The Independent Consumer and Competition Commission (ICCC) has determined the rates for Stevedoring and Handling Services to be regulated by 2024.
The ICCC, following completion of its pricing review into the Stevedoring and Handling Services determined that the rates for the Stevedoring and Handling Services charged for international containerized cargoes at the Motukea Port and Lae Tidal Basin will be regulated for the next 5 years commencing on January 1, 2024.
“As part of this determination, the ICCC has determined that the maximum average prices (MAP) will apply for the stevedoring and handling services provided by the International Container Terminal Services Incorporated (ICTSI) through its subsidiaries, Motukea International Container Terminal Limited (MITL) in Motukea; and South Pacific International Container Terminal Limited (‘SPICTL’) in Lae,” said ICCC Commissioner Paulus Ain.
Based on the outcome of this pricing review, the average prices for MITL and SPICTL will substantially decrease in 2024 by about 46 percent at Motukea port, and 55 percent at the Lae Tidal Basin.
“The ICCC understands that when the Government of Papua New Guinea invested in the new wharves at Lae and Motukea in Port Moresby, Kumul Consolidated Holdings Limited decided to outsource the management of these wharves to an efficient operator.
“The objective was to create a more economically efficient service. It was envisaged that the scale of these operations would mean that ultimately the people would receive a better service at a lower unit cost.
“However, due to the high prices charged by MITL and SPICTL, so far this has not been the case. With the introduction of the price controls determined by this pricing review, prices at Lae and Motukea are likely to be lower than anywhere else in PNG. MITL and SPICTL will still earn a fair return on their investment.”
The ICCC expects that the implementation of the price controls will fulfill the Government’s objective of outsourcing the operation for these two wharves to provide efficient services to the people of PNG at lower and affordable prices.