Investments in equipment and processes at the Lae and Motukea international container terminals have delivered results. Robert Maxwell, CEO of ICTSI South Pacific, tells Business Advantage PNG about the changes.

South Pacific International Container Terminal in Lae. Credit: ICTSI South Pacific.

ICTSI South Pacific, operator of Papua New Guinea’s two international ports, has long been a barometer for the wider economy as the number of exports rise and fall. But internally, it judges its own performance by how quickly it can unload and turn around the ships in port.

The company recently invested K100 million in equipment and generators at its Motukea International Terminal, near Port Moresby, and its South Pacific International Container Terminal, in Lae, and is already seeing a “tangible benefit,” according to Robert Maxwell, Chief Executive Officer, ICTSI South Pacific.

“Today, consignees can begin releasing their cargo even while the vessel is still alongside, streamlining the process.”

“When we deployed our ship-to-shore gantry cranes at the beginning of 2023, we really improved productivity, which in this industry is measured by the number of containers you can lift on and off of the ship in one hour,” Maxwell tells Business Advantage PNG.

“On the big ships, we’re now hitting 40 container moves per hour. Previously with just using ship’s cranes, the figure was about seven. This is a six-fold improvement in productivity.”

Maxwell points out that a shorter port stay for a vessel positively affects the whole supply chain by making trips more efficient.

“The shorter supply chain means the importers now have less working capital and forex tied up bringing cargo from, let’s say, China to Goroka,” says Maxwell.

“Instead of four weeks, it now takes three weeks. So, there’s a 20-25 per cent reduction in the working capital commitments on the balance sheet.”

Streamlined customs processes

In addition to improvements in moving cargo, ICTSI has also seen advances in customs clearance.

“What we’ve successfully done with the PNG customs service over the past two years is establish real time Electronic Data Interchange (EDI) with the customs system,” says Maxwell.

“And the rules have changed: previously, an agent could not file a customs entry until the vessel was alongside [the port]. That’s 50 years old, that rule,” he continues.

“Now the agent can start the filing process when the ship leaves the port of load. And this means that a considerable amount of cargo has already been customs cleared before the vessel arrives.

“Today, consignees can begin releasing their cargo even while the vessel is still alongside, streamlining the process. In the past, importers had to wait until the vessel had departed before collecting their containers.”

Increased cargo visibility

As a result of these changes, containers are leaving the ship faster and being cleared by customs quicker. Meanwhile, the upcoming ICTSI app, which is slated for release this year, aims to speed up the final piece in the transport puzzle.

PNG crane operators in Mindanao Credit. ICTSI South Pacific

“The ICTSI app will provide unprecedented cargo visibility with Track & Trace feature for vessel, containers, and trucks moving in and out of the terminal,” says Maxwell.

“Besides the ICTSI app, ICTSI South Pacific also has plans to roll out a truck appointment system in the next few years.

“There are periods with trucks queuing, and days when there are zero trucks. With the truck appointment system – which has been proven internationally – those peaks can be smoothed out so we avoid the queue. The trucker avoids the queue and can then perform more trips per day.”

Some of the investment also went into two 2.5 megavolt amp generators to help cope with PNG’s unreliable power supply and the whole thing is making for a more streamlined approach to ports usage.

“Because we have the reliability with the cranes, we are seeing gearless vessels, that do not have cranes on board,” Maxwell says.

“The quay cranes can work unhampered and work faster. That ship is bigger and cheaper because the ship enjoys economy of scale.”