land for development purposes is very risky, costly, and time-consuming because more than 90% of the land in PNG is customarily owned, and land ownership is subject to considerable dispute. Even when land is sold, traditional landowners still refuse to give up their title. Customary land ownership has led to a vast amount of unused land. In the city of Lae, where there seems to be a severe shortage of commercial and residential land, idle land is everywhere, without any signs of development.

Airports

21 large-scale national airports managed by the National Airports Corporation (NAC) provide regular service for jet and large turboprop aircrafts; 20 secondary airports are owned by provincial governments, and another 450 or more small-scale aerodromes are the responsibility of local communities, church missions, and businesses.

The navigation equipment at most of the 21 national airports is old, unreliable and deteriorating. Rescue and fire-fighting services are only available at seven airports. Large aircraft introduced in recent years threaten to damage tarmac runway surfaces and endanger safety. Most national airports make financial losses on their operations. Losses from airport operations and a lack of national government funding have precluded investment in the air transport sector, although assistance from AusAID and ADB’s large Civil Aviation Development Investment Program (CADIP) MFF project is available.

The nation’s two regularly scheduled airlines focus on passenger service, carrying 1.57 million passengers to the 21 NAC airports in 2008. The flag carrier, Air Niugini, replaced smaller craft with F-100, Boeing 757s and 767s. While aircraft movements only grew 2% per annum 2005–2008, passenger traffic rose 7.5% per year. Airport safety, security, tarmac conditions, navigation equipment and communications failures often cause flight cancellations, raising airline operating costs and passenger fares.

In terms of:

 Operations Management  Equipments  Infrastructures  Operating companies actives in the facilities

 Only Jackson International Airport in Port-Moresby has the capacities hosting international operations. From a general point of view, POM is the biggest airport of the country in terms of volume of operations. It is also the one that has the best internal organization, mainly relying on international operators with adequate capacities.  xx out of those xx airports are able hosting international emergency operations, as they benefit from Customs presence  xx out of those xx airports are able hosting international emergency operations as they have secured runways and adequate security equipment to host international airplanes but no equipment or infrastructures to be fully operational.  Except for POM, a special attention should be paid before operating emergency activities in any other airport.  Lae has been designed as POM back-up airport but, in no sectors, could be compared to POM. This being said, a global upgrading plan exists for Lae airport, tending to improve all departments of the airport’s infrastructure 14 | P a g e

(length and strength of the runways, passengers terminal) and to build new infrastructures (new cargo terminal, storage area, warehouse)  Rabaul / Kokopo Tokua airport will also benefit from a runway extension.  In general, we recommend that any large humanitarian operation should bring its own airport operations team to run major air, transitional storage and transshipment operations

More than 500 local airstrips exist in all remote regions of the country (complete list in the LCA). As there are no centralized and updated information about the conditions of those local airstrips, we recommend:

 Using those capacities on a case by case approach  Have a prior contact with the small transport companies regularly operating on those airstrips for ad-hoc updated information on specific airstrips. MAF, the most important company perating on those local airstrips, is fully OK to provide details on those airstrips, on a case by case basis (security responsibility)  The department of Public Works seems to be somehow in charge of those airstrips, but it was, up until now, impossible getting clear information

RECOMMENDATIONS

The responsible agency for these capacities (Department of Transports, of Public Works, or any other) should be clearly identified and should edit a quarterly update about all local, provincial and national airports/airstrips capacities

Roads

A basic network exists of asphalt roads, essentially in the main islands to the locations of the major mining companies.

Sector Performance, Problems, and Opportunities3

The national transport network’s weak condition is often cited as a major constraint on economic growth and improved social service provision in Papua New Guinea.

Road Transport

The land transport system comprises the national road system (8,762 km), provincial (approximately 8,100 km), and perhaps another eight thousand district, local and other roads, and eight hundred bridges. The national road include 3,335 km of designated “roads of national importance,” often called “priority roads,” and the focus of most maintenance and improvement efforts. There are 2,647 km sealed roads, almost all in the national system.

Central Western Highlands, Eastern Highlands, East Sepik, Madang and West New Britain have the most extensive networks.

Apart from the Highlands Highway linking Lae with Goroka, Kundiawa, Mount Hagen, Mendi and their hinterlands, most of the national network is discontinuous, serving the relatively well-developed areas around the main commercial centers. The poorest parts of the country are the most poorly served by the road network.

Geographic features, most noticeably several very large rivers, divide the road system into several distinct networks.

3 ADB

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The road system’s length has not increased since 2000. The government’s current policy is to improve the existing road network, rather than expand it (expansion would deny maintenance funds to existing roads and result in a net system loss. Landslides, floods and other natural disasters are frequent, necessitating repeated emergency works.

Roads conditions are generally not good, but the Department of Works (DOW) has made considerable progress in maintaining, rehabilitating and upgrading national roads. The length of national roads classified in “Good” condition (according to the DOW’s RAMS database) rose from 17% in 2004 to 32% in 2010. Today, 48% of the priority roads are in good condition (even if the total number of km of those priority roads is very low …).

In general roads are confined to major centres with limited inter town highways. Due to a lack of regular maintenance, some highways and most of the feeder roads have deteriorated to such an extent that they are only accessible by 4wheel drive vehicles. The smaller feeder roads which link the main roads are mostly unsealed and in the rural areas the traditional bush tracks are still the only roads available.

The main highways are:

. The Okuk Highway (formerly Highlands Highway) o Runs from Lae through to Goroko, Mt Hagen and Madang . Hiritano Highway o Runs from Port Moresby through to Kerema . Magi Highway o Runs from Port Moresby through to Aroma coast

There is no road connection between Port Moresby and the Highlands, neither between POM and the MOMASE region (Morobe, Madang and Sepik provinces).

Other roads link major towns in several islands, like in New-Britain. For details, please refer to the main LCA document.

Here also, it is extremely difficult receiving updated and comprehensive information from a centralized agency.

Rural Transport

The impact of deteriorating accessibility on life in rural communities is evident in lower standards of health and education, declining availability of goods and services, and high-cost and unreliable transport services. Accessibility standards are declining. Already some 35 % of the population lives more than 10 km from a national road and 17 % from any road at all, and the roads are getting worse.

As roads have deteriorated, transport costs have increased from 40 and 60 % in real terms. Fewer market opportunities are available and people can afford fewer daily necessities. People are often reverting to a subsistence living or deserting the rural areas for the limited prospect of employment in urban centers. Health and education indicators are generally falling and government control is weakening.

 Security constraints are obvious using the main highways  Those highways cannot reach the majority of the villages, even if not too far from the main highway journey o Agencies are thus obliged using air assets to reach the final delivery destinations from the highway’s intermediate hubs.

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Waterways

Due to inadequacies of the road network and the expensive air services, the sea transportation remains part and parcel of the coastal and Islands areas.

There are scheduled passenger ship runs between Lae, the MOMASE and the Islands Region. There are also scheduled passenger service between Bougainville and the Islands.

Inland Waterways

According to 2003 data, the inland waterways are thought to amount to some 10,940 km. Under the National Transport Development Plan 2001-2010, the main aims were to:

1. Fund the economically feasible costs of maintenance, rehabilitation and construction of maritime facilities and the improvement of Navaids and boat services. 2. Establish a sustainable program to maintain the existing transport infrastructure such as ports, wharves and jetties, ramps, landing areas, pontoons and warehouses. 3. Ensure that half the total expenditure in water transport is devoted to maintenance of facilities and assets.

Just as for roads, budget allocations have not kept pace with needs. There is a substantial backlog to be dealt with.

Coastal Shipping

With its dispersed population, Papua New Guinea’s coastal shipping services takes on special significance in providing access to rural communities. Innumerable small wharves, jetties and beach landings provide the basic infrastructure for maritime services, but the majority of these is in poor condition and carries very little traffic.

The ports serving Port Moresby, Lae, Madang, Kimbe, and Rabaul carry international and coastal traffic and have a reasonable level of infrastructure, but lesser ports, ranging from those at Wewak, Kavieng, Oro Bay and Alotau to mere timber jetties and beach landings, provide only a basic service for coastal traffic and are often unusable in bad weather. Many landings involve loading and offloading over the ship’s side from/to small village “banana” boats and canoes.

Madang, serving many small coastal vessels, and Kimbe, serving agricultural exports, are the most frequently visited ports, but Port Moresby, Lae and Rabaul handle the most cargo; most imports pass through Lae and Port Moresby.

Lae is the main import/export point for the populous Highlands region, the goods moved from/to the port by road. Annual throughput by the major ports has been growing at about the rate of population growth with import/export tonnages (increasingly containerized, but also including a growing logging trade) accounting for about a third of the total and most of the growth.

Passenger cruise visits have started to grow, albeit from a low base. Coastal passenger operations are significant between the larger centers like Lae, Madang, Kimbe, Kavieng and Buka, but recent falls in traffic have led to some service reductions. Community-based services also extend to many smaller coastal villages, often in small, open, over-loaded craft operating over stretches of open sea without safety facilities or navigation aids.

Coastal services are of several types provided by: primary shipping lines, with scheduled or semi-scheduled services mostly focusing on the major ports; secondary shipping lines, also providing scheduled or semi-scheduled services to a mix of large and small ports; specialized, smaller and often regional shipping companies providing specific services to industry, including

17 | P a g e charters; operators of small commercial craft providing general goods and passenger services; community based organizations providing semi-commercial services mostly for their own members; and subsidized provincial government services.

For the most part, even between Port Moresby and Lae, the coastal routes are poorly-equipped with navigational aids (Navaids). The Fly River and its estuary is an exception; there, Navaids are maintained by private mining and oil companies. Elsewhere, local companies and community groups operate largely without charts or Navaids and rely on the local knowledge and skills of their ships’ masters. Sudden storms, mangrove swamps, shifting mud and sand banks and floating obstructions make journeys hazardous. Simple, low-cost Navaids would significantly reduce the risks involved.

The Community Water Transport project

The Community Water Transport Project is engaged (inter alia) in establishing and supervising the operation of subsidized transport services by water to remote communities that do not currently have adequate cash incomes to support fares for transport at the level of full operating cost recovery. A scheme of voluntary commercial contracts between the Government of PNG and private shipping operators to provide subsidized shipping has been devised and is being established in phases.

The phase 1 franchises, to be let in 2009 for a period of 3 years, consist of the following routes: - Sepik River in East Sepik Province - Huon Coast of Morobe Province and Oro Province - South Coast of East and West New Britain - South East Coast of New Ireland - Ramu River in Madang Province - Western Province

Depending on the success of these initial franchises and also the funding generated by the Community Water Transport Trust Fund, supplemented by GoPNG budgetary appropriations, a second and subsequent phases may be possible. Routes to be served in the second phase of franchises would be expected to cover additional remote communities that were not included in Phase 1

Storage

Except belonging to the private transport companies (for short term operations) and the Defence Forces, there is nearly no warehousing capacity existing in the country.

While the transport companies use their storage capacities to the upmost, some may be keen to provide ad-hoc support in time of emergencies.

The only storage capacities found in the country are using containers. The containers are bought, most of the times.

This can be explained by various reasons:

 The security issues, as warehouses are more fragile than locked containers  The costs, as he costs related to the whole building industry in the country are beyond understanding, nearly nobody is able paying for a proper warehousing system

This being said, containers storage is not adequate for maintaining the quality of the items (even if long terms containers are placed in secured environment, protected by iron corrugated roofs, etc.).

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The PNGDF storage capacities

The PNGDF has several storage capacities (usually huge warehouses) in several areas (Lae, Madang, POM …)

The PNGDF has a history of providing services to the humanitarian and development agencies (AusAID) for free temporary storage

Contingency Stocks Only a few agencies have a kind of pre-positioned stock of humanitarian items (= Contingency Stocks). Usually those agencies have 2 to 4 containers full placed in various locations in the country, most of the time close to the agency’s operations area.

RECOMMENDATIONS

- Have an inventory of the existing Contingency Stocks available in the country as well as of the stocks existing in the surrounding countries (Brisbane, Jakarta, Sydney, Manila, KUL, etc.). - Set-up a shared storage capacity for all humanitarian and emergency actors, in Lae (A protected warehouse in the former airport area) - Including stocks from the GoPNG, the Red Cross, the INGOs and the donors

Milling capacities

Flour Mills There are 3 Flour Mills in the country as well as other ones in the surrounding countries (Solomon, Fiji)

 2 Flour Mills are in Lae  1 in Port-Moresby

Those 3 units are able, more or less, to cover the needs of the country

These units are able providing adequate services to WFP (blending capacities, adding micronutrients, etc.) and are in accordance with the international standards of hygiene and protection.

On the other side, there is no Maize milling capacity in the country.

Rice Rice is slowly becoming one of the main staple food in the country.

Trukai, the main rice supplier of the country is present in all the major towns, with significant quantity and various quality of rice 19 | P a g e

b. Logistics Services of PNG

General considerations

As plenty major mining companies are present and operate consequent mining sites in the country, all major logistics services are consequently present in quality - even if the quantity of the offer is reducing due to the significant increase of the activities in the recent years.

The logistics services managed by the private sector are:

 Fuel supply  Transport : o Land o Rotor o Fixed wings o Shipping  Vehicles rental and procurement o All types  Heavy handling equipment  Power equipment

The quality of service provided by the private companies – most of the time with international capital – is significant, and the prices are related. The rates for those private services are also very high – preventing, as we believe, some social or humanitarian operations to take place.

The public sector logistic services – customs, electricity, public works, and telecoms – are of poor quality, unreliable and with a very low maintenance and repair.

Fuel supply

InterOil has the largest wholesale, retail and aviation petroleum product distribution service in Papua New Guinea. This is the result of the acquisition of BP's entire commercial and retail distribution assets through BP Papua New Guinea in April 2004 and the subsequent acquisition of Shell Papua New Guinea on October 1, 2006.

Their wholesale and retail distribution business supplies petroleum products nationally through an extensive portfolio of sea- board terminals & inland depots and retail service stations. InterOil currently supplies approximately 70% of Papua New Guinea's refined petroleum product needs.

2 other companies complete the sector of fuel distribution in the country: Niugini Oil & Mobil.

PNG is a fuel producer and its production currently covers the needs. A fuel refinery is operating in Prot-Moresby, producing 36.000 barrels/day.

The distribution prices of fuel are regulated by the ICCC on a monthly basis. Prices are different according t o the region.

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There is no recent history of fuel scarcity in PNG

Transporters

Due to the huge LNG projects, the whole mining sector is currently booming. This has an obvious impact on the country’s whole economy, even if the biggest Southern Coast LNG project is still in a construction phase and has not yet began to bring revenues to the country – starting planned for 2013.

As a consequence, for all type of transport, while existing in the country, the availability is now limited. This is particularly true for the air transport (both helicopters and fixed wings) as most of the mining industries are in remote areas, not – yet – reachable by surface transport.

As there is a competition for the availability of the assets, the prices are reaching peaks.

New operators are coming but not as quickly as the demand is rising.

RECOMMENDATIONS

All major emergency operations should be designed and implemented with their own transport capacities. This is particularly true for the air and sea transport (sea scheduled transport are too rare to be really efficient and the additional charter transport is facing the same scarcity as the air transport).

Heavy handling and power equipment

Can easily be found, while very expensive

Power supply

As all the other public services, there are obvious problems and gaps in the supply of electricity

An insufficient production – compared to the demand of a booming industrial economy – coupled with the country’s specific geographical conditions; explain the regular cuts in the electricity supply as well as the instability of the power supplied.

As a consequence, all the major economical actors have developed their own power plant, depriving the national power company from a major source of income and, hence, preventing it from developing its production and supplies toward the general population

RECOMMENDATIONS

All major emergency operations should be designed and implemented with their own power generation capacities – especially for field operations. The equipment, while very expensive, are easily found in the country

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Telecoms

Land lines and mobile telephone networks are provided by a state owned business enterprise, Telikom. New operators are coming, developing very quickly the global offer, mainly regarding the mobile network.

Those operators use the V-Sat technology to develop land lines and mobile telephone services as well as Internet offer. As the power of those V-Sat is ensured by solar panel, its reliability is quite strong. The mobile network coverage operated by Digicel is now reaching the most remote areas of the country.

This is of course a significant development regarding the communication with and from the remote areas.

The National Broadcasting Commission (NBC) a radio communication service is received by all centres around the country. Each province should supposedly have their own NBC radio station, but some have ceased operations due to lack of financial supports.

There are a number of commercial radio stations, based in Port Moresby and Lae.

Internet and e-mail services are provided by private internet service providers (ISP) and are utilized by some of the corporate bodies as a reliable and fast means of communication.

Both NBC and mobile phone networks are used for early warning.

RECOMMENDATIONS

As, in time of major disaster (cyclone, earthquakes …) all communication systems will probably be down for a significant period; and as the maintenance and repair services provided by the companies are not fully reliable, all major emergency operations should be designed and implemented with their own communication capacities. The equipment, while very expensive, are found in the country and the regulations process may be ensured by the local operators

Local Supplies markets

Even if nearly all NF humanitarian items (Shelters, cooking kits, hygiene kits …) may be found in the country, the local suppliers only maintain a minimal stock and are not ready signing stand-by agreement or buffer stocks agreement with the humanitarian agencies.

The biggest stocks operators may rely on turn around 1000 pcs maximum all agencies included.

Furthermore, as a real competition will happen, including the local and national actors, it is predictable that the prices will increase significantly during emergencies (noticed from past experiences).

Finally, the process for renewal of supplies in PNG is extremely slow and unreliable, up to 3 months.

RECOMMENDATIONS

As a consequence of this, all major emergency operations should be designed and implemented with their independent material for distribution. Stocks of humanitarian supplies exist in Brisbane, Jakarta, Manila, KUL, Sydney as well as in Dubai, Bangkok and other locations.

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Furthermore, Asian markets have easy and quick access to the world biggest and most reliable manufacturers located in developing Asian countries. This pipeline will definitely be faster and more reliable than any one involving the local suppliers.

Exceptions to this concern power generation equipment, heavy handling equipment as well as all the building material.

c. Customs Clearance

Import Clearance Procedures

The owner of the goods and anyone who causes the goods to be imported must retain all relevant records in relation to those goods for a period of 5 years from the date of import. If the owner or other person is selected for an audit these records will be examined to ensure compliance with the Customs Act. Failure to retain these records carries severe penalties including a term of imprisonment. http://www.customs.gov.pg/customs_act_2006.html

 Lodging an import declaration: The first stage of the import clearance procedure is to lodge an entry (Customs Form 15) through the DTI system. The entry can only be lodged by a licensed customs agent authorised in writing by the owner of the goods to act on his/her behalf. The customs agent will deal with all the requirements needed to clear the goods through Customs and Quarantine formalities.

 Documents to Be Submitted: The second stage is for the customs agent to print a hard copy of the entry and produce it to Customs at a designated Customs office with the following documents.

(1) Invoice showing the correct value, quantity, description, etc. (2) Bill of Lading or Air Waybill; (3) Packing List; (4) Customs Valuation Declaration (5) Certificate of origin and value (if applicable) (6) Import Permits/ Licences/ Applications, etc (if prohibited/restricted) (7) Any other documents as may be required by Customs.

 Check the Declaration and Supporting Documents: The third stage is the checking and verification of the declaration and the attached documents submitted to ensure the goods have been correctly classified using the Customs tariff, the correct value of the goods has been calculated and declared and the correct rate of duty has been applied. At a future date this check will only be required on nominated entries, all other will be electronically cleared.

 Payment of Duties and Taxes: The fourth stage is payment of applicable duties and taxes as detailed on the notice of assessment. There are currently two means for payment of import duties and taxes; these are by cash or by approved company or Bank cheques, payable at a Customs office. At a future date Electronic funds transfer will be a third payment option.

 Release of Cargo: Once payment has been made to Customs the owner of the goods may only take possession of the imported goods once all transport, wharfage and other fees have been paid. Goods remain under the control of Customs until they are lawfully removed from a Customs Controlled Area.

 Inspection: At any time up to the release of cargo from a Customs Controlled Area, Customs has the right to examine the imported goods to determine the nature, origin, condition, quantity and value of the goods declared to Customs. Customs may also examine consignments where intelligence and risk assessment indicates they may contain prohibited or restricted imports.

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Tax Exemption Process

Exempted goods The owner must still report the import of such goods to Customs in the same way every other person is required to report imports, but where the goods would normally have attracted duty, Customs instead applies a zero rate.

The power to exempt goods from duty lies with the Head of State who applies his powers, acting on advice, as stated in legislation such as the Diplomatic and Consular Privileges and Immunities Act, the Aid Status (Privileges and Immunities) Act and the Customs Tariff Act.

Goods imported under any of these exemption laws are relieved from taxes and duties, irrespective of their normal classification or normal liability, provided that they are imported in specified circumstances and for specific purpose.

Diplomatic and Consular Privileges Papua New Guinea is a signatory to the international agreement that governs the diplomatic relations between countries. This is known as the Vienna Convention. The privileges and immunities offered to foreign diplomats based in this country, including an exemption to paying Customs duties and other taxes, is exactly the same as those enjoyed by Papua New Guinea’s diplomats based in overseas missions.

Aid Status Privileges An organisation and personnel attached to those organisations may be granted by the Head of State, acting on advice, designated aid status. Such status frees the organisation or individual from the requirement to pay Customs duties or other taxes under certain conditions but imposes an end use obligation where such duties or taxes must be paid if those conditions are not met.

The privileges and immunities offered to designated aid status organisations ensures aid being provided to Papua New Guinea by foreign aid organisations is not impeded or restricted by Papua New Guinea’s domestic laws.

Contractors or Subcontractors to designated aid agencies may not be exempt from import duty and other taxes unless the contract with the aid agency specifically provides for it as per the provisions of section 8 of the Loans and Assistance Act. Further advice can be obtained by contacting the Tariff and Trade Branch of Customs.

Customs Tariff Act: Section 9 of the Act allows the Head of State, acting on advice, to either exempt from duty any goods provided that they are not being imported in relation to a commercial project or to substitute a reduced rate of duty for imported goods that would otherwise have attracted duty.

The Head of State has advised that the following exemptions apply with respect to:

- Goods which are imported by a community organisation, certified by the Secretary of the Department of Prime Minister as an organisation that is not engaged in any commercial activity but exclusively devoted to the public interest and relating to the advancement of education and vocational training; or the provision of medical services; and

- Goods for educational or training purposes: to be used by the education institutions or training institutions officially recognized by the Secretary for Education or the Commissioner for Higher Education; and not for sale, exchange or trade within 5 years; and which are imported on a firm and specific order; and which in the opinion of the Commissioner-General cannot be locally produced or manufactured; and certified by the Secretary for Education or the Commissioner for Higher Education to be necessary for the purposes of approved curriculum or of education or training institutions themselves; and if such exempt goods be disposed of within 5 years from the date of import without prior written approval of the Commissioner-General the duty apportioned in relation to the remaining unused period shall be payable; and when 24 | P a g e purchased on the basis of duty free quotation/tender, the sale price shall not exceed 120% of the C.I.F. value and is supported by import documents.

Other Exemptions under the Tariff Act: The Head of State has also reduced the tariff rates of duty in respect of specified goods originating from certain countries in the Pacific region and on other goods the importation of which assists local industry. For further details of these exempted goods importers are asked to contact the Tariff and Trade Branch of Customs.

Bi-lateral Treaties and Agreements: Papua New Guinea has Bilateral Trade Agreement/ Multilateral Agreements with countries and international organisations. Clauses or Articles included in the content of these agreements as per the provisions of section 8 of the Loans and Assistance Act provide for an exemption to pay Customs duties and other Tax under certain conditions. Such agreements usually impose an end use obligation where exempt duties or taxes become liable if those conditions are not met certain conditions are met.

The Importing Process for Exemptions So that exemption requests can be considered and a reply given within a suitable time period applicants are advised to submit their written applications together with supporting documentation prior to the intended arrival date of the goods.

Supporting documentation may include: a. Commercial invoice/s with the description of all goods b. Bill of lading or airway bill c. The inventory list of the goods in the consignment d. A copy of the Contractual Agreement between the Loan Provider and the contractor or Agreement with the Loan Provider and the State e. A copy of the Project Agreement between the State and the AID Provider.

Applications should be submitted to Customs marked for the attention of the Director- Tariff and Trade Branch. Customs will confirm receipt of your application and will process it as quickly as possible, although this may take a few days especially if Customs asks for further documentation in respect of the application.

If your application is successful you will be advised in writing and this advice must be produced with supporting documentation when your Customs agent lodges your import entry formally reporting the goods to Customs at the port of discharge.

Normal clearance formalities still apply to exempt goods and Customs or Quarantine may still inspect the goods. Goods are of a type that can only be imported under a permit or license will only be released on its production to Customs even if the goods are exempt goods. The importer is responsible for ensuring the importation of the goods meets the requirements of Customs.

Although the goods may be exempt Customs duty and other taxes, any charges levied by Quarantine or handling charges levied by the wharf or transport company are the responsibility of the importer and must be paid. This applies to any fees levied by the customs agent in clearing the goods through Customs formalities.

Delays in clearing exempt goods will occur if either the application for exemption is not made prior to the arrival of the goods and in sufficient time for Customs to properly consider the application or if the exemption approval letter is not lodged with the import entry. Customs is not responsible for any wharf charges or other costs incurred as a result of any delays in clearing exempt goods unless the importer can demonstrate that the delay occurred because of the neglect or wilful act of an officer. 25 | P a g e

d. Regulatory Departments

CASA For its size and population, PNG has a relatively well-developed system of air services (though it has been more extensive in the past), necessitated by its topography, the isolation of pockets of population and the difficulties in establishing road access. The main carrier is state-owned Air Niugini.

The recent reorganization of the Civil Aviation Authority, previously responsible for all aspects of national airports, places NAC in charge of on-ground airports operations and maintenance, while PNG Air Services Limited (PNGASL) is in control of communications and navigation. The Civil Aviation Safety Authority (CASA) regulates air safety.

The Civil Aviation Safety Authority (CASA) of Papua New Guinea is the government statutory authority responsible for the regulation of civil aviation and air safety. Registration of international airplanes, facilitation of emergency operations fall within CASA’s mandate.

Aviation House, headquarters of CASA. Formed 6 January 2010 Headquarters 6 Mile, Port Moresby, NCD

Department of Health

- National Department of Health AOPI Centre (South) Waigani Drive, P.O. Box 807, Waigani, National Capital District, Papua New Guinea Fax: (675) 301-3604

- Port Moresby P.O.Box 807 Waigani National Capital District, Papua New Guinea

Tel : 3013827 / 301 3826 Fax : 3013742 e-mail : [email protected]

- AUTONOMOUS REGION OF BOUGAINVILLE - PROVINCIAL HEALTH OFFICE Name: DR ANTHONY PUMPARA Postal Address: PO BOX 318, BUKA 355, AUTONOMOUS REGION OF BOUGAINVILLE

Phone: 973 9269 Fax: 973 9246/973 Email: [email protected]

- CENTRAL - PROVINCIAL HEALTH OFFICE Name: DR SYLVESTER KOTAPU Postal Address: FREE MAIL BAG, KONEDOBU 125, NATIONAL CAPITAL DISTRICT

Phone: 321 2580/7330/3895 26 | P a g e

Fax: 321 0967 Email: [email protected]

- EAST NEW BRITAIN - PROVINCIAL HEALTH OFFICE Name: MR BERNARD LUKARA Postal Address: PO BOX 464, RABAUL 611, EAST NEW BRITAIN PROVINCE

Phone: 982 8891 / 8445 Fax: 982 8470/8289 Email: [email protected] Govt Email: [email protected]

- WHO Country Office

Adu-Krow, Dr William The WHO Representative in Papua New Guinea,

Office address: 4th Floor, AOPI CENTRE Waigani Drive Port Moresby, Papua New Guinea

Postal address: World Health Organization P.O. Box 5896 Boroko, NCD, Papua New Guinea

Telephone no: (675) 325-7827 (675) 301-3698 (675) 325-2035 (direct) Fax no: (675) 325-0568 Email: [email protected]

NATIONAL INFORMATION AND COMMUNICATIONS TECHNOLOGY AUTHORITY (NICTA)

The National Information and Communications Technology Authority (NICTA) is the converged regulator established by an Act of Parliament, the National Information and Communications Technology Act 2009 (NICT Act).

The functions of NICTA include the issuance of all Telecommunications licences (Operator and Radio communications) as well as ensuring that provision of ICT services conform to National and International standards. The NICT Act allows for converged regulatory authority to address economic and consumer issues which were previously dealt by ICCC.

The NICTA Act further created a secretariat called the Universal Access and Fund Secretariat (UAF Secretariat) within NICTA to manage donor, government and industry levies used to rollout ICT projects to rural areas and communities around the country.

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Contacts:

EMAIL: [email protected]

TELEPHONE: (675) 325 8633

FACSIMILE: (675) 325 6868 or (675) 300 4829

POSTAL ADDRESS:

NICTA P.O. Box 8444 BOROKO National Capital District Papua New Guinea

Office Locations

Headquarters Corner Frangipani St. and Croton St., Hohola, PORT MORESBY

Operations Center Regional Office (Lae) Level 2 - Lae Post Office, 4th St., LAE, Morobe Province

Maritime Authorities

1. National Maritime Safety Authority

The National Maritime Safety Authority was established by an Act of Parliament in 2003 as a not-for-profit statutory authority, to raise standards of maritime safety and prevent and control marine pollution from shipping services within Papua New Guinea waters.

The Authority's primary responsibilities are to undertake government regulatory functions on safety of shipping services and to meet expectations of the shipping industry, its customers and coastal communities for a safe, efficient and environmentally responsible shipping sector as it is regarded very crucial to Papua New Guinea's social and economic development.

FUNCTIONS AND RESPONSIBILITIES

The Authority's functions and responsibilities are defined in the NMSA Act 2003 and are summarised under the following headings:

1. Maritime Safety

 Ensure a fully - functioning and effective network of maritime navigational aids;  Ensure the availability of high-quality, up-to-date navigational charts;  Ensure that vessels meet the safety standards required by PNG's legislation, regulations and commitments under International Maritime Organisation (IMO) conventions;

28 | P a g e

 Ensure seafarers competency through certification and documentation of work experience;  Help to coordinate responses to distress calls.

2. Marine Pollution Control

 Issue and enforce pollution control standards in accordance with international agreements;  Help to coordinate the clean-up of marine pollution;

3. Corporate Governance - Efficiency, Transparency, Accountability and Sustainability

 Maintain full cost recovery, control costs and ensure efficient and effective management reporting;  Equip Staff with the skills and resources needed to carry out their tasks efficiently and effectively;  Collaborate with international agencies, national, provincial and local governments and coastal communities;  Keep the public, industry and the Government fully informed of the Authority's activities.

NMSA Departments

Departments under Technical Division

 Ships Safety & Inspections Dept  Navigational Aids Dept  Community Development Dept  Hydrographic Dept

Department under Corporate Division

 Information Technology  Finance & Administration Dept  Human Resource Dept  Legal Dept

Offices

PORT MORESBY Level 2, Pacific MMI Insurance Building (Head Quarters) P.O. Box 668, Port Moresby National Capital District Papua New Guinea

Telephone: (675) 321 1244 Fax: (675) 321 0873 E-Mail: [email protected]

LAE Solwara Haus PO Box 578, Lae Morobe Province.

Telephone: (675)472 3404/472 1947 Fax: (675) 472 3465 Contact: Hanua Kora Email: [email protected]

RABAUL Section 51, Lot 04, Cleland Drive, Ah-tam, Rabaul 29 | P a g e

P.O. Box 1591 Kokopo, ENB Province

Telephone: (675) 982 1300 Fax: (675) 982 1148 Contact: Titus Kabiu Email: [email protected] Michael B Livinai Email: [email protected]

MADANG P.O. Box 1031 Kalibobo Street Madang, Madang Province

Telephone: (675) 852 2152, 852 2242

Navaids Depot P.O. Box 871 Madang, Madang Province

Telephone: (675) 852 6298 Fax: (675) 852 2694

ALOTAU P.O. Box 78 Sanderson Bay Alotau, Milne Bay Province

Telephone: (675) 641 1051 Fax: (675) 641 1180 Contact: Simeon Kamilo Email: [email protected]

2. Technical Departments depending from the National Port Corporation Ltd

Engineering The Engineering Department headed by the General Manager Engineering, is responsible for managing all aspects of infrastructure maintenance and development. Infrastructure includes wharves, storage areas, roads, drainage, paving, buildings and premises. Engineering is also responsible for repairs and maintenance of all buildings.

Engineering Department PNG Ports Corporation Limited Head Office: Stanley Esplanade, Port Moresby PO Box 671, Port Moresby. NCD. Papua New Guinea Phone:+675 308 4200 Facsimile:+675 321 1546

Operations The Operations Department headed by the Chief Operations Officer is responsible for managing all operational aspects of the all 16 ports to ensure that PNG Ports Corporation Ltd meets the needs of all stakeholders, achieve expected levels of productivity and efficiency and comply with both PNG regulatory requirements and international standards. Operations are also responsible for overseeing security and the management of pilotage services in all the ports. 30 | P a g e

Operations Department PNG Ports Corporation Limited Head Office: Stanley Esplanade, Port Moresby PO Box 671, Port Moresby. NCD. Papua New Guinea Phone:+675 321 1637 Facsimile:+675 321 1546

Finance The Finance Department headed by the Chief Finance Officer is responsible for the sound financial management of PNG Ports Corporation Ltd including preparation and monitoring of budgets, ensuring compliance with PNG Legislative requirements and financial reporting.

Finance Department PNG Ports Corporation Limited Head Office: Stanley Esplanade, Port Moresby PO Box 671, Port Moresby. NCD. Papua New Guinea Phone:+675 308 4200 Facsimile:+675 321 1546

Corporate Services The Corporate Services Department headed by the General Manager Corporate Services is responsible for providing support to the organisation through effective of human resource management, legal services, property management and employee housing, fleet management and procurement and community affairs.

Corporate Services Department PNG Ports Corporation Limited Head Office: Stanley Esplanade, Port Moresby PO Box 671, Port Moresby. NCD. Papua New Guinea Phone:+675 308 4200 Facsimile:+675 321 1546

Commercial and New Business The Commercial and New Business Department headed by the Chief Commercial Officer is responsible for maintaining relationships with stakeholders and developing new business opportunities. Corporate communication is a key focus for this department as the organisation seeks to rebuild its corporate reputation. The department also provides support to the organisation by way of financial and economic analysis which inform managerial decision making. Policy development and reporting on corporate performance to the Board are further responsibilities.

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Commercial and New Business Department PNG Ports Corporation Limited Head Office: Stanley Esplanade, Port Moresby PO Box 671, Port Moresby. NCD. Papua New Guinea Phone:+675 308 4200 Facsimile:+675 321 1546

Information and Communications Technology The Information and Communications Technology headed by the Chief Information Officer is responsible for IT and communications infrastructure including hardware and software, which is vital to the organisation as data management is critical to business success and running efficient and effective port operations.

Information and Communications Technology Department PNG Ports Corporation Limited Head Office: Stanley Esplanade, Port Moresby PO Box 671, Port Moresby. NCD. Papua New Guinea Phone:+675 308 4200 Facsimile:+675 321 1546

Maritime Compliance This division is headed by the Chief Maritime and Compliance Officer who reports to the CEO. The division is responsible for managing and controlling the overall physical environment of the ports, harbours and the facilities that are controlled and managed by PNG Ports Corporation Limited to ensure marine, companies and communities lives are protect and operate in a safe and clean environment. Furthermore, it is responsible for managing and maintaining the legal and regulatory compliance matters relating to safety, security and environmental concerns consistent with PNG Ports Corporation Limited policies and procedures

Maritime Compliance Department PNG Ports Corporation Limited Head Office: Stanley Esplanade, Port Moresby PO Box 671, Port Moresby. NCD. Papua New Guinea Phone:+675 308 4200 Facsimile:+675 321 1546

Business Assurance Business Assurance is headed by the Business Assurance Manager. Their main responsibilities are to provide assurance on the adequacy of the internal control system and in particular;

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 The extent of compliance with relevant established policies, plans and procedures;  The adequacy and application of financial and other related management controls;  The extent to which the PNG Ports assets and interests are accounted for and safeguarded from loss.

In other words they provide assurance to PNG Ports on best business practices and in compliance with the national statutory bodies policies and procedures like IPBC and IRC etc.

Business Assurance Department PNG Ports Corporation Limited Head Office: Stanley Esplanade, Port Moresby PO Box 671, Port Moresby. NCD. Papua New Guinea Phone:+675 308 4200 Facsimile:+675 321 1546

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E. PNG Global Logistics Concept of Operations

a. Challenges and Solutions proposed Organizing logistics activities for delivery and distrubtuon is a big challenge in PNG due to its difficult terrain, remoteness, road contiditon and transportation facilties. As said above, all actors agree that logistics was one of the major bottlenecks in all past emergency responses. As nothing really improved since, it is quite obvious that it will remain the same for the next operations. Here under are options or potential solutions – usually implemented in other international operations - to address the main gaps identified. This is regardless to the necessary framework, resources and procedures to implement those solutions.

Major Problems/Bottlenecks identified:

o Customs o Storage o Transport o Security o Operational Coordination & Preparedness o IM

Solutions Proposed

o Customs facilitation for registered agencies

o Storage . PNG has nearly no warehousing capacity at all level - capital, provinces and districts. The commodities are - as much as possible - directly transported to the final delivery points. . Humanitarian agencies will have to use their own mobile warehouses or in very few cases government provided warehouses. There are 3 PNGDF warehouses capacities in Lae, Madang and in POM, which have with a total capacity of xx,000 MT. o Potential Main Logistics Hub in Lae + related services . Customs facilitation . Shared storage for UN & NGOs . Operations Room . Centralized Information for Transport and Deliveries

o Potential Secondary Logistics Hub in POM, Rabaul & Mount-Hagen  Note: The related services will only be operational during emergencies . Customs facilitation . Shared storage for UN & NGOs . Operations Room . Centralized Information for Transport and Deliveries

o Identification of potential additional staging areas

o Transport . Centralized & Updated Information . Sectoral management approach for the most challenging sectors  Quarterly meeting of Air transport companies operating on the national market 34 | P a g e

 Quarterly meeting with the Sea & Land transport departments  Quarterly meeting with the Airports and Ports Corporations

o Coordination & Preparedness: . Set up of a Logistics Coordination Group  Recruitment of an International Logistician for one year  Work Plan on minimal logistics preparedness measures . There should be an Operational Agreement with the Government of PNG on the shared use of Public Systems and Logistics facilities –  This concerns the access to governmental services (clearing, storage and transport capacities), including the ones from PNGDF, in the 2 main ports of entry (Lae Sea Port and POM airport) as well as in Rabaul and Mount-Hagen. . For severe scenario preparedness like drought, it is critical organizing:  Coordination meeting of the all concerned air companies (including ADF and PNGDF), accessing the villages, to reach agreement on geographical approaches of their delivery points and having a complete map of the organization of the deliveries.  Coordination meeting with churches HQs as they are potentially key in participating to distributions. o This should be organized: . First at National level . Then at Provincial level . Finally at District level

o Security . Insecurity is a major and growing challenge in PNG. UN agencies use privately contracted security escorts to move to certain areas. . During important emergencies like droughts, critical land deliveries will have to be made by using escorted commercial trucks.

o IM: . Website . Update LCA . Mapping

b. Existing Operational Corridors in PNG

Main entry points: o Sea: Lae Sea port o Air: Port-Moresby’s Jacksons International Airport

Secondary entry points: o Sea ports: . Port-Moresby . Rabaul . Kimbe . Madang 35 | P a g e

o Airports: . Lae (back up of POM, runway to be extended in 2013) . Rabaul – Kokopo (runway to be extended in 2012) . In the future, Komo airport (LNG project) will be able hosting Antonov (300T) size aircrafts.

Existing Corridors:

Sea transport routes:

. To Provincial Ports  Lae, HUB  Port Moresby  Aitape,  Alotau,  Buka,  Daru,  Kavieng,  Kieta  Kimbe,  Lorengau, 36 | P a g e

 Madang  Oro Bay,  Rabaul  Samarai,  Vanimo,  Wiewak

Air transport routes:

Air Niugini Routes Map : http://www.airniugini.com.pg/flight-information/interactive-route-map/

. To Provincial Airports  Port Moresby - Jacksons International Airport HUB  Alotau - Gurney Airport  Buka - Buka Airport  Goroka - Goroka Airport  Kimbe/Hoskins - Hoskins Airport  Kavieng - Kavieng Airport  Kundiawa - Chimbu Airport  Lae - Lae Nadzab Airport 37 | P a g e

 Lihir Island - Kunaye Airport  Madang - Madang Airport  Los Negros Island - Momote Airport  Mendi - Mendi Airport  Mount Hagen - Mount Hagen Airport  Popondetta - Girua Airport  Rabaul - Tokua Airport  Tabubil - Tabubil Airport  Tari - Tari Airport  Vanimo - Vanimo Airport  Wewak - Wewak International Airport

Surface transport routes:

. The Okuk Highway (formerly Highlands Highway)  Runs from Lae through to Goroka, Mt Hagen and Madang . Hiritano Highway  Runs from Port Moresby to Kerema . Magi Highway  Runs from Port Moresby to Aroma coast

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Logistics Hubs:

Main Logistics Hub o Lae

Secondary Logistics Hubs o Port-Moresby o Rabaul / Kokopo o Mount-Hagen

Coverage Areas

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(map) Province Capital Depend from Hub Area (km²) Population 1 Central Port Moresby Port Moresby 29,500 183,153 7 Gulf Kerema Port Moresby 34,500 105,050 10 Milne Bay Alotau Lae 14,000 209,054 13 Oro (Northern) Popondetta Lae 22,800 132,714 16 Western (Fly) Daru Port Moresby 99,300 152,067 20 National Capital District Port Moresby Port Moresby 240 252,469 2 Simbu (Chimbu) Kundiawa Mount Hagen 6,100 258,776 3 Eastern Highlands Goroka Mount Hagen 11,200 429,480 6 Enga Wabag Mount Hagen 12,800 289,299 15 Southern Highlands Mendi Mount Hagen 23,800 544,352 17 Western Highlands Mount Hagen Mount Hagen 8,500 439,085 5 East Sepik Wewak Lae 42,800 341,583 8 Madang Madang Lae 29,000 362,085 11 Morobe Lae Lae 34,500 536,917 19 Sandaun (West Sepik) Vanimo Lae 36,300 185,790 4 East New Britain Kokopo Rabaul / Kokopo 15,500 220,035 9 Manus Lorengau Rabaul / Kokopo 2,100 43,589 12 New Ireland Kavieng Rabaul / Kokopo 9,600 118,148 14 Autonomous Region of Arawa Rabaul / Kokopo 9,300 175,053 Bougainville 18 West New Britain Kimbe Rabaul / Kokopo 21,000 184,838

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c. Storage:

Current situation: o Individual agencies have their own storage in containers o AusAID is using a PNGDF facility in Lae o PNGDF facilities exist in Lae, POM and Madang

Proposed long term solution o Establish a shared / secured warehouse in Lae Main Hub

During emergencies o Establish MSUs in Intermediate Hubs o Establish MSUs in Staging Areas closer to the operations (in Provincial capital) with direct access to port / airport o If needed, establish staging areas in FDPs using local facilities

d. Deliveries:  This chapter needs to be completed through meetings with sea, air and land transport companies, including public (PNGDF, ADF) and private sectors.  Deliveries to the FDPs: o By Air: . Districts o By sea: . Districts o By Road: . Districts

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