And the city is booming

Samisoni Pareti
Lae is booming and its port tells the whole story.

The country’s largest port, bigger than the national capital’s, is now spotting a smarter and larger look, thanks to a K25.11 million upgrading plan.

Upgrading work has seen the restoration of berthing one, extension of berthing 3 (through Japanese aid) and upgrading of berthing for tankers, which means Lae port can now handle larger tankers.

Its container park has also been enlarged, paved and fenced, and a stand-by generator installed to ensure that work is not stopped should there be a power cut.

Space has also been provided for Ramu Sugar, one of PNG’s largest agro-business companies, to build storage tanks for its palm oil.

The tanks when completed would hold 200,000 litres. Yet this is still not enough.

Container ships are still queuing up to dock, spending up to two days anchored out at sea before it could berth.

The problem, according to the Lae Chamber of Commerce, is not so much the lack of expansion at Lae port.

There is congestion also due to the growing importance of Lae as a port of entry for both imports and exports, as well as the thriving mineral and manufacturing industries in and around this northern coastal city.

“Up to 60% of the country’s imports and exports go through Lae,” says Alan McClay, president of Lae Chamber.

“All of the Highlands coffee and other coffee in Morobe province go through here. Most of the minerals are shipped from here, as well as cocoa, copra, sugar and very soon palm oil.”

The opening up of the Highlands towns of Goroka and Mt Hagen through a sealed highway from Lae no doubt is a contributing factor to its growth.

Sealed highways also link Lae to Madang and Wewak further north and to growth centres further down the southern coast.

“The high fuel cost is also fuelling growth at Lae port,” adds McClay.

“Ships are bypassing other ports along the northern coast, preferring to drop off or load their cargoes here in Lae.

“These cargoes are then taken to their final destination by road.”

Congestion is estimated to cost a ship owner US$20,000 a day. Because of this, PNG Ports—owners of Lae port—will soon undergo a massive US$110 million expansion project that will add another 700 metres to berthing space. That’s a 50% expansion.

The work is being funded by the Asian Development Bank which will see the relocation of people living at the project site.

Currently a swamp, part of the work will involve draining it before dredging of Lae Harbour starts.

“This expansion will definitely ease congestion somewhat,” explains Tony Willie, general manager of Lae port.

“Turnaround of container ships will also be faster as we intend to install onshore cranes. Rail tracks for these cranes have already been built.”

Willie believes the modernisation of Lae port is only enhancing its image as the country’s biggest and fastest growing port.

Being the industrial and manufacturing capital of PNG, having a bigger and efficient port is crucial.

Lae is home to corporate giants like Nestle PNG, Orica PNG, Trukai Industries and, of course, Ramu Sugar.

The opening of the new Harmony Gold at the nearby Hidden Valley can only mean the way to go for Lae and its port would be growth and more growth.