The government of Papua New Guinea has renewed its contract with Bismark Maritme Ltd, in the context of the Freight Subsidy Scheme. The first phase of the scheme lapsed on 10 August.
Minister Sam Basil has stated the effects of this pandemic will be here for the rest of the year, therefore the K3 mln (€720,000) funding for the second phase of this scheme was approved.
Basil said the second phase of this freight subsidy program will be a 75:25 arrangement where the National Government will subsidise 75 per cent of the freight cost from Lae to Port Moresby for both dry and reefer containers while shippers will pay 25 per cent only. According to Basil, the program started at the time of the first Covid-19 lockdown and state of emergency period to ship vegetables and agriculture produce.
"With the SOE Controller's approval, the government through the Department of National Planning and Monitoring entered into a six months agreement with Bismark Shipping Limited to ship fresh produce from the Highlands and Momase regions to be freighted from Lae to Port Moresby meeting the city demands," he said.
Postcourier.com.pg reports how in the first four months of the first phase, Bismark executed 14 voyages carrying a total of 912 containers.
