LCA – Papua New Guinea 2011 ogistics Capacity Assessment Papua New Guinea Country Name Papua New Guinea Official Name The Independent State of Papua New Guinea Assessment Assessment Dates: From 1st February 2011 To 31st March 2011 Name of Assessor Daniel Adriaens Title Logistics Advisor Email Contact [email protected] Page 1 of 141 LCA – Papua New Guinea 2011 Table of Contents 1. COUNTRY PROFILE 3 1.1. OVERVIEW 3 1.2. INTRODUCTION & BACKGROUND 4 1.3. HUMANITARIAN BACKGROUND 7 1.4. NATIONAL REGULATORY DEPARTMENTS 20 1.5. CUSTOMS INFORMATION 24 2. LOGISTICS INFRASTRUCTURE 34 2.1. PORT ASSESSMENT 34 2.2. AIRPORT ASSESSMENT 54 2.3. ROAD ASSESSMENT 70 2.4. RAILWAY ASSESSMENT 78 2.5. WATERWAYS ASSESSMENT 79 2.6. STORAGE ASSESSMENT 82 2.7. MILLING ASSESSMENT 84 3. LOGISTICS SERVICES 89 3.1. FUEL 89 3.2. TRANSPORTERS 94 3.3. VEHICLE RENTAL 101 3.4. TAXI COMPANIES 101 3.5. FREIGHT FORWARDING AGENTS 102 3.6. HANDLING EQUIPMENT 103 3.7. ELECTRICITY & POWER 104 3.8. MANUAL LABOUR COSTS 109 3.9. TELECOMMUNICATIONS 110 3.10. LOCAL SUPPLIES MARKET 116 3.11. ACCOMMODATION 118 4. SCENARIOS & CONTINGENCIES 120 4.1. REFUGEES AND IDPS 122 4.2. FOOD SECURITY 122 4.3. NATURAL DISASTERS 123 4.4. OTHER ERROR! BOOKMARK NOT DEFINED. 5. ANNEXES 125 5.1. ANNEX 1: LIST OF CONTACTS 125 5.2. ANNEX 2: WEBSITES IN THIS LCA 135 5.3. ANNEX 3: MAPS 136 Page 2 of 141 LCA – Papua New Guinea 2011 1. Country Profile 1.1. Overview Papua New Guinea is rich in gold, oil, gas, copper, silver, timber and is home to abundant fisheries. Although it has a population of only 6.3 million, its people are strikingly diverse, organized in small, fragmented social groups and speak over 800 distinct languages. The economy is highly dualistic consisting of an enclave based formal sector that focuses mainly on large-scale export of natural resources, and an informal sector dominated by the subsistence and semi- subsistence activities of the majority rural population. 1.1.1. The Geography The country is located in the South West Pacific between latitudes of 1° and 12° south and at 463,000 km², is the largest of the Pacific island states. It occupies the eastern half of the mainland Island of New Guinea with three additional Islands (New Britain, New Ireland and Bougainville) and over 600 lesser islets and atolls to the North and East. The main islands are volcanic in origin with rugged interiors up to an elevation of 4,496 meters. The country has a national capital district and 19 provinces (8 coastal, 5 highland, and 6 island) administered by provincial governments. While the provincial governments have relative autonomy in their affairs, devolved functions often go unattended primarily because of provincial (human and financial) resource constraints. This results in the Central Government maintaining a strong presence. In the past, the Government created special ―authorities‖ to try to address particular issues and to overcome perceived shortcomings in central and provincial bureaucracies. It now appears that these authorities are also being sidelined as key resources are transferred to more single-focus areas of activity via other channels. 1.1.2. A Disaster Prone Country Over 80% of the population live in a rural environment and have traditionally been particularly susceptible to extremes of climate (rains and drought) related to the El Niño Southern Oscillation (ENSO). Evidence points to significant potential for increasing variability related to climate change, resulting in more frequent or more extreme weather-related events in some parts of the country. PNG is particularly prone to natural disasters including earthquakes, volcanic eruptions, tsunamis, cyclones, river and coastal flooding, landslides, and droughts. The highlands, with 2.2 million people in many thousands of small villages, are subject to weather extremes of heavy rainfall and drought. Increasingly, landslides are occurring from population pressures on uncontrolled land use. The coastal areas and the many coral atolls are low-lying and nearly 500,000 people in 2,000 coastal villages are vulnerable to weather extremes and inundation. PNG experiences 2 to 3 national-level activations (and numerous smaller local activations) for disaster events per year, and in the past 15 years there have been 7 events of significance covering flooding, volcanic eruption, tsunami, landslide, and drought. The DRR planning is promoted through the National Disaster Center (NDC) within the Department of Provincial and Local Government Affairs; however, there appears to be little ongoing activity at this time. 1.1.3. The Economy PNG‘s economy is weathering the impact of the global economic crisis well, with a robust pace of economic growth. In 2009 the economy slowed modestly to 3.9 percent, compared with the growth of 6-7 percent in 2007-08; this continues the longest uninterrupted period of economic growth since PNG‘s independence in 1975. The growth remains broad- based, extending beyond the extractive industry to other sectors including construction and telecommunications. Although formal sector employment is modest, solid formal employment growth has also continued, with the conditions in the skilled segment of the labor market very tight. There have been important developments in key areas of structural reform in recent years; in particular, opening markets in telecommunications and air transport has produced major welfare gains for the population. To diversify the economy and increase employment, attention is needed to challenges such as maintaining law and order, improving the business climate, commercializing state-owned enterprises, reducing the regulatory and licensing burden, and equitably accessing resources (including land) for development. Developing infrastructure – electricity, telecommunications, road and other transport – continues to be a critical precondition for accelerated private sector-led growth. 1.1.4. The Challenges Poverty remains a growing concern; although data are unreliable and outdated, estimates are that around 40 percent of Papuan New Guineans live on less than US$1 per day. In rural areas, poverty means lack of access to basic services, and a dependence on subsistence agriculture that is often reduced by difficult terrain and vulnerability to pests and climatic events. In urban areas, poverty of opportunity means that livelihoods often do not provide adequate income for consumption, much less basic education and health costs. Transport networks are in poor condition, with about 85% of main roads and nearly all feeder roads impassable or abandoned during some time of the year. It is estimated that 17% of the population has no access to any road and 35% of the population lives more than 10 km from a national road. Shipping and air transport services to isolated communities are in decline and wharves and airstrips are falling in disrepair. Page 3 of 141 LCA – Papua New Guinea 2011 Only seven percent of the population has access to electricity with wide variations across regions. Nearly two-fifths of health/sub-health centers and an even greater proportion of rural health posts have no electricity to power or essential medical equipment. In the small number of schools with access to electricity, energy costs account for up to 70% of their budget. Life expectancy is very low (56 years), infant and maternal mortality rates extremely high, and immunization rates are inadequate. The HIV/AIDS epidemic is alarming, and without effective inventions, the number of infections could swell to over 10 percent of adults by 2025. Gender inequality is a significant development challenge in PNG. Women have substantially poorer access to health care services and lower levels of educational attainment and literacy pose barriers to their equal participation in economic activity and political life. Most women lack access to credit, banking and markets. Gender-based violence is reportedly very high. Nearly half of PNG‘s population is under the age of 20 and the number of young people is expected to double in the next 20 years. Youth unemployment is on the rise, with only one in ten school graduates finding jobs in the private sector. With many young people leaving their villages in search of jobs in the towns and cities, few job opportunities has lead to the expansion of urban youth gangs, known as raskol gangs who often turn to crime. Source : World Bank & ADB 1.2. Introduction & Background 1.2.1 Basic Facts Basic Facts Capital Port Moresby The official languages are English, Pidgin (Tok Pisin) and Motu. Approximately 860 indigenous languages are spoken (over one-tenth of the world's total) and each language Wikipedia/The World Language group has a distinct culture. Fact Book Pidgin, a creole language, is widely used and understood; English is spoken by 1% - 2%; Hiri Motu is spoken by less than 2% Melanesian, Papuan, Negrito, Micronesian, Polynesian. Ethnic Groups There are large socio-cultural differences between and The World Fact Book within provinces. PNG's constitution declares that PNG is a Christian country. About 27% are Catholics, 19% Evangelical Lutheran, 11.5% belong to the United Church and the remaining The World Fact Book - Religions Christians follow the Evangelical Alliance, Seventh-Day 2000 census Adventist, Pentecostal, Baptist and Anglican churches. UK FCO Country Profile Declared Buddhists, Muslims and Hindus each number in the hundreds. Indigenous beliefs and other 3.3% One border with Indonesia – 820 km, to the west Australia to the south The World Fact Book Border countries Solomon Islands to the east UK FCO Country Profile US territory of Guam to the north. US$5.976 billion (2010 est.) country comparison to the world: 104 The world Fact Book Australia 30%, Japan 7.5%, China 5.5%, Germany UK FCO Country Profile 3.5% (2009) Nations Online Country Exports Mineral deposits, including copper, gold, and oil, Profile account for nearly two-thirds of export earnings.