NEW PORT IN GULF PROVINCE TO BE BUILT BY JOINT VENTURE
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.