The transport subsidy of fresh produce will continue with the signing of a memorandum of understanding with Bismark Maritime Ltd.
Deputy Prime Minister and Minister for Commerce and Industry, Sam Basil, signed the deal with Bismark’s managing director, Hamish Sharp, in Lae on Tuesday.
The fresh produce transport freight subsidy scheme was initiated by the Department of National Planning and Monitoring when Basil was Minister for National Planning. It was an intervention to ensure food security and nutrition during the early onslaught of COVID-19.
Following an expression of interest by Bismark Maritime Ltd, a memorandum of understanding was signed on Tuesday between the State and Bismark to continue with the transport freight subsidy scheme.
This third phase of the subsidy, which is a 50/50 arrangement, now includes Oro Bay for Northern Province and Alotau for Milne Bay Province. Both are natural ports to stop at en route from Lae to Port Moresby and back.
Speaking at Bismark Maritime’s Lae office, Basil said this scheme will continue to put cash in the pockets of many players along the supply chain.
“We believe in supporting and continuing to support our small growers, especially up in the highlands, to continue supplying their fresh vegetables that will reach Moresby and it will be made affordable – at an affordable price – so that we continue to feed the masses in Port Moresby.”
The first announcement was made on the 27th of April, 2020, with the signing of a K3 million agreement. The government sponsored 100 percent for the first lag, where 634 dry containers and 296 refrigerated containers were shipped.
In August 2020, the contract was renewed with an additional K3 million, but this time in a 75/25 arrangement, where shippers met 25 percent of the freight cost.
Basil said for the second phase, 1,302 containers were shipped.
For the third phase, shippers in Lae will meet 50 percent of the cost while shippers at Oro Bay and Alotau will meet 25 percent of the cost.
“Oro Bay and Alotau are new ports that we want to encourage the people of Milne Bay and people of Popondetta, or Oro Province, to participate in this scheme as well,” Basil clarified.
(The signing of the fresh produce transport freight subsidy scheme MoU was between the State and Bismark Maritime Ltd)
