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EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf

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Marshall Islands 93<br />

Ports<br />

<strong>The</strong> Marshall Islands Ports Authority (MIPA) is a statutory body established in 1996. It is<br />

responsible for managing the two international ports Majuro and Jaluit. Since establishment,<br />

MIPA has received operating subsidies from the Government, but maintenance has not<br />

been effective, resulting in deteriorating assets and services 94 .<br />

Shipping<br />

In 1999, the Marshall Islands Cabinet approved a new shipping policy that included<br />

competitive tender of Field Trip Services (the term used to describe shipping services to<br />

outer island communities in the Marshall Islands) following a move to privatize domestic<br />

shipping services. This coincided with a reduction of subsidies to general cargo which<br />

resulted in increased carrier charges. A private company currently operates domestic<br />

passenger services to all major atolls within the Marshall Islands. <strong>The</strong> Government is<br />

continuing to privatize shipping services, but is reviewing the level of subsidy and freight<br />

costs to the end user.<br />

A.4.6 Summary of Analysis<br />

In summary we observe that:<br />

In Ports:<br />

Some ports in the <strong>Pacific</strong> operate on the traditional ‘Public Service Port Model’ as<br />

a government department or as a corporatized port authority 95 . <strong>The</strong> wharves on<br />

outer islands are owned and operated by provincial or local governments<br />

In the Caribbean, many ports have moved from the Public Service to the<br />

Landlord Port Model. Under this model: the Port Authority acts as a landlord and<br />

regulates the port operations which are carried out by private operators,<br />

infrastructure is leased to private operators who provide and maintain their own<br />

superstructure<br />

In the <strong>Pacific</strong> the Ports of Suva, Apia, Nuku-alofa and Pohnpei have adopted the<br />

landlord model. <strong>The</strong> Samoa Port Authority is a good example of where this is<br />

working successfully<br />

<strong>The</strong> landlord model has been less successful in Fiji where services have been<br />

contracted out to Government monopolies<br />

In Samoa and Papua New Guinea there is, competition between private operators<br />

appear to have contributed to competitive costs<br />

93 Sources: “Marshall Islands Meto 2000 Economic report and Statement of Development Strategies” ADB<br />

2001 and “Technical Assistance to the Republic of the Marshall Islands for Preparing the Outer Island<br />

Transport <strong>Infrastructure</strong> Project” ADB, Sept 2000<br />

94 <strong>The</strong> ADB Technical Assistance report (Sept, 200) notes that “Despite the Government’s efforts to maintain ports and<br />

airports within the country, the general obsolescence of existing facilities and equipment, coupled with the large distances<br />

involved has severely compromised the safety of sea and air transport”<br />

95 <strong>Pacific</strong> Regional Transport Study, AusAid, 2004<br />

139

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