Mapai Transport

MAPAI TRANSPORT

LIFE ON THE HIGHLANDS HIGHWAY Behind a leading Papua New Guinea-based freight and transport solutions provider; we discuss operations and ‘the Spirit to Serve’ with Managing Director of Mapai Transport, Jacob Luke Writer: Phoebe Harper | Project Manager: Eddie Clinton

W

ith a geologically unstable mainland and a famously unreliable infrastructure of paved roads, transport in Papua New Guinea (PNG) is not a simple affair.

And knowing this too well, is Jacob Luke, Manging Director of PNG-based Mapai Transport; a leader in logistical and transport solutions across the country and beyond.

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“PNG is a relatively small country in terms of population with less than eight million people, despite it being geographically large due to its islands and expansive seas.

“This means that people in business are connected more closely than those in larger economies. This intimacy creates a desire to “do well” for people and the communities

– a sense of “I’ve got you covered” is evident. The service industry is therefore competitive, and reasonably efficient under difficult conditions,” Luke describes.

Originating with just a single vehicle in 1990, today, Mapai Transport’s operations and accompanying fleet has ballooned significantly to include three bases spread across

SUPPLY CHAIN

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MAPAI TRANSPORT PNG, with a depot based in Goroka, and two further depots both with fully-equipped workshops in both Lae and Mt. Hagen. At present, Mapai’s transport division comprises approximately 200 employees.

As a conglomerate, three separate companies are unified under the Mapai banner.

“The Mapai Group operates three divisions – Mapai Transport, Mapai Logistics and Mapai Properties,” Luke explains.

AT A GLANCE: THE MAPAI TRANSPORT FLEET The company’s fleet comprises in excess of: • 100 prime movers on the “highway” with 170 trailers • 20 “town” delivery trucks (spread between Lae, Goroka and Mt Hagen) • 20ft/40ft sidelifters with a number of top lifter and reach stacker forklifts • Over 1,850 containers (with more on order)

The trio of companies intersect in a complimentary manner, with the Mapai Properties division owning the land on which the transport division operates its workshops and the residential units used to house employees, alongside the remote Mt. Hagen depot. With roughly 40 staff, the property division crucially also manages the security force deployed to oversee and secure the company’s many assets and people.

At present, the Mapai Logisitics division continues to be engaged in two major resource projects at both the Porgera Gold Mine and the Ramu Nickle Mine, both of which are uniquely challenging.

“In 2018, Mapai Transport assisted the landowners of the Ramu Nickle Mine to acquire finance to purchase 10 trucks to ensure they were able to participate in the wealth their traditional land was generating.

These trucks (and the company subsequently registered to run the operation) continue to operate today,” Luke explain.

Situated in the remote domain of the Enga Province, along a notoriously difficult and occasionally dangerous route, the Porgera Gold Mine represents a challenging logistical requirement that Mapai Transport continue to fulfil.

Niugini Oil Company Niugini Oil Company is a PNG based company and has been a supplier of quality fuels and lubricants in PNG for 32 years.

Niugini Oil Company owns and operates modern petroleum storage facilities in Lae and Mt Hagen, along with its own fuel distribution facility in Port Moresby and is well placed to service various customers in Lae, Mt Hagen, Port Moresby and across Papua New Guinea.

Niugini Oil Company has the capacity and flexibility to serve its current customer base and any additional business that may choose us as a fuel or lubricants supplier.

Niugini Oil Company markets its own lubricants range under the Daxin Lubes brand and we are also the PNG distributor for Gulf Western Oil out of Australia.

Niugini Oil Company has been a supplier of diesel fuel and lubricants to Mapai Transport Company for many years. This business partnership has been a testimony of the trust and service given by both parties to each other.

Going forward, Niugini Oil Company will continue to give our best service for the good and growth of Mapai Transport Company.

niuginioil@nuioil.com

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“Suppliers of quality fuels and lubricants” FOR: Mining – Agriculture – Power Generation – Commercial Transport Passenger Cars – PMV’s – Earthmoving Equipment – Construction

DISTRIBUTORS FOR…

HEAD OFFICE – LAE PH: 472 5033 / 5660 PH: 7031 6604 / 7031 9827 FAX: 472 3268

MT HAGEN PH: 545 1283 / 1663 PH: 7031 3555 / 7031 3556 FAX: 545 1437

Email enquiries to: niuginioil@niuoil.com

PORT MORESBY PH: 321 5175 PH: 7031 9827 / 7031 9828 FAX: 323 6891

MAPAI TRANSPORT “Mapai Logistics holds Cyanide Certification allowing us to transport these dangerous goods, along with fuel, mining equipment, food and construction needs such as (thousands of tonnes) of cement.

“Close relationships have been forged with Swire Shipping to facilitate the supply chains for these mines,” he comments.

At the backbone of operations for the entire company is the support of an administration team of 30 people, encompassing accounts, human resources and IT. The company’s growth is born from Luke’s prevailing desire to become the preferred transport operator on the Highlands Highway.

Suited to the somewhat “arduous conditions” of the PNG road network, Mapai Transport’s fleet primarily consists of approximately 100 Kenilworth trucks, each of which have been adapted to operate in a harsh environment, undertaking the route from the coastal city of Lae into the remote and mountainous Highland Provinces.

“The conditions are challenging for several reasons but specifically road conditions that are affected by climate (extreme wet seasons and earthquakes), conditions (steep,

curving mountain climbs) and uncontrolled, unregulated weights carried by “rogue” operators,” Luke explains.

Adding to the particularly challenging context of operating within this environment, Luke also highlights how Mapai Transport’s trucks and drivers may also be subjected to opportunistic criminal activity.

The fleet is supported by a workshop team of approximately 120 highly skilled staff.

“The trucks are rebuilt from wrecks, gearboxes and transmissions are rebuilt from scratch and all vehicles and trailers are “trip checked” after every journey. The workshop also runs the only heavy-duty recovery trucks in the country,” he outlines.

CORE PARTNERSHIPS

Mapai Transport caters to an impressive and extensive roster of clients, including Coco-Cola EuroPacific Partners, Nestle and the Heineken brewery, amongst a host of local companies.

As such, a robust supply chain network is critical to the success of the company in delivering its transport solutions.

“Supply chain operations, whilst not as mature as those in more developed countries, are integral to 6 | APAC Outlook issue 51

the business,” Luke states. Operating in a “country of islands”, shipping services are an essential component to the supply chain link for both businesses and communities.

“Prior to the Porgera Gold Mine closing for a short period, a good example of this was our relationship with Swire Shipping and CEVA Logistics offering the Porgera Gold Mine a logistics service that facilitated the consolidation, shipping, and transport of goods from international supply points to the mine in the remote Highlands of PNG. “We are confident that this will resume upon the recommencement of mining operations,” Luke affirms.

“MAPAI WORKS CLOSELY WITH BOTH LOCAL AND INTERNATIONAL SHIPPING LINES, AND OUR PARTNERS, TO DELIVER SEAMLESS SUPPLY CHAIN OPERATIONS” - JACOB LUKE, MANAGING DIRECTOR, MAPAI TRANSPORT

MAPAI TRANSPORT A CONSCIOUS COMPANY

What distinguishes Mapai Transport’s operations is the respect for the PNG culture and the communities in which it serves.

Crucially, this extends to the people that the company employs.

FROM RAGS TO RICHES Something of a renowned entrepreneur within PNG, Jacob Luke’s story is an inspiring one, defined by patience and persistence in the face of adversity.

Having been expelled from school early for protesting the enforced localisation of teachers, Luke undertook work as a car sales assistant and cargo boy in the Western Highlands, alongside other menial work. All the while, a young Luke envisioned a future in the trucking and cargo haulage business.

In 1990, Luke acquired his first two twin steer trucks and from this modest beginning he grew and expanded this business to become today the biggest trucking, cargo haulage, logistics and customs business in Papua New Guinea with a logistics division in Brisbane. Despite being a highly competitive industry that is heavily capital intensive, Mapai Transport continues to effectively compete against large internationally backed companies such as the Steamships Trading Company.

In a notoriously challenging business environment where so many entrepreneurs fail, thanks to tenacity, Jacob Luke succeeded.

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Indeed, Luke defines the primary quality attributing to Mapai’s ongoing success within the transport sector as “the people’s belief in the company’s theme – the Spirit to Serve.”

In an underdeveloped country, talent retention in an industry where there can be a prevailing shortage of skilled staff is crucial. As such, Mapai Transport endeavour to support the growth and development of employees, through extensive training and by providing attractive opportunities as an overseas employer to expand knowledge in a new environment.

“This work culture is demonstrated by an inclusive work environment underpinned by an accessible management team and a strong Board of Directors,” Luke states.

“Corporate decisions are not always driven by profit,” he explains. “Instead, decisions are often influenced by the effects on local communities.

Sustainability, growth, value-adding, and all the traditional corporate considerations are, without doubt, always hovering. Despite this, if our actions produce a positive outcome in peoples’ lives, we will seek to be involved.”

The company’s ongoing project – the Mapai Charitable Foundation – perfectly embodies this commitment, as a social initiative that is currently engaged with constructing a primary school for the people surrounding the company. Soon to be renamed ‘The Jacob Luke Foundation’ to preserve the founder’s legacy, amongst other things the school will provide crucial employment opportunities, water supply, septic sanitary construction and electricity via standalone generators.

“Future projects include development of health facilities and a place for worship which is important for remote communities,” Luke adds.

The Mapai Group also demonstrate a laudable commitment to improving the plight of the disabled within PNG. This is reflected through significant donations, both in cash and kind, that are exchanged without fanfare.

“A Memorandum of Understanding was recently presented to the Morobe Provincial Government (Morobe being where Mapai’s Corporate Office is situated) which outlined a plan to donate some “inner city” land and develop a rehabilitation centre in exchange for their current property

SUPPLY CHAIN

“CORPORATE DECISIONS ARE NOT ALWAYS DRIVEN BY PROFIT. INSTEAD, THEY ARE OFTEN INFLUENCED BY THE EFFECTS ON LOCAL COMMUNITIES” - JACOB LUKE, MANAGING DIRECTOR, MAPAI TRANSPORT which is poorly positioned (abutting a significant settlement) and has no development, nor is there any plan to develop the site due to disputed ownership and lack of utilities.

“As benefactor, the company seeks no financial gain,” Luke explains.

LOOKING AHEAD

Turning to talk of the year ahead, Mapai Transport will be committed to recovering the losses impacted during the COVID-19 pandemic.

“Our key priority now is to grow the business so that we can bring our workforce back to pre-COVID levels. Like a lot of businesses, Mapai Transport was forced to make severe staff cuts because of the virus (about

20 percent). Our aim is to be able to re-engage those employees,” Luke comments.

Ever reaching for new opportunities, Mapai Transport are also exploring avenues of further diversification to compliment the company’s existing services whilst strengthening integral relationships with suppliers, partners, and customers.

Drawing to a close, Luke returns to the troubles that continue to plague PNG, including a relatively low domestic income, an ageing infrastructure that causes disruption and adds cost to business, alongside unreliable and costly power generation, and the poor

road conditions that result in a “disproportionate cost” to the transport industry.

Nevertheless, in the face of such struggles and as certain as the future of Papua New Guinea itself, Mapai Transport will continue to run their course along the Highlands Highway.

Tel: +675 7092 2000 information@mapaigroup.com www.mapaigroup.com

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MAPAI TRANSPORT Mapai Group Manam Anda Building 4th Street Lae, 411, MOROBE PROVINCE, PAPUA NEW GUINEA Tel: +675 7092 2000 information@mapaigroup.com www.mapaigroup.com

PRODUCED BY APAC OUTLOOK MAGAZINE