EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
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Port charges vary significantly within the region. Suva, Fiji has consistently higher charges,<br />
followed by Port Vila in Vanuatu. Apia, Samoa and Honiara in the Solomon Islands have the<br />
lowest charges of these ports, followed by Port Moresby in Papua New Guinea. It is<br />
significant that in both Apia and Port Moresby port services (such as stevedoring) are<br />
provided on a competitive basis. In Papua New Guinea there is also competition between<br />
ports. By comparison, Suva port contracts out stevedoring services to a government owned<br />
monopoly provider. This suggests that the competition contributes towards lower port<br />
charges and greater service efficiency.<br />
Freight Rates<br />
Freight rates are more significant than port charges in the total cost of maritime trade.<br />
Figure A.33: Comparison of Freight Rates<br />
2500<br />
Freight Rates ( per 20' container)<br />
2000<br />
1500<br />
1000<br />
500<br />
0<br />
Australia - Fiji<br />
Australia - PNG<br />
Source: <strong>Pacific</strong> Regional Transport Study, AusAid 2004<br />
Australia - Kiribati<br />
Australia - Tonga<br />
Australia - Samoa<br />
Comments from the recent <strong>Pacific</strong> Regional Transport Study of relevance to this section are:<br />
Freight rates to and from many of the <strong>Pacific</strong> countries appear higher than rates<br />
charged on main line trades<br />
<strong>The</strong> cost of shipping services to these countries is high due to: long distances<br />
between ports of call, small scale of cargo flows, trade imbalances with high<br />
container repositioning costs and the need to employ relatively expensive geared<br />
vessels<br />
Rates to and from Fiji are lower than rates to and from other <strong>Pacific</strong> countries<br />
such as Tonga, Samoa, Kiribati and Nauru. This can be partly explained by Fiji’s<br />
relatively high trade volume and relative balance of trade. In addition, the higher<br />
volume of cargo shipped to and from Fiji attracts calls by a larger number of<br />
container operators creating a more competitive environment. <strong>The</strong> route from<br />
Australia to Fiji is highly competitive. It also has the lowest freight rates.<br />
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