A decision on who will build a second K300 million berth at the Port of Lae is expected by the end of 2015 and construction due to commence in 2016, according to PNG Ports’ Chief Executive Officer, Stanley Alphonse. A new industrial park and an international operator for the port is also on the cards.

The construction of a second berth follows the completion of Phase One of the port’s development last December, at a cost of K700 million, which included a tidal basin, a multipurpose berth, and terminal works including buildings, storage areas, roads, drainage, water, electricity and sewerage services.

‘Operationally, a second berth of at least 240 metres LOA [length overall] is required for the terminal to be operated as efficiently as possible by an internationally experienced terminal operator,’ Alphonse has told Business Advantage PNG.

‘This will enable two vessels of anything up to 200 metres LOA to berth at the same time.

‘The second berth is expected to be built adjacent to the recently built container terminal. It will add a further 240 metre quay line capacity to what has already been delivered.’

Timeline

PNG Ports Authority’s CEO, Stanley Alphonse.

Expressions of interest in building the terminal close in mid-September, he said.

‘We are seeking interest from terminal operators to run either or both the Lae Port and the Motukea terminal, when the Port of Port Moresby terminal is relocated.’

The final decision on the successful bidder is expected to be announced towards the latter part of 2015.

The cost is not established as yet, but any decision will not be driven by price alone, but other qualitative factors, according to Alphonse.

‘Our intention is for the Lae Tidal Basin Phase Two to commence as soon as the procurement process for the contractor is completed by the end of 2015.

‘Funding is expected to be sourced internally,’ he added.

Although Phase One of the Lae Port development is complete, only coastal shipping has been allowed to use the terminal until the appointment of an international operator, he said.

Huon Park

A key part of the Lae Port development is Huon Industrial Park, which will store wet (general fuels and chemicals) cargo, dry bulk materials, feed stocks and be the base for a mineral export facility.

Alphonse says he expects to call for expressions of interest to construct Stage One of the park soon. The cost is estimated to be K258 million.

‘Planning is ongoing and designed and a priced construction report has been completed,’ Alphonse told the 2015 PNG Advantage Investment Summit in Brisbane last month.

‘PNG Ports has held some discussions with potential industrial tenants from mining, petroleum, power and fisheries, which we expect to fully commercialise in due course. Long-term concessions are currently being negotiated.

‘Timing wise, implementation should take place over the next five-year period, with the first development commencing in 2016,’ says Alphonse.