NEW PORT IN GULF PROV­INCE TO BE BUILT BY JOINT VEN­TURE

Business Advantage Papua New Guinea - - Infrastructure & Transport -

The Gulf Provin­cal gov­ern­ment has set up a 50/50 part­ner­ship with the United States-based cargo trans­porta­tion com­pany, Teras Amer­ica LLC, to build a port to ser­vice Pa­pua New Guinea’s sec­ond LNG project and other in­dus­tries. De­tails of the port project, in­clud­ing its lo­ca­tion, have yet to be determined, ac­cord­ing to the PNG Re­gional Manager for Teras Amer­ica sub­sidiary PNG Project Ser­vices Ltd, Amanda Sprang. Sprang told Busi­ness Ad­van­tage that her com­pany will be pro­vid­ing ‘all the fi­nance and will be the op­er­at­ing part­ner’. ‘We be­lieve that for [the] long-term part­ner­ships we are par­tic­i­pat­ing in, this is the way to pro­ceed.’ Sprang said it makes sense to build a port in the Gulf Prov­ince, rather than Lae. It would mean not hav­ing to trans­port goods over the PNG High­lands’ two moun­tain ranges to reach project sites.

Re­la­tion­ship with LNG projects Gulf Prov­ince Gover­nor Hav­ila Kavo said he ex­pects the To­tal Sa–in­teroil Gulf LNG Project, which is in its plan­ning stages, to use the new port. The Gover­nor has put To­tal SA and In­teroil on no­tice that he in­tends a joint ven­ture be­tween the Gulf Pro­vin­cial Gov­ern­ment and Teras Amer­ica, Gulf Teras Ser­vices Ltd, to man­age all cargo trans­port for the LNG Project to the Gulf. The in­ten­tion of Gulf Teras Ser­vices Ltd is to bring a mod­ern fleet and best prac­tices to the marine op­er­a­tions in the Gulf Prov­ince, he said. Ad­di­tion­ally, such con­sol­i­da­tion of car­goes will save the To­tal–in­teroil Gulf LNG Project cost and time and will ben­e­fit both the de­vel­oper and the Na­tional Gov­ern­ment of PNG.

Open­ing up trade In ad­di­tion to bring­ing ben­e­fit to the Gulf LNG Project, the port would open up trade and agri­cul­tural ex­ports, Sprang said, and bring down busi­ness costs through­out PNG. ‘This is a new con­cept be­cause we are not look­ing for fund­ing from the Na­tional Gov­ern­ment,’ she said. ‘We will be sourc­ing and pro­vid­ing fi­nanc­ing.’ She said it was not pos­si­ble to say how much the port would cost un­til af­ter a fea­si­bil­ity study was car­ried out, but said the port would be built within four years.

Port work­ers at Ravuvu

Gulf prov­ince Gover­nor Hav­ila Kavo

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