INFRASTRUCTURE ECONOMIC & TRANSPORT UPDATE PORTS & SHIPPING
A ports revolution The company appointed to manage ports at Motukea and Lae is aiming high. By David James International Container Terminal Services (ICTSI) has been awarded 25-year concessions to manage new facilities on Motukea Island, and in the Lae Tidal Basin. Ted Muttiah, Director, Asia Pacific, for ICTSI South Pacific, says the company will operate the international arm of each of these terminals. ‘So all international container and general purpose vessels cargo into and out of Motukea and Lae respectively will go through ICTSI South Pacific terminals: South Pacific International Container Terminals (SPICT) and Motukea International Terminals (MIT) respectively,’ he says. Muttiah says ICTSI is located in 18 countries and operates 30 terminals. He believes the company’s ‘DNA’ is suited to operating in countries like PNG. ‘We do exceptionally well in the emerging markets— difficult terrain that perhaps most of the other established players are reluctant to go into.’ Muttiah acknowledges that there are some challenges. ‘We have to relocate some of the crane equipment—mobile harbour cranes from some of the existing facilities to the new facilities.’
Ship to shore Muttiah says he is looking for a significant jump in efficiency. ‘Today, vessel crane productivity in PNG is
achieving about 10 to 12 moves per hour, per crane. The global standard is about 34 moves per hour, per crane. ICTSI also has achieved those numbers. ‘So the aim is to lift quayside productivity as a key element to improving operational costs within the supply chain for port users. ‘I would certainly acknowledge the work that has been done by existing stevedores in serving the port’s needs of the day: bringing the port operations to a certain level where it is sufficient to go out to market. The challenge now is to take port efficiency to the next level. ‘We’re not necessarily in competition with existing players because the environment that they operated in would be different to the environment we are going to operate in. ‘For example, they have been using ships’ gear. We intend to bring ship-to-shore cranes, which is the Rolls Royce of stevedoring.’
Expectations Muttiah says his first requirement is to start up the operations and then consolidate them. ‘Expectations are high. We need to have a consistent operation, predictable and sustainable. So that shipping lines, as our customers, know that when their ships come in they can come straight on the dock and have a predictable turnaround time.’ Muttiah says he will aim at continuous improvement. The increased scale will lead to higher productivity, and afford the ability to handle more ships because
42 BUSINESS ADVANTAGE PAPUA NEW GUINEA