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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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